By Marc Courtenay
When I first spoke with Marshall Saunders, a 30-year veteran in the Midwest real estate market who owned and ran the largest RE/MAX office in the world, I knew he’d be an effective advocate.
It wasn’t even because he now owns a leading midwestern real estate investment platform, SaundersDailey, which led me to believe he was an effective ally for property managers. No, more than anything else, it was Marshall’s understanding of the benefits of having well-managed rental properties that impressed me the most. He knew the value of great property management.
“The best managed rental locations have almost a zero vacancy rate,” Marshall proclaimed. “Yet in our local region [Minneapolis-St.Paul] the vacancy rate averages about 4%.” That begged the question, “What, in your opinion, defines the best managed rental properties?” Without hesitation he answered, “It begins by investing in safe and secure markets!”
Although that’s another version of “location, location, location,” Marshall explained that effective property managers steer their clients towards areas that have “…strong and stable growth.”
Marshall co-founded SaundersDailey, he explained, because there’s an estimated 8 to 10 million smaller investors who want to pool their resources with experienced rental income real estate shoppers.
As with property management, Marshall told me that “…it takes a lot of hard work, planning and educating to bring the right investors to well-located properties with upside growth.”
There’s an entire genre of owner-investors and future landlords “who might not be able to afford the place they sleep in but they still want some sense of ownership with a shared level of risk.”
Once the right properties have been carefully screened, selected, and purchased, advocates like Saunders know how critically important it is to have the most skillful management in place.
“I encourage property managers to formulate a group of their clients who want to “crowd fund” an income real estate project in their area. The property managers can also use SaudersDailey to help raise equity and find promising locations.”
Once a property manager has taken those steps, advocates like Marshall will work with that specific manager to “help guarantee that the management position belongs to them.” He and his associates assured me there are “ample opportunities for those property managers who want to offer outstanding services while participating in a process that offers shared investments.” This may lead to another income stream for property managers, especially those who want to participate in the equity funding experience. Imagine being both part-owner and the property manager!
This is a motivational talking point with owner-clients who want to expand their inventory without being over invested. 506-C companies like SaundersDailey can facilitate this rewarding process. Our clients need advocacy and guidance too. They need management that helps them to avoid being over leveraged while decreasing the risks inherent in the next inevitable real estate market downturn.
Property owners and managers also appreciate continuing education. The smart ones network with seasoned, experienced local real estate specialists with the objectivity of a 506-C business model. As our interview concluded Marshall summed up this topic by sharing,
From:: Property Management
