Hiring A Professional Property Management Company Was Not An OptionI had to hire a professional property management company. It said so right in the supplemental terms of the mortgage documents. It really didn't matter to me, however, as I had already decided that I would be employing a property manager to help run my first commercial real estate investment. It makes perfect sense really. Mortgage companies want to ensure that there capital is as secure as possible. If you have never managed a large apartment building before they are going to want to see that there is someone involved who actually knows what they are doing and has a track record. This will likely be a certified property manager. The important point here is this. When you are running the numbers on a potential apartment building deal, don't assume that you can simply manage the building yourself and save yourself the professional property management expense. Besides, if the numbers don't work when you include a management expense then it probably is not a deal you want to consider anyway. So until you have some hands on landlording experience don't assume that a mortgage company is going to let you gain experience while risking their capital.
|
