Accelerated Real Estate Investor 216: The Advantages of Building Your Own Property Management Company with Feras Moussa
In the world of multifamily real estate, dealing with third party management companies can be a big headache. If you were to ask Feras Moussa, he would tell you that “In a lot of ways, management is the worst business in the world, but it’s a necessary evil.”
Some might find it surprising to hear that creating his own property management company was the right move for his business, but he has no regrets on that decision.
Feras is an entrepreneur at heart, with a tech background. When he left Microsoft, he found his passion for real estate and quickly built a portfolio of rentals and closed 9 deals in his first 12 months!
Eventually, he shifted his focus towards multifamily properties and created Disrupt Equity with his partner Ben Suttles, a company focused on multifamily acquisition and investments for investors. They have raised millions of dollars for syndicators and have been creating strong passive income by leveraging multifamily real estate syndications ever since.
Having dealt with ongoing headaches using third party property management companies, Feras and his partner decided it was time to take things into their own hands. They started their own management company, making the entire process easier to manage and improving accountability at all levels.
In this episode, we discuss the factors that are driving this incredibly hot seller’s market right now, what impact inflation may have on investors, the potential changes to the 1031 exchange and what led Feras and Disrupt Equity to make the decision to create their own property management company. You won’t want to miss this episode.
Key Takeaways with Feras Moussa
- Why Feras believes low interest rates are a huge factor in creating this incredibly hot seller’s market.
- How COVID has actually created additional demand in the real estate market.
- Why so many multifamily property owners have been looking to sell, in some cases 3-5 years earlier than they planned.
- How the risk of inflation could impact the markets, and rent prices. And why that might be a good thing.
- How location has played an even bigger role with Feras’s decisions on where to invest.
- Why Feras leans away from devalue-add deals, and chooses deals with less headaches even if it means the profit is 1% less.
- The added value that Feras has found in creating their own management company, instead of dealing with 3rd party companies-even though it’s not a moneymaker.
- Why Feras is most interested in syndications, and purchasing other syndicators.
- Some of the challenges that Feras’ company faced early on.
- The importance of building your culture and having a bench full of potential staff that are ready to come in and hit the ground running to minimize turnover.
- Why Feras believes the best way to find new deals is by having strong relationships with brokers.
- The reason why referrals are the best way to find investors and partners.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/216
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