We can all agree that this moment is unprecedented and now is the time to be working on the best strategies for coping and laying foundations to weather similar future storms. Joining us today to speak about how her company is dodging curveballs is Anna Myers from Grocapitus Investments. Anna shares some valuable advice for listeners both from an asset management standpoint as well as with regard to how teams should be working together. She weighs in strongly on the value of working with property management firms who have a disaster plan in place, and people shouldn't be scared of using each other’s ideas if they are good ones. It’s about implementing whatever knowledge we can to survive right now. Anna also talks about how her team has switched their mindset from a wealth generation to a capital preservation focus. Our guest gets into some of the specifics of how Grocapitus is dealing with tenants right now, touching on the fine line between offering assistance, filling units, keeping rents paid, and making sure not to accept people who might cause trouble. For some great tips for switching gears and traversing this unfamiliar terrain be sure to tune in.
Key Points From This Episode:
- An introduction into Anna and the value-add/constructed units at Grocapitus.
- The use of management firms and tech in Grocapitus’ systems.
- Anna’s first call in a crisis: her property managers.
- Best practices that are happening right now as far as survival is concerned: collaboration.
- Things to focus on from an asset management standpoint: preserving, not producing, capital.
- Looking out for delinquency rates and how to judge normal ones presently.
- Focusing on occupancy but being cautious because bad tenants can’t be evicted now.
- Different processes to focus on after the crisis is over.
- Continuing to build a ‘war chest’ to buffer future crises; taking on fewer expenses.
- Percentages of drops in net operating income Anna foresees.
- Why people will use their stimulus dollars to pay rent.
- Anna’s superpower: organizing people and data.
Tweetables:
“We really have to team up with our property managers on this. We have to have really, really tight communication. This is a whole emerging world we're in.” — Anna Myers [0:03:21]
“We don't normally have this type of situation where we can't use the eviction as a threat.” — Anna Myers [0:06:02]
“Our number one initiative right now as asset managers is capital preservation of our investors.” — Anna Myers [0:07:59]
“Yes, you can buy real estate in this time.” — Anna Myers [0:11:28]
Links Mentioned in Today’s Episode:
Passive Income through Multifamily Real Estate Group on Facebook
