RG 099 – How To Transform Non-Performing Class C & D Properties into goldmines with Steve Firestone
- Steve works with class C and D neighborhoods
- Steve works mostly in South Atlanta
Nuts and Bolts
Steven Firestone is the managing partner of Crown Bay Group and has been in real estate since 1995. Steve works transitioning neighborhoods in South Atlanta doing workforce housing. These are generally rougher areas that are up-and-coming. These properties are rented by people working in construction, fast food restaurants and airports. When Steve first purchases the property he will weed out any bad influences in the block, anyone that makes the area feel unsafe.
Steve makes the property safe by working with local police to raid the area for drug dealers etc, he installs large lighting in all the public spaces to get rid of any shady corners. Once the area is safe he works on maintenance and creates a property so nice and safe that people don’t want to leave. Steve looks for properties near local markets and businesses, especially if he knows that a Walmart is moving into the area. He also makes sure he hires the right staff that can work on these properties and deal with difficult people. He also always meets with the police who know the areas of trouble and who causes them.
Steve doesn’t buy properties in the bottom class and he has investors to think about and he can’t afford to speculate. This means that he doesn’t go in and do a huge refurb and cause the vacancy to drop. He identifies properties with a good story and space for improvement but that are already cashflowing. He also works on tenant appreciation, which helps increase tenant retention. Appreciation events include a large summer party, Thanksgiving turkeys, backpacks for all kids starting school and fresh amenities.
- Most important habit – Going through his emails first thing in the morning
- Most influential person – His original mentor Graham McDonald
- Most important tool – His phone
- Most important failure – Buying too much too aggressively before the crash
- Contact – crownbaygroup.com