The Best Ever CRE Show JF 3901: Vertical Integration, Operational Control, and Doubling a Portfolio ft. Lee Yoder
May 10, 2025
Lee Yoder, founder of Threefold Real Estate Investing in Cincinnati, dives into the power of in-house property management. He reveals how managing his own 283-unit portfolio dramatically reduced vacancy and turnover expenses, boosting cash flow. Lee shares his journey of building a reliable team and scaling his business, leading to a recent acquisition that nearly doubled his portfolio. The conversation highlights the strategic advantages of aligning management with ownership goals, emphasizing how this approach transforms operational efficiency in multifamily real estate.
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Lee’s Scaling Journey with 3rd-Party Management
- Lee scaled quickly using a third-party property management company for his portfolio.
- He reached 283 units before deciding to bring management in-house due to frustrations and costs.
Misaligned Incentives in Property Management
- Third-party managers focus on maximizing revenue, not minimizing expenses.
- This misalignment leads to unnecessarily high expenses and turnover costs.
Owner Control Optimizes NOI
- Owner management aligns incentives to optimize net operating income.
- This enables balancing rent, occupancy, and expenses for better long-term cash flow.