Your leasing agent is usually the first person a potential resident deals with at your property. If your leasing agent stands out from the rest, the customer is likely to remember your property as well. Do what you can to facilitate this.
Leasing agents will always give out cards to customers. That is standard procedure in most cases. What if your leasing agents could make their business cards special? One way to do that is to customize the backs of the cards.
There are little postage stamp sized pictures that you can have made and put on the backs of the cards. These will impress the customer in such a way that they will want to keep them. They are more than just a name and contact information on a card. This is something personal.
Another idea for your agent is to put their own mission statement on the card as well. Then, when the customer leaves, the leasing agent can take the time to personalize a floor plan drawing by writing them a heartfelt note. They may go away feeling that you have singled them out for special attention.
It is important that customers have a feeling of personally knowing the leasing agent. One way to do this is to use a section of your webpage. You can put an audio section on it where the customer can hear the voices of the staff inviting them to the property. Putting a voice with a face fosters trust.
You can personalize the apartment or condo with monogrammed linens. You can also get things like coffee mugs with your name on them. Anything that will produce a memory point with the customer is beneficial.
The leasing agents can be remembered by the clothing they wear. Every time they see a person wearing a certain type or color of clothing, they are working as a leasing agent for your property. That sparks recognition.
The customer will definitely remember their leasing agent if a strange package arrives at the door from them. It might be anything that you can use to drive home your message. For example, you could send a valentine heart with the message, “We heartily invite you to come back and rent with us.”
The agent can distinguish him-/herself by using the telephone. People like to receive friendly calls. It might just be a call saying that the leasing agent invites them to come to your property before they go to any others.
If this sticks in their minds, it can have an enormous effect on the number of people who will rent. By seeing your place first, they judge every other place by yours. This gives you a definite advantage.
The leasing agent can put in an effort to make a good and lasting impression. When customers have a warm feeling towards the leasing agent, they will feel more comfortable about visiting your property. They will also feel a sense of trust in that agent when leasing that condo or apartment. It really makes a huge difference.
 |
 |
Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back for new teaching videos from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
|
|
Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back for new teaching videos from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
|
|
Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
Check back over the next four days for a new teaching video from Dave at the Apartment House Riches Boot Camp!
Sign up below to discover how YOU can learn more about the strategies that Dave mentioned in the video!
|
|
There is a belief that an apartment investor can “get away with murder” by not having a professional property management person on site is negligent on the property management spectrum. The stark reality is that next to the rents, the property management aspect is top of the list for essentials in the apartment investing market. The average apartment complex has a few hundred units and at the very least, 40 hours of daily work tasks. These tasks need to be done on the occupants schedule not the schedule of the management. This creates a very interesting dilemma for any of the property investors that feel a 40 hour employee on site is either unnecessary or unwarranted. In both aspects this is incorrect. A simple table will demonstrate why this is a reality and a reason to employ a property manager on site, at least part –time.
Four Reasons to Come out of Pocket for a Great Property Manager on Site
• Professional Presence: Many Residents Prefer and Expect a Person On Site
• Customer Service Advocate: Professional Approach
• ‘Fire’ Person: Daily ‘fires’ That Blaze and Can Destroy an Investment/ Separate from the Real ‘Flames’ of a Fire
• Maintenance Issues: If There is no Dedicated Maintenance Person On Site the Professional Property Manager Will Know Who to Call or Do it Themselves
• Collection: Collector of the Rental Units Dues.
These issues listed above are very important and that list is just a microcosm of the reasons that can be formulated in the realm of property management for apartment investing success. Many other reasons are commonsense related and need no further defining and if they did then possibly there are other investment alternatives in the horizon. The apartment investor realizes all too well that the risk of failure in the business of renting units to strangers is relatively high. The nature of the business screams for the property to be adequately protected with a professional on site during the working hours of early morning to late afternoon. This is just how it is so when the check is being written, for the purchase of the apartment complex, make certain that an additional percentage is weaved into the final amount. This will make it that much easier to hire the property manager off of sites like IREM.org.
Are There Reasons to Not Employ an On Site Property Manager?
Yes. The size of the apartment complex may will decide what time of management you will need.. The tasks are so monumentally challenging to own and operate an apartment investment that the reasons for not employing a trained professional are almost not there. For some areas of the United States, where the rentals can be seen as almost homeownership by the clientele, these are the ones that can afford to not have an on-site property person. In the end the apartment investor that is serious about maintaining the integrity of both the rental units and their own will think very seriously about the hiring of an on-site property manager.
|
|
Would you like to be notified every time I post a new blog entry? Click here & subscribe to my blog!
As you may well know by now, private money funding is one of several options you have for funding a commercial real estate deal. The real trick is to know where to find such funding, and then to know how to lock it in so you can properly use it. I’ve used my share of private money over the years and what I’ve found is that private lending success comes from two key things: how you present yourself and how you present the deal.
Presenting yourself to a private lender needs to revolve around your professionalism and your commitment to the types of deals you do. For this reason, a simple summary proposal is a nice touch, when you first begin visiting with a particular lender. In such a proposal, you can provide snippets of your business philosophy, history, experience, etc. You can also show examples of how you would handle a particular deal, giving a lending prospect a quick idea of what it is like to do business with you.
There are several ways to put together a summary proposal and there are a similar number of things you could call it. The bottom line is that if your business is worth telling people about, it’s also worth putting in writing, and a person looking to learn more about you is less likely to want to read a full-blown business plan that is less relevant to their immediate interests.
Once you have gathered some interest from private lenders (not to understate the importance of this step), the next step is to actually present a deal to them when one comes your way. How you do this will be very important, given that your credibility with a seller will be somewhat dependent on your ability to not only attract funding, but also have it when you need it most.
When putting a project summary together, remember the key components that are important to you when you evaluate a commercial deal for your own business. First, there is the price tag, which should be competitive, relative to market value. Second, there are the market conditions, which should show some stability and also signs of good future growth. Last, there is of course the property’s cash flow, which should be acceptable to all parties involved. Once the basic elements of a deal are in place, then you can really dive in and start negotiating the terms of use for a private lender’s funds.
Don’t ever forget that using private money is serious business, so make sure you have a good team in place to support your efforts, and be sure to treat a private lender’s funds as carefully as you would your own. These two things can really simplify the use of private money and open key doors of opportunity for your commercial real estate business.
|
|
“I read this interesting article in this month’s units magazine. Notice that it’s talking about all of the bargains that are available. People say I got a head start because I bought properties so cheap during the last down turn, well they are right and now it’s your turn to have people say that about you!! Enjoy the article and put in an offer today!!”
For many investors, high-quality properties are available for about 50 cents on the dollar.
While apartment owners trying to dispose of properties purchased at the peak of the market may be feeling indigestion from all the red ink, investors with cash are licking their chops at the number of apartment communities available for purchase at sizable discounts.
“If you have access to capital, you can buy properties for 50 cents on the dollar,” says Del Walmsley, an independent rental owner, investor and Founder of Houston-based Lifestyles Unlimited.
A number of factors are contributing to the abundance of discounted properties. Large companies, such as REITs, need to raise cash and increase liquidity to pay dividends and pay off debt. With secured capital so difficult to come by in the current market, they must sell properties in which they have equity.
Tim Naughton, President, AvalonBay Communities, said at a National Multi Housing Council finance forum in early June that his company has been in defensive mode, raising capital and increasing liquidity. Disposition of properties, he says, is “a backdoor way of tapping the secured debt market without bringing more secured debt onto the balance sheet.”
The difficulty with accessing credit also makes it more difficult for real estate owners who purchased with high leverage at the height of the market (2005 to 2007) to refinance loans that have begun to come due. With lenders calling on those loans, the owners must sell to meet their obligations.
Even “traditional” foreclosures—those caused by ineffective operators—are creating opportunities for investors. Because banks also are pursuing liquidity, they are selling apartment communities they have obtained through foreclosure for low prices. Investors may be able to acquire distressed properties from the owner, through a receiver, a share sale or directly from the lender, the bank or insurance company, says Greg Guerrero, an independent rental owner and Managing Member of Apartment Services Co. in Tulsa, Okla. In addition to foreclosures, some properties may be available through bankruptcy, he adds.
“When the tide goes out, you see who’s swimming naked,” Guerrero summarizes. “When economic conditions become tough, inefficient properties fail.”
The number of apartment properties falling into financial trouble is far outstripping the number of distressed communities resolved through sale or otherwise, according to a June report from real estate research firm Real Capital Analytics. Outstanding apartment distress is up $8.1 billion year-to-date and totaled $16.8 billion at the end of May, according to the report. Another $750 million of apartment properties had gone into default or foreclosure through mid-June, the report adds.
Those distressed apartment properties are having an impact on prices, though they do not entirely dominate sales. “The percentage of distressed sales in the apartment sector is up considerably this year,” the report states, “but still only averages between 10 percent and 15 percent of total volume.”
Local Banks Lending
With so many lenders no longer in the apartment market, it may be difficult for investors to find capital to take advantage of these opportunities. But that difficulty in finding financing also means investors may face less competition in bidding for properties, Guerrero notes. Nevertheless, he says he still faces competition in his market. “It’s always a matter of what the market will bear,” he says. “Some people have paid amounts that are greater than I’ve been interested in paying.”
Walmsley says money is still available from local banks to investors who are known and well-regarded in their community. “It’s not what you know, it’s who you know,” he says.
Walmsley asked his mortgage broker to take his financial statement and shop him around to about 50 banks. When the broker finds a bank who might be interested, Walmsley goes in to talk to the banker, who sizes Walmsley up to see if he would make a viable business partner. “It’s going to come down to whether the investor has enough money, enough background, and enough credibility to pull a deal off,” he says. It’s most important that investors have prior experience in apartment investment, he says. “It’s more about you than it is about your credit score.”
Instead of putting all his money in one bank, Walmsley also is putting his money into other banks with which he hopes to do business.
More Equity, Less Debt
Real estate loans that are available may be more conservative—investors might have to put down 30 percent in equity instead of 20 percent, for example. But investors who are hesitant to invest 30 percent equity in a purchase are missing an opportunity, Walmsley says.
A community that cost $2 million last year would require a 20 percent down payment of $400,000. That same community might cost $1 million this year, so even a 30 percent down payment is only $300,000. Even if the NOI of that community is less, the investor will still see cash flow because of the lower debt servicing payments. Plus, the community has the potential to rise again in value.
Special Offer article written by Jeffrey Lee of Units Magazine.
|
|
Twitter
LinkedIn
Myspace
Facebook
Live Events