The Best Ever CRE Show JF 3983: Asset Management Insights, Third-Party Risks, LP Due Diligence Tips Ft. Tyler Krengle
Jul 31, 2025
In this insightful discussion, Tyler Krengle, Head of Asset Management at Rockfish Capital, shares his journey from Banyan Equity to leading operations in partnership with a German sponsor. He highlights the critical differences between third-party and vertically integrated property management, revealing potential risks related to misaligned incentives. Tyler emphasizes the importance of early property management involvement in underwriting, navigating construction oversight, and understanding the human elements that drive successful operations, alongside essential due diligence tips for investors.
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Involve Property Management Early
- Always involve property management before submitting a letter of intent (LOI).
- This ensures underwriting aligns with management capabilities and avoids fatal errors in deal expectations.
Retail vs Institution Investor Behavior
- Retail investors typically ask more questions than institutions due to less experience.
- Institutions perform deeper verification, reducing their need for detailed queries during capital raises.
Scrutinize Property Management Contracts
- Always ask for detailed management contract terms including fees and minimums.
- These details affect cash flow, especially in turnaround or distressed projects, aligning incentives properly.