Partnerships are a great way to level up in real estate investing and development. The three components of a successful project requires an opportunity, experience and capital. Investors are often lacking in one or two of these components, so what do they do? They oftentimes partner with others who can bring these components to the table.
One critical error that a lot of people make is not structuring an exit strategy for that partnership. Things can be euphoric when you first enter a partnership but that relationship can change over time so you want to make sure you have a very well defined partner buyout plan to wind that partnership down in your operating agreement. Incidentally we made a presentation talking about this very subject and posted it below!
Let us know if you find it helpful and what other real estate related content you'd like to see!
What is a real estate Developer?
A real estate developer is an individual or organization that acquires real estate with the intention of transforming it or increasing its value in many ways. OakGrove Development is always seeking to acquire undervalued real estate assets in great locations with historic value. A development project might not always be a vacant piece of land or a vacant dilapidated building. We have acquired buildings that were fully occupied but had some aspects that were missing in reaching highest, best use and value. Such as buildings with low rents, high expenses, or a less than optimal tenant mix. So what does is take to be a successful developer?
A successful developer possesses the following qualities:
At OakGrove Management Group LLC, you can trust that your property investment will be in the best hands. Unlike other management companies, OakGrove's staff is committed to driving high tenant retention for our clients. As investment property owners themselves, OakGrove Management Group's founders David Martin and Matt Drouin, know that high turnover means high expenses for property owners. However, most management companies do not assign this as top priority. These expenses include: vacancy loss, make ready costs, leasing commissions, utility expenses, etc. The National Apartment Associations estimates that these costs usually average between $1000 and $3000 per turnover! Did you also know that 60% of tenant turnover is controllable with staff performance the largest determining factor according to Satisfacts Research?
So what does OakGrove Management Group do to drive customer satisfaction to help retain your tenants?
If you want to get your valuable time back, have peace of mind, increase value and cash flow; know that your properties are being managed by best in breed real estate professionals, then contact us today for a complimentary portfolio review, where we will survey your properties, analyze your income and expense statements, and make recommendations on how to increase your cash flow, how to streamline your operations, and reduce your headaches. We will do all of this whether you hire us or not! So if your properties collectively produce over $10,000 a month or more in rent, call us at 585-413-4410, you would be an ideal candidate for our management services!
This blog serves an an outlet for all of our invaluable team members to share their insight on development, property management, and all things affecting real estate in our community.