095: From 97 to 82: WTF?

Oct 22, 2019

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Forestwood Apartments in Slidell, LA, is an amazing property that I purchased. It generated cash flow from the beginning without a lot of work. Terry, the property manager, never went below 97% occupancy for three years. He knew every tenant’s name and got along with them. Then, citing the need for less stress, Terry resigned.

Today, I’m talking about the real stuff of multifamily investing. What you go through, emotions you experience, mistakes you make, and gaining growth from pain.

Topics on Today’s Episode:

Pre-training Process: Managers are deployed, live onsite, and strive for 96 to 100% occupancy
Strategic and Methodical: From cable wires to faded outdoor paint, finish and complete rehab before starting next project
Renewal retention rate is how you make money in multifamily investment space
Green to Pink: Property went from greater than 95% to 94% in one month
New manager not a country boy; occupancy dropped to 82% in second month
Who is in charge? Property owner because no one else cares more; be a squeaky wheel to get the grease and fix problems
Communicate with Investors: Don’t give good or bad news, just give the news
Property Managers, Investors, Operators, and Owners: Don’t freak out, pay attention, and lead others to prosperity by being calm, focused, and determined

Links and Resources Mentioned:

Quotes:

“If you’re not demanding a lot from your managers, you’re probably doing it wrong.” Corey Peterson

“We’re in the people business. We hire great people to run and manage great people and give them a home.” Corey Peterson

“The way you make lots of money in this business is that renewal retention rate.” Corey Peterson

“The squeaky wheel gets the grease. I wasn’t squeaky enough.” Corey Peterson

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