Property managers are key players in getting the best deals for their investor clients. But it’s not only about the sale; there many are other ways that property managers help their sponsors maximize their earning potential on any given property. So, joining us today with some important advice on how to use property managers correctly is the Owner of Avant Garde, Anthony DeAugustine, and his Vice President, Bob Myers. After gaining a sense of the properties that our guests manage, we learn about investor behaviors surrounding value adds, whether mid-century rentals will reach a point where big renovations are justified, and why the Phoenix housing market is not on its deathbed as portrayed by mainstream media and analysts. Then, we get into the meat of our conversation as Anthony and Bob explain how they help their clients with preliminary evaluations, why construction and renovation costs matter, what ‘loss to lease’ and ‘contract service’ means, and why you should always have a replacement reserve fund. We end our discussion by taking a deeper look at value adds for mid-century, 50-unit properties, and our guests share some incredible advice for how first-timers and investors who want to scale up should approach Avant Garde and other property managers.
Key Points From This Episode:
- A warm welcome to the team from Avant Garde, Anthony DeAugustine and Bob Myers.
- The properties that Avant Garde manages and how the market has changed since last year.
- Why investors are wary of taking on the value add risk with their exchange money.
- The vintage range of the properties that Avant Garde is currently managing.
- When (and if) rent for mid-century units will recover enough to accommodate big renovations.
- Why the Phoenix housing market is not doomed as the media paints it out to be.
- How Anthony and Bob help investor clients with their preliminary evaluations of properties.
- The importance of understanding the full scope of construction and renovation costs.
- Our guests define and then give examples of ‘loss to lease.’
- Listing everything that qualifies as a contract service, and how to right-size your expenses.
- Why you should always have a replacement reserve and where you should put the funds.
- Advice for how to work with companies like Avant Garde when scaling up your investments.
- What the perfect amount of value adds look like for a 50-unit, mid-century property.
Links Mentioned in Today’s Episode:
Anthony DeAugustine on LinkedIn
Anthony DeAugustine Phone Number: 602-741-8054
Bob Myers Phone Number: 602-501-8271
Passive Income Through Multifamily Real Estate Facebook Group
