Nov 27 2022
3. Leave it to the Pros to Maximize Profits with Luke Leins
Unravel the mystery of how we decide the profitability of an apartment investment. In this episode, Matt and Luke use an apartment deal under contract as a case study to demonstrate the value of a property management company. WHAT TO LISTEN FORLuke’s company, ResProp Management, is using technology to provide more advanced property management services.In addition to your own due diligence, it’s best to have a property management company assess the deal because they have more access to data than your average investor.Your property management company should thoroughly evaluate all ways to increase cash flow.Due diligence from your property management should be strong and include a full walk through of every unit — taking inventory, doing a full lease audit, looking at financials and getting quotes from service providers.ResProp has about 15 people that work on each deal: procurement, accounting, marketing, construction, staff interviews, etc. They also do a lot of pre-sourcing and relationship building with vendors so there are no delays in renovations.The property management company should work closely with the deal’s asset manager to make sure the business plan is staying on track.Luke explains his search for good investments and finding apartment buildings to be the best for his financial goals.QUOTES“We know we have firm bids. We have all our vendors out there. We've got estimates. We know exactly what the capital requirements are with the deal.”“It's like, man, if you can find a good sponsor that you really trust and do deals with, you can do really well. So, it's been a lot of fun seeing that.”ABOUT LUKE LEINSLuke Leins is a Senior Director at ResProp Management and oversees Third Party Management growth and expansion in the Florida market. Luke's background includes development, acquisitions, private-equity raising, and third-party management. Luke's strategic approach is to partner with ownership groups looking to develop multifamily portfolios by assisting with deal sourcing, underwriting, capital planning, and market research. He also works on strategic management changes to maximize property values for owners. Luke holds a BSBA from Colorado State University and is a Certified Commercial Investment Member (CCIM) and Accredited Investment Fiduciary (AIF).CONNECT WITH LUKEWebsite: respropmanagement.comCONNECT WITH USLearn more about passively investing in apartment buildings:Website: hansenholdings.comFree Webinar Training: hansenholdings.com/webinarSchedule Call with Matt: Schedule Intro Call Facebook, LinkedIn, Instagram