Peter Lohmann's Mailing List - Issue #54

Who Is Your Biggest Client?

A few years ago I was listening to a podcast where a professional property manager was being interviewed about his business.

The guest explained that his company had just launched a brand new initiative called “OBC”, which stood for “Own Biggest Client”. Meaning, they set a goal to buy enough rental property, that they became their own largest client.

What a fantastic idea. I’m curious… for those of you that own a property management company, do you also own & manage your own properties? Please click to vote:

Sometimes it feels like as the property manager, we’re just making our clients wealthy while we settle for scraps. But why should it be that way? As property managers, we have the operational chops, we have the pulse in our market, and we likely have valuable relationships with lenders, brokers, title companies, etc.

It seems to me that we should be taking more advantage of our skillset and connections. What’s holding you back from building a huge real estate portfolio of your own? My guess is that for a lot of people, it’s access to capital (specifically, equity). The good news is that you don’t need to raise all that money on your own. There’s an entire ecosystem of rental owners & managers, called “GPs” or General Partners, that operates in parallel with our own industry. You may have heard them referred to as “Sponsors”, “Real Estate Syndicators” or “Joint Ventures”.

A real estate GP typically sources the deal and arranges the debt financing, and then partners with an “LP”, or Limited Partner, who provides the majority of the equity. In exchange for putting up most the cash, the LP receives some type of preferred return (aka “Pref”) which must be paid back with interest before the GP gets into their “Carry” (basically, their share of the profits). There are many creative ways to structure these arrangements, I’m just providing a typical example.

So — if you’re a professional property manager, positioning yourself as a GP (aka Sponsor) and looking for LP relationships + great deals to invest in, is one way you can leverage your operational skills to grow a real estate portfolio. If you do enough of these deals, not only are you likely to become very wealthy over time, but the GP business will end up becoming a “going concern” of its own, with fee income and employees.

Now I know you’re wondering, where on earth do I meet LPs to invest in my deals? I have great news. There’s an entire conference basically dedicated to bringing LPs and GPs together (along with many other real estate professionals). It’s called Re-Convene, and it’s incredible. Think about all the best parts of your favorite conferences, now imagine if a conference was only those good parts. That’s Re-Convene (hosted by Moses Kagan!) But wait, it gets better. Not only can you look forward to seeing my smiling face on stage this year, I was able to secure a special discount for newsletter subscribers!

To buy tickets:

• Go to re-convene.com/tickets

• Enter the code "RC2023" to get access to the purchase page

• Enter the promo code "PETER23" to get $500 off the list price

P.S. I wasn't paid to write this and I'm not an affiliate for this conference!

White House Crackdown on “Junk” Rental Fees

I need to highlight Wednesday’s email from NARPM with alarming news. Take a look at this… I’m all for transparency, but some of those state laws are absurd and will only drive up the cost of housing, and make it harder for landlords to rent to second-chance residents. I can’t find a way to link to this email, sorry.

This week’s issue is sponsored by: APM Help.

Do you manage rental properties?

If so, you know that tenant turnover can be a major headache. Not only does it cost you time and money to find new tenants, but it can also damage your property's reputation.

One of the biggest causes of tenant turnover is poor maintenance coordination. When maintenance issues are left unaddressed or poorly managed, tenants feel neglected and frustrated. This can lead to a decrease in tenant satisfaction, quality of life, and communication.

In the worst cases, poor maintenance coordination can even lead to safety hazards. A leaky roof, for example, can cause water damage and mold growth. A malfunctioning appliance can start a fire.

If you want to reduce tenant turnover and improve your property's bottom line, you need to invest in an effective maintenance coordination solution that keeps your tenants happy and satisfied.

CLICK HERE to learn how maintenance coordination services by APM Help can reduce tenant turnover and improve your property's bottom line.

Direct Mail Isn’t Dead

We create & send a quarterly magazine to a mailing list of 571 central Ohio multifamily property owners:

This is a 100% original, 100% analog publication that our marketing group creates, pulling content from all over the place including interviews with myself and other team members.

It’s full of valuable info that property owners can use whether or not they have a professional property management company in place. We also include advertisements for our company, my podcast, and our sister company (an engineering firm).

I’m sharing this for two reasons:

1. If you have a mailing list of property management leads and you’re interested in white-labeling this for your market, please fill out this form.

2. If you’re interested in advertising in this publication, please click here.

Special Live Event: Announcing Something New

I’ve been working on something brand new with Wolfgang Croskey, and it’s time to share it with the world.

Register here to watch the special live announcement this coming Tuesday at 4pm eastern.

Closing Thought

Property Management Coaching: I have 1 slot open… Grab time here if you’re interested in learning more. There is a 3-month minimum engagement. Just need an hour or two? Book & pay instantly here.

That’s all for this week! -Peter

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