MY SITE
  • Our Services
    • We Manage Property!
    • We Buy Commercial Property!
    • Partner With Us!
  • Available rentals
  • Current Projects
    • The Wilder
    • Pulver Studios
    • The Cunningham
    • 17 East Main Street
    • JW On Monroe!
  • Past Projects
  • About Us
  • ROC Blog
  • Contact

real thoughts ON
Real Issues IN
​Real Estate

How to set up an exit strategy from a real estate partnership

12/16/2020

0 Comments

 
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!

0 Comments

What is a real estate Developer?

12/8/2020

8 Comments

 
Picture
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:
  • A deep understanding of the leasing markets in which they are pursing development.  If they are going to bring a vacant building back to life or transform it into a higher and better use, it is crucial to understand how the end user will value their space.  This knowledge is gained by studying comparable properties in relevant location and actually familiarizing themselves with those products.  It's one thing to understand market data but it requires a hands on approach to term that data into actionable intelligence.  At OakGrove Development, we utilize software systems like the Multiple Listing Service, CoStar and Loopnet to help us with data.  Not only that, we spend considerable amount of time walking properties, networking with brokers and appraisers.

Picture
  • Successful development requires a rich understanding of how banks, lending institutions and investors analyze; underwrite property investments.  A developer might have several funding sources involved in a project.  Those funding sources may be investment partner equity, mezzanine debt, construction financing, historic tax credits, brownfield tax credits, economic development agency loans, grants, etc.  Because development involves a tremendous amount of up front capital, it is mission critical as to how a bank is going to look at your project, how an investor is going to look at our project and how a real estate broker will view it.  The reason for this is simple: knowing your exit strategy and financial stakeholders exit strategy.  How are you going to pay your investor back?  How are you going to pay your bank back?  At OakGrove development, we utilize our collective real estate experience of almost 40 years to not only bring the highest and best value to our projects but to also de-risk those projects through our conservative and exhaustive underwriting.

Picture
  • Successful development requires relationships with best in breed third parties.  There are many experts, consultants and professionals who play a pivotal role in any project: attorneys, real estate brokers, bankers, architects, accountants, government agencies, environmental consultants, general contractors, etc.  Relationships with the right team members take years to form into the powerful bonds that result in development magic.  Relationships over transactions is a core value in our company.  Because when you find someone who shares your values, has honesty and integrity, who goes above and beyond... you stick by them.  Our relationships are our biggest asset.

8 Comments

How to drive maximum resident retention!

12/7/2020

0 Comments

 
PictureCo-Owner David Martin inspecting roof at 17 East Main Street in Rochester, NY and taking in the fabulous view!
​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?
  • Flawless Move In Experience - Many property owners start out on the wrong foot when they lease to a new tenant.  When a tenant moves into your apartment home, it is crucial to have everything right.  The apartment needs to be sparkling clean.  It needs to have proper pre maintenance.  It needs to be delivered on the day that is promised to them.  If this process is fumbled in any way, your tenant doesn't forget it, and you can kiss that lease renewal goodbye for next year.  Our team has adopted a proactive approach to the move in process.  The apartment undergoes a thorough pre maintenance checklist, making sure all outlets work, the heating/cooling works, all lights work, plumbing, appliances, that the apartment is professionally cleaned, smells good, etc.  We double check and make sure the keys that we are giving the tenant actually work.  We make sure there is no interruption in utilities.  After all of this, after we give the keys to the tenant, we send out a move in survey 2 days after the tenant moves in, just to make sure everything is right.  Believe it or not, great customer service is a proactive thing, not reactive.  People do not like to complain.  Most remain silent and don't renew their lease next year.
  • Responsive Maintenance - Our maintenance technicians will respond within 24 hours of a maintenance request and usually have the repair done that day.  Our entire team is dedicated to quality and responsive maintenance; the job is done right, the first time, every time.
  • Proactive Maintenance - Our staff will inspect the interior and exterior of your property regularly (we tidy up common areas and pick up around the property regularly), identify potential problems such as leaks, mechanical issues, and other deferred maintenance before it blows up into an expensive emergency.  Investment properties abide by the rules of Murphy's Law, if something bad is going to happen, it will happen and at the most inconvenient time!
​Easy to use management software.  After thorough research and experience with multiple property management software, we selected Appfolio for our company.  It is incredibly mobile friendly, allowing your tenant to pay their rent, receive text and email notifications concerning property maintenance, and submit maintenance requests, right from their phone or mobile device!

Picture
Co-Founder Matt Drouin posing before a photo shoot at a model apartment home!
​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!
0 Comments

    Author

    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.

    Archives

    October 2022
    July 2022
    April 2022
    February 2022
    January 2022
    November 2021
    September 2021
    August 2021
    June 2021
    April 2021
    February 2021
    January 2021
    December 2020
    May 2020

    Categories

    All

    RSS Feed

Proudly powered by Weebly
Photos used under Creative Commons from Blue MauMau, jay galvin
  • Our Services
    • We Manage Property!
    • We Buy Commercial Property!
    • Partner With Us!
  • Available rentals
  • Current Projects
    • The Wilder
    • Pulver Studios
    • The Cunningham
    • 17 East Main Street
    • JW On Monroe!
  • Past Projects
  • About Us
  • ROC Blog
  • Contact