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- #11
Wow, how things have changed in a year. I decided to update this thread for posterity. :smxB:
Let's see how things have progressed since 2007:
Since the company has taken over, they have been able to not only implement my business plan to a T, they have the creativity to adapt and solve problems with haste like I have never seen before. Some of the more notable achievements they have at my building:
Personally, I can't even explain how good it feels to succeed to this point despite all the difficulty I have run into. I have experienced some of the worst situations you can imagine and emerged successful. It's these hard knocks that make success all the more sweet.
For those of you Moral-of-the-Story types:
Never give up!:icon_super:
Let's see how things have progressed since 2007:
- I canned the old property manager, but was able to part on good terms. She lacked the experience I needed and I lacked the personality she works well with. I pulled the plug in February 2008. Rather than parting in a big fight, I explained to her why it wasn't working in a very non-confrontational manner. I focused on my issues as opposed to what I felt she was doing wrong. This worked out well for me as we have stayed in touch and she continues to fax mail/bills over that haven't had the addresses changed.
- After that, I hired a new property manager, a big corporate type. This is one of the large PMs in the area. I spoke directly to one of the partners. Very intelligent guy, great ideas, but got the feeling that my small building would risk being neglected for the larger money-makers. Unfortunately I was right, and that became especially evident as the company ran into massive liquidity issues when they bought out two partners using coporate cash on hand. I pulled the plug on these guy in July 2008. This was most disappointing because the company really has the infrastructure to be successful.
- I ended up hiring a smaller company that was referred by the corporate PM. They were a smaller company just getting started. I originally interviewed them for a smaller collection of buildings I had several miles north of the apartments and they started in January of 2008. I was very impressed with their abilities and moved the apartment building to them in September 2008. I made the switch clean and immediate as I leared from the first situation that once a PM is given notice, they typically take their hands off the wheel.
One of the more colorful issues, in particular, came from an industrious but misaligned tenant who obtained keys to the vacant units as well as the basement and was renting them out for $100/month to people on the street. Despite loading the property with the riff raff I had just evicted, he was pocketing all the revenue himself. He will have plenty of time to discuss his next business venture with his cellmate.
Other issues included a drug dealer/tough guy who took up residence on the top floor. He would bully many of the good tenants but was smart enough never to be caught doing anything wrong. He and his scumbag buddies quickly left the building when my PM started Coffee & Donuts Nights for the local police department. The police would come by nightly and visit with my PM.
Now, about the new PM I am using: the guy is an absolute stud. He is down to earth, incredibly good with people (from the millionaire investor to the class-c tenant late with rent), very humble, fearless, frugle, an excellent negotiator, and absolutely loves his job. I pretty much hit a royal flush with him. Edge has had a chance to chat with him before and I think they got along well too.Since the company has taken over, they have been able to not only implement my business plan to a T, they have the creativity to adapt and solve problems with haste like I have never seen before. Some of the more notable achievements they have at my building:
- Refinishing three floors of hallways by giving free rent to an out of work hardwood guy. Total retail cost = $4500, effective cost to me $1350.
- "Evicting" individuals in less than a week, getting them to clean the units and forfeit their deposits. He does this by showing them respect and empathy, explaining the situation, helping them find another place, even a job, and using his van to move their items out. Its incredible what someone is willing to do when you give them a little respect and help.
- Increased revenues every month like clockwork. Each month has been the best month the property has had. The site is much safer, cleaner, and more attractive leading to increased rents which tenants are more than happy to pay. There is also a pride of living that the tenants have now - no more cigarette butts on the patio, garbage on the landing, or muddy footprints in the hallways.
Personally, I can't even explain how good it feels to succeed to this point despite all the difficulty I have run into. I have experienced some of the worst situations you can imagine and emerged successful. It's these hard knocks that make success all the more sweet.
For those of you Moral-of-the-Story types:
- You hear this all the time on this board, but your health is your most important asset in any investment endeavour. If you have good health, any other problem can be overcome.
- Hire people for their aptitude, not experience. Experience is something that comes with time, aptitude is something that cannot be learned. Be wary that your personalities mix well.
- It sounds cliche, but never give up. Through these difficult issues, for a solid three months everyday I woke up I said to myself, "I will never give up." Eventually you hardwire yourself for success.
- Respect is one of the easiest ways to solve people problems. Giving it costs nothing and seems to motivate people of all types to be better citizens. A disrespectful attitude, on the other hand, is one of the most expensive and destructive character flaws I have encountered.
Never give up!:icon_super: