Rob Rowsell runs down what is in his real estate buy box. That is to say, what criteria every multifamily property must meet in order to interest him in buying it. Take a look at the population, amenities, and demographics when you’re looking to buy and fill rental properties.
What’s in Rob’s Real Estate Buy Box?
Rob has seen his share of ups and downs in the US real estate market. Thus, he has experienced his share of failures along the way to amassing wealth. Only through these hardships could he learn what he requires to fill his real estate buy box.
City Population of 75,000 or More: Filling and staffing multifamily properties is very challenging in a population lower than 75k. The farther from a large metro area you search, the less competition you encounter, but that is for a good reason.
Major Airport Within 30 Minutes of the Property: Nobody wants a long drive from the airport to inspect their properties. Due to reliability and available perks, Rob strongly prefers that the airport be a major international carrier.
Job Growth of 3-5% Year Over Year
Population Growth of 3-5% Year Over Year
Building Contains 80 Units or More: This rule of thumb applies for syndications. Smaller complexes may make it into the buy box, but would likely need to involve a joint venture.
Built No Earlier Than 1980
7% or More Average Cash On Cash Return Over the Life of the Deal:Knowing you can promise this figure to your investors is key to securing their trust.
AAR of 20% Over the Life of the Deal: This means cash on cash amount combined with the increased equity at sale.
No Coastal Properties and No Flood Zones: Nobody wants a letter of cancellation or arbitrary, huge increases from their insurance company. These are out of your control, so don’t risk it!
Join Our Community
Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!
Let’s talk about Real Estate Asset Management after you close Escrow. Rob Rowsell has the rundown on what you should expect from your property management company’s business plan once you close on Escrow. Work hand in hand with your on-site manager and his team, so they know what to expect from you, and vice versa. Regular weekly meetings are key tools to keep up with the management team’s progress. Rob recommends quarterly on-site visits as well.
Real Estate Asset Management through a Property Management Company
You’ve closed Escrow on your new multifamily investment. Now what? When you hired a property management company, they agreed to your written business plan for your real estate asset management. Make sure this plan includes:
Monday Morning Reports (MMR): Train your onsite manager on how you want this spreadsheet filled out weekly. They should report how much rent is collected, vacancy percentage, evictions, renewals, number of maintenance calls made and performed, and number of parties interested in the property.
Weekly Meetings: After each Monday Morning Report, you should email your questions and concerns, then have a phone or Zoom meeting to discuss them. For smaller properties, you may not need to meet each week, but at least bi-weekly meetings are important. Ask the hard questions!
Review Income Statements: You’d be surprised about how much money is leaking out the door due to regular tasks being put off or neglected. Examples include overdue electric bills accruing penalties, and utility bills not being switched over to tenants as soon as they move in. Perhaps the property has bought equipment or tools that the maintenance staff should already own.
Site Visits (as needed): You should occasionally drop in to see the rental property in person. Quarterly is typically the right frequency.
Managing Construction (Value Add): Usually, you or a teammate will need to oversee your construction manager for repairs.
Negotiating Contracts with Vendors
Approving Cap Ex proposals
Regular Investor Updates: Rob posts videos in his online portal to update his investors on their property.
Quarterly Investor Disbursements
Whatever Else May Come Up…
Join Our Community
Do you own multifamily properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!
What’s in Rob’s Real Estate Buy Box?
Real Estate Asset Management through a Property Management Company