What crucial factors can make or break your real estate investment, and how can you ensure your property management company is working in your best interest?

 

In this episode, Angel Williams and Randy Langenderfer discuss the importance of having a strong property management company when investing in real estate. They share stories of how a property management company can impact the success of a deal, from misreporting occupancy rates to failing to pay bills on time. The hosts also delve into the differences between investing in small properties versus large multifamily properties, highlighting the advantages of economies of scale and the value of one's time. Additionally, they touch on the benefits of being a passive investor and the significance of trust in the operator-investor relationship. The conversation also covers the importance of coaching and mentorship in expediting growth and preventing problems in one's real estate journey.

 

Randy is Founder and President of InvestArk Properties and general partner in 1,500 doors representing $250M in assets under management. He has invested in a total of over 3,000 units in TX, OK, AZ, SC and LA. His investment strategy focuses on providing the passive investor significant returns by improving communities using a safe and time-tested approach. He is passionate about helping the busy professional achieve their goals in real estate and has been a part of several national educational programs and is currently a private multi-family coach.

 

He is a board member and previously served as the Chief Compliance and Audit Officer for a large academic medical institution in Houston, TX. He has a bachelor’s degree in accounting, Information Systems, an MBA in Finance, and is a CPA.

 

 

00:00:00 - 00:05:00 The Importance of a Strong Property Management Company

 

- A property management company can make or break a deal

- Be aware of potential issues such as misreported occupancy rates and unpaid bills

- Consider the amount of attention your property will receive based on the size of the management company's portfolio

 

00:05:00 - 00:10:00 Small vs. Large Multifamily Investments: Weighing the Pros and Cons

 

- Smaller properties may require more hands-on involvement from the investor

- Larger multifamily properties offer economies of scale and potentially less time investment

- Consider the value of your time when choosing between small and large investments

 

00:10:00 - 00:15:00 The Benefits of Passive Investing and the Importance of Trust

 

- Passive investing can provide a hands-off approach to real estate investing

- Trust in the operator is crucial for passive investors

- Experienced investors may spend less time reviewing reports as trust in the operator grows

 

00:15:00 - 00:20:00 Effective Communication and Follow-Up in Investor Relations

 

- Investors should not expect operators to know everything about every aspect of the investment

- Operators should be transparent about their knowledge and follow up with answers to investor questions

- Utilizing a CRM can help maintain effective communication and organization

 

00:20:00 - 00:26:00 Investing in Coaching and Mentorship for Long-Term Success

 

- Coaching and mentorship can expedite growth and help prevent problems in one's real estate journey

- Find a coach that fits your needs and commit fully to the program

- Real estate investing is a marathon, not a sprint, and continued education is crucial for long-term success

 

 

Quotes:

- "Just as the operating team can make or break the deal, so can the property management company." - Angel Williams

- "Multifamily is a team sport. You can't succeed without some kind of team effort." - Randy Langen