Expert Blogs

Like art, loans are sometimes critiqued as beautiful, ugly, abstract, well done or amateurish. Unlike in art, we use other words to describe mortgage loans; well secured, in compliance, in technical default, over-leveraged and exceeding disposition value.  But who most uses these words? The mortgagee, the lender. It's true; mortgagee's (lenders) are people too. But most are not real estate people, they are lenders charged with protecting the...

Recent Tenant story... "I'm in the parking lot at the grocery store and a parking spot comes open right in front! I swerve in and, at the very last moment, slam on my breaks. There is a goat tied to a shopping cart right in front of me.  A goat! Right there!  I get out my car and untie the goat and put it in the back seat of my car.  Where do you take a goat in the city?  Anyway, I go in the grocer to get a few thing and I come...

Multifamily's best kept secret is no secret at all; that long-term ownership provides significant financial rewards.  Why do I call this a secret?  Because  so few take advantage of the power of income compounding that is included in the rewards of long-term ownership. In it's simplest version, even if expenses keep pace with rents (rents rise 3%, expenses rise 3% year after year) then still, over time, debt is reduced.  ...

Consider the present interest rate environment as a window knowing there is no such thing as a window that stays open forever.  And, unfortunately but true, sometimes when windows close they slam shut unexpectedly. Financing multifamily holds no special place in the mortgage Eco-system; the same window shuts equally on us also. Are there commercial loan rate sheets in your email box?  Opened them lately?  See any changes?  Like maybe a...

Let's just say you are already over worked, understaffed and touching the limits of a stretched budget with your multifamily assets. As the comedian Ron White opines; "Let's just say".  Now what?  What do I have to add to my already overflowing, brimming  plate?  Hopefully, a few things that will lighten the load by freeing up some dollars and, eventually, staff time. Sustainable Landscaping. Landscaping is an...

Having to manage a difficult employee is never fun and can be the most challenging part of your responsibilities as a property management professional.  While never easy, this article will address a step-by-step way to consistently and confidently handle the most challenging employee situations. In addition, how you handle a difficult employee will send a strong and powerful message to those who still work for your property management...

In the wake of numerous natural disasters over the last decade, it has become sadly obvious that a large majority of the world is not only unprepared for the worst, but remains unconcerned at the possibility of being struck by a natural disaster. Granted it’s understandable most forget when natural disasters hit at random, however, as a major communal threat, it is imperative that your properties have a backup plan available. In aiming for the safety of...

Is it true that to be a good property manager you have to be a little like passion fruit; hard on the outside and soft and sweet on the inside?  Property management (PM) is hard work.  And while "Five Hour Energy" drinks are all well and good, who wants to drink two a day every day? Are we all gerbils on that never-ending wheel?  Granted, there are property's with full time staff devoted to sweeping common areas every...

Seller carry-back financing.  So simple, so eloquent.  So screwed up so often. This article will discuss seller carry-back from the sell side perspective. Most buyers are of the opinion that obtaining a seller carry-back is a good thing.  Most sellers are confused on the matter thus refrain from its’ consideration (as a confused mind always says no- to everything). The current day problem with seller carry-back financing is that most...

Many believe the only reason people rent multifamily apartments is because of housing affordability, meaning; people only rent because they cannot afford to be home owners. This is simply not true. There are a myriad of reasons why people rent apartments. Following are just a few of those reasons. Convenience. Apartments homes can provide varying types of convenience; close to work; easy commute to the city center, proximity to parks, etc. People define...

Every operator wants rent growth.  Rent growth, rent growth, rent growth.  Ok, ok, ok.  I understand.  Year over year rent growth is the most important driver of revenue growth.   How do you get it? 1. Renewals. Always at the top of the list.  Nothing keeps income ticking like retaining in-place residents.  Start the renewal process early.  Recognize this as your number one tool for maintaining stabilized...

Regroup…is this a new management trend?  Not a chance!  Regroup is simply an opportunity to end one month’s business cycle, recap the performance at each property you manage and outline a plan of success for the new upcoming month.  Why does it work?  Because it allows each person on your team to assess their performance from the previous month, and to make any necessary adjustments for the new month.  Here’s how it...