Advance Praise
Kyle & Gary do a fantastic job of laying out the things involved with apartment investing that many are just not educated on and not enough people are talking about. Reading this book will separate you from your competition when executing your business plan while growing wealth for you and your investors.
Neal Bawa, Founder and CEO, Grocapitus
I see many people get into commercial real estate and think, If I can only find the opportunities and raise the money, I can do deals! Those are extremely important aspects to building your real estate portfoliobut Asset Management is critical to keeping your real estate portfolio. The work doesnt end once you close on a property; thats when the work really begins. Youve gotta have your ducks in a row, and Kyle & Gary give you the tools to do exactly that in this book. Their insights are profound; dont take them lightly!
Tim Bratz, CEO, Legacy Wealth Holdings, @timbratz
Asset management isnt the sexiest part of the real estate sector, but it is the key difference maker between those who will only succeed when the market is favorable and those who will protect and grow investors capital through all stages of the economic cycle. Gary & Kyle have provided a ton of great content about best practices in asset management through their podcast and summit, and this book puts it all in one easily accessible place.
Hunter Thompson, author of Raising Capital for Real Estate
Gary & Kyle share a ton of best practices to help you become a better operator. This book is a great road map for beginner to intermediate operators looking to gain a competitive advantage in a tight market. Who doesnt want to learn ways to increase their NOI?
Brandon Hall, CEO, Hall CPA PLLC
If you want to learn how to be a successful Asset Manager, then read this book. Gary & Kyle go over many of the scenarios that an operator will face. It doesnt matter if you manage a couple of units or many thousands; this book will help guide you to be better.
Gene Trowbridge, Founding Partner, Trowbridge Law Group LLP
As a passive and active multifamily investor, I frequently reference this book for the invaluable asset management systems and strategies. The outlined principles have boosted my confidence to be able to manage any size deal. Gary & Kyle have truly inspired me to become a Best in Class multifamily operator!
Robby Woo, Co-Founder, TRWOO Investments LLC
Copyright 2021 Kyle Mitchell & Gary Lipsky
All rights reserved.
ISBN: 978-1-5445-2088-9
To my amazing daughters, Arielle and Jadyn, whom I strive to show that you can do anything you set your mind to. This book was a lot harder to write than I thought it would be, and they kept me motivated to write and finish the best book possible. To my parents, who have always been incredibly supportive and are two of my biggest cheerleaders. They helped shape the person Ive become today, and I am very grateful for that. And to my brother, David, and sister, Laurie, who are always there for me; it means the world to me.
Gary
To the love of my life, Lalita. If it were not for you, I would likely still only be hoping that one day I will pursue my dreams. But instead, your love, support, and true partnership helped push me out of my comfort zones and into a life we both visualized and have now made a reality. You are my rock. I also want to thank my forever loving and supportive parents, who believed I would be great in anything I set out to achieve. They never questioned my dreams, which instilled a confidence in me to make those dreams my reality.
Kyle
Contents
Book Acknowledgments
We couldnt have written this book without all the lessons we learned from so many others. From our amazing guests on our Asset Management Mastery Podcast to the countless conferences we have attended and even hosted, podcasts we listened to, and books we read that gave us the knowledge necessary to write it all down in one place.
Special thanks to Sarafina Riskind and the team at Scribe for guiding us through the process of writing this book.
Foreword
By Joe Fairless, author of Best Ever Apartment Syndication Book and co-founder of Ashcroft Capital
What do the following scenarios have in common?
- Taking a charge to create a turnover in basketball
- Bunting a runner over to a scoring position in baseball
- A running back blocking a blitzing linebacker to give the quarterback time to throw
Yes, they are all sports-related situations. But lets dig deeper. What do each of these situations have in common?
None are sexy, but all are necessary for the team to accomplish a winning outcome.
For example, when is the last time you heard the following?
Oh man, what a game. Did you see that clutch BUNT that Jerome pulled off? Dang, what a stud!
Or, I cant wait to go see the Lakers play tonight. Oh no, Im not going to see LeBron play. I just want to see them draw some CHARGES on defense! Thats the stuff of legends.
Or even, Why are you talking about that one-handed catch? Didnt you see the TECHNIQUE of the running back picking up the blitz? Picture perfect!
Its silly because it just doesnt happen. But it should because anyone who has been on a team knows there are roles and responsibilities that are undervalued and necessary for achieving successful outcomes. And thats why this book is so important.
This book goes deep into an aspect of owning apartments that many dont focus on and generally isnt talked about enough. The sexy parts of multifamily investing tend to be raising money and finding the deal. Listen to a podcast or just speak to others at a meetup and youll hear the conversation slant toward how investors raised their money or secured their deal.
I think this focus is prevalent because raising money and finding a deal have to do with the acquisitions part of the process, and we tend to gain fulfillment through creating things as opposed to maintaining them. Id certainly (successfully) argue asset management isnt maintenance but rather creation, but unfortunately, I believe a lot of multifamily real estate investors, especially beginners, look at asset management as maintenance. As this book outlines, that is far from the reality. Asset management requires the same level of creative ingenuity that finding a deal does. And it likely has even more unexpected twists and turns than anything that happens before you close the deal (as youll read more about in the Curveballs chapter).
So, bravo to you for being in the minority of people who can appreciate and understand the value of asset management. You are here to learn how these necessary skills will help you be a successful multifamily owner. One of the greatest risks associated with any deal is in the execution of the business plan, and you are taking proactive steps to mitigate that risk for you and your investors.
Introduction
When you learn, teach. When you get, give.
Maya Angelou
Say youve closed your first real estate deal as Asset Manager. This is a big deal for youyouve worked hard to get here. Youve read the books that teach you about how to get started, how to raise capital, how to closeand youve done it! You have your first property! Congratulations.
But a few months down the line, things arent quite going according to plan. Nothing is on schedule, youre not sure how to hold people accountable, and now, the despair is mounting. How will you get this property turned around on time? Will you get the rents you forecasted? How do you get your third-party property management team to listen to you?
