When you're scaling, there's got to be some downside that goes with it. But whatever that is, the significant benefits that happen more than compensate for the cons.
What are those advantages? That's what we will find out in this episode.
Lee Yoder was practicing physical therapist when he realized his true passion was building his own business and investing in real estate. He took this passion and considerable action to quickly build a portfolio with several small apartment buildings. He was able to quickly reposition this portfolio, bring it full cycle, and provide an incredible return for his investors. Today, Lee is focused on syndicating larger apartment buildings.
In this episode, Yoder compares and contrasts working on bigger deals versus the smaller ones with his multifamily portfolio, including the benefits and disadvantages.
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What you will learn from this episode for 19 minutes:
01:43 - Comparing and contrasting smaller deals versus bigger deals in a multifamily setup [including the benefits of having bigger deals]
04:43 - Number of units to have to justify having an onsite staff to manage the properties
06:07 - Property management staff doing all else other than what their full-time work requires them [and how she is getting paid for this setup]
09:12 - How do they use the 4% that property management people receive
12:10 - The apparent difference in the marketing that they do when it comes to property management doing bigger deals than the small ones
14:10 - Disadvantage of getting into bigger deals with multifamily properties
17:08 - How to get creative with having property management that caters to less than 80 units
"Like the property management company that we're working with now, for all of our properties, they only do the bigger properties. And that's how they're set up. And so, they know how to do that really well. And one thing they do that just blows us away is their marketing. We pay that expense, but what we're getting for it is just blowing us away." - Lee Yoder
"People will talk about, you have one vacancy, and it's not a big deal on a 47-unit like it is in a duplex where you go up to 50% vacant." - Lee Yoder
"With this property management company on the 96-unit, they don't have to charge us for sending somebody out because the people were there. So, the efficiency of it, it's less cost." - Lee Yoder
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