RG 129 – Asset Management 101: Secrets to Successful Multifamily Investing w/ Andrew Campbell
Nuts and Bolts
Andrew is Reed’s business partner and in this episode Andrew flips the script and interviews Reed about asset management. Reed and Andrew are currently 8 months into ownership of their latest investment and the renovation is complete. Reed was the day-to-day asset manager on the project and dealt with the general contractors and weekly calls etc.
Asset management in multifamily property renovations is a separate beast to property management and overseas the property from afar. During the due diligence part of purchase the asset manager goes around the property with their team and decides what needs to be done and creates a capital expenditure plan. Andrew and Reed had a separate pool of money for these upgrades. Rebranding is also included in these upgrades, a rebranding can give a new perspective to a place and allows them to change the public’s mind about the property.
Andrew and Reed’s new property philosophy is to upgrade the interiors, increase the rent by $120 per month and to do this over 18 months. The philosophy for the external property is to make renters want to live here the second they cross the property line and they do this with new amenities, new pool equipment, new branding and signage. They start a project by determining how much the changes will cost and trade between the ‘need to do’ and the ‘nice to do’ and then meet on site with general contractors for quotes. They judge the best GC based on price and responsiveness and recommend keeping space in the quote for any problems on the way. Great contractor templates can be found at the Architects Institute of America.