The Economy & the Single Family Industry
- Is slow growth still the outlook?
- Home ownership trends How low will it go?
- Foreclosure Are there still pockets?
- Are there any new regulations that might impact the market?
- Job creation impact
- Impact of the way the press reports economic figures
- Mortgage qualification Still an issue for buyers?
- New home demand
- Industry occupancy numbers
- Oil state outlook & impact
- The next economic shock will come from
Panel Participants: Rick Sharga, Executive Vice President, Auction.com; Peter Ciganik, Managing Director, GTIS Partners
The Changing Demographics of the Housing Markets Are they Still Positive for the Single Family Rental Industry?
- Do you see any changes in demographics locally or nationally?
- What kind of demographics do you prefer to be in your resident base? High income but less likely to buy a house?
- Demographics vs. apartment industry
- Profile of the first-time homebuyer
- Senior/Millennial convergence
- Demographic imbalances and shifts and their associated opportunities
Session Chair: Peter L. Martin, Managing Director - Equity Research, JMP Securities
Panel Participants: Bruce W. McNeilage, Co-Founder & Managing Member, Kinloch Partners, LLC
Single Family Aggregation Performance as Interest Rates Rise
- The latest from the Fed
- Up rates, Up rents? Down new home ownership?
- Where will home prices go?
- Where do you expect loan rates to go?
- Impact on earnings
- What can you do to protect yourself from rising rates?
- Will rising rates change your investment behavior?
Major REO & Flip Markets 5 Markets in 45 Minutes (please pick one)
Where are the rents going? Is HPA strong in this market? Is there a lot of competition from the REITs? What are the finer points of rehab in your market? What are the supply/demand dynamics?
This discussion will focus on some of the major markets in the US and their local economies and single family rental profit potential.AZ/Phoenix; Chi/Midwest; FL/Southeast; No. Cal/Pacific NW; (plus your suggestions)
NE/Mid-Atlantic Ying Shen, Co-Head of MBS and Head of Mortgage Modeling Deutsche Bank
Southern California Roger Faulkner, CEO, RBD House Buyers
Texas Tyler Wine, Sr. Advisor American Real Estate Investments (Author/CEO of Real Deal Advisors)
Secondary & Tertiary Markets Which Ones Should be your Primary Interest?
As REITs and funds are moving on to secondary markets where residential prices have stayed relatively low even those markets are becoming a more viable investment. This session will discuss how to participate in these increasingly competitive environments and some of those markets where there are still opportunities.
- Markets with high rental house demand vis--vis supply
- Predicting rental growth in these markets
- Other economic factors to consider
- How much are you comfortable paying for a house?
- Evaluating the extra risk of secondary markets
- Cap rates you are willing to pay in secondary markets
- Exit strategy impact
Session Chair: Haendel E. St. Juste, Executive Director- Research Morgan Stanley
Panel Participants: David Buttross, Owner, Buttross Properties
Tricks of the Trade Investing in Overvalued Markets+
As the housing market recovers many markets are getting level or exceeding pre-recession valuations but you like many other things about the market and ideally would like to add to your portfolio. How should you go about it?
- Which markets are back to pre-recession highs?
- The rent vs. buy equation
- Supply vs. demand factors
- Can you still bank of HPA?
- Evaluating rental growth potential
- Impact of inflation outlook
- Local growth and job outlook
- Supply/demand factors
Panel Participants: Michael Cook, Director GTIS
Investing in Judicial States*
REO properties in July increased in 44 states, 81%, rising 472% in New York and 344% in New Jersey compared with a year earlier, RealtyTrac found. The biggest increases came in states where foreclosures are processed through the courts. Additional discussion point will include:
- How much distressed is still left in these states? Are the homes attainable?
- What kind of changes are coming down the pike?
- Already have property operations in these markets Heres what you can expect
- How do the judges lean? Consumer or homeowner? Rehab and permitting issues
Panel Participants: Doug Smith, Portfolio Manager/COO Castle Rock Commercial Acquisitions
Return Makeup HPA/Market Changes & Rent Growth
- HPA: A look at recent historical numbers
- HPA in a rising rate environment
- Market specific HPA growth
- HPA vs. Cash yield
- How much of HPA is due to rental growth?
- Primary vs. secondary market growth
- Where has HPA growth risen valuation to pre-recession levels?
- FHSA vs. Cash flow vs. HPA
- What is your favorite market for HPA growth?
As inventory continues to tighten one acquisition strategy is not nearly enough. This discussion will focus on the multitude of options you have, their pricing, relative value & brain damage necessary to navigate these waters.
- Where are you finding inventory?
- Courthouse Steps Is it still worth the time and effort?
- Trustee sale valuation
- Short sale market
- BPOs and title issues
- Unique tools and data used
- Looking for liens in all the right places
- Approaching banks as distress winds down
- MLS Can you still make $$
- HOA due diligence
- Chasing down NPLs and deeds-in-lieu
- Competition from home owners and foreign investors
Disposition Strategies Why are you Selling your Homes? What is your Long-Term Plan?
- New CFBP compliance regulations that will impact sales to Joe public
- What is the psychology of the buyer?
- Marketing secondary differences vs. primary markets
- Disposition of assets in a securitization
- Bulk vs. Dripping back into the market single asset sales
- Do you prefer in a MSA-level disposal?
- Fix & flip vs. Rental disposal
- REO & Note sales
- Defining non-core homes
- Leased vs. vacant Which way to go?
- Pricing when selling to another rental shop vs. single homebuyer
- Stabilized vs. non-stabilized assets
- Expected level of disposals per year
- What are the pitfalls from a buyers perspective?
- Why might you choose not to bid on those bulk packages?
- Pool composition, LTV etc.
- Who is active?
- What do the deals look like?
- What are they selling at?
- What are the pre-requirements?
- What are the pitfalls of playing in this market?
- M&A in the REIT/multifamily sector
- Is there a portfolio discount or premium associated with portfolio acquisitions?
- What motivates sellers today? Diversification? Entry into New markets? Full value?
- Major drivers and benefits?
- Have overhead savings been realized?
- Major constraints/risks
- What kinds of structures make sense?
- What returns are necessary for a deal to make sense?
- Is there a scale premium?
- Leased up vs. vacant home
- Who are/will be the consolidators? The sellers?
- When to use the upREIT structure?
- Tax issues/capital gains vs. individual sale
Session Chair: Dave Bragg, Managing Director Green Street Advisors
Bulk Buying/Portfolio Sales
- What is your company strategy as it relates to buying in bulk? Mid-to-long term yield vs. fix and flip?
- Cant walk 500 houses
- Amount of deals, their structure and pricing vs. 2 years ago Is REO or NPL more readily available in packages?
- Your bidding strategy-Is it tied to expected returns?
- Government agencies releases and pricing?
- What types of auction process do you prefer?
- Private vs. public sales
- How do you evaluate every property
- Tricks of the trade
- What limitations on seller policies & procedures are you not comfortable with?
- Old & emerging sources
- When you sell a portfolio does it come with the local back of the house?
Acquisition/Disposition Shark Tank
At our Fall 2015 meeting we had a panel that focused on small and mid-sized firms selling their portfolios to the big guys Now much of the market headlines are on now on large investor disposals. This shark tank will focus on investors of all sizes buying and selling portfolios.
The Tank Leader
Will evaluate the following projects to see if they are interested, the deal structure and how much they will pay
Dan Magder, Managing Director Rock Creek Capital Group
Will present the following portfolios for sale
C. Jay Byce, Consultant American Residential Properties, Inc.
Erik Cribbs, Senior Program Advisor U.S. Dept. of Housing and Urban Development
Fix & Flip; Large Portfolio of Rental Homes; New Development of Rental Homes; Small Portfolio of Rental Homes
Valuation What is Behind the Black Box?
- Appraised value vs. sale/ purchase price
- AVM and other technology What is useful?
- Bulk purchase valuation
- Comps and BPOs in a rising market
- Role of vacancy rates, expenses and cash flow
- Potential pitfalls
- Replacement cost value as a benchmark
- Seasonal issues
- How does your valuation process and modeling differ than a year or two ago?
- Entity valuation tricks of the trade in the single family rental space
- Valuation disaster stories
Finance vs. Own How should you Play in the SFR Market?
- Risks and risk-adjusted returns
- Market characteristics impact
- Control issues
- Managing member and LP positions
- Equity vs. fixed income financing
- Market exit strategies
- Macroeconomic factors
- When it hits the fan
Panel Participants: John Earl, Managing Partner Keystone National Group, LLC; Mathew Owens, President OCG Properties, LLC
Exit Strategies for Entities with Less than 100 Homes
- Should you know you exit plan upfront?
- Merger vs. being absorbed vs. partnership Which way should you go?
- Individual for-sale vs. wholesale/another investor vs. portfolio sale
- Exiting to the homeowner
- What to do if one of your investors wants to exit?
Business Model/Strategy Change, Alternative Entity Structures
- Going to luxury or section 8
- Allocator to operator; Property manager to aggregator
- Are you now disposing properties?
- Investment joint ventures
- Unit acquirer to portfolio maintenance
- Fix and flip to rental
- Working for the aggregator?
- Financing vs. owning properties
- Moving on up Going to a new market
Getting to 50 or 100 Flips a Year
(small group meeting, open to investors and fix and flippers only)
- Where are you going to get the $$? How much does it cost?
- ROI vs. volume Which way to go?
- What kind of back office infrastructure do you need to get to this level?
- What are the best processes to manage the rehab, both materials and labor.
- Competing in your local market with the aggregators? Can the lower margins be offset by higher volume?
- How big does you market need to be to get to 50 homes? To 100 homes? Do you need to expand your geographic horizons or sweet spot?
- High end flips high amount of profits or high amount of risks?
- What corporate infrastructure needed
- What are the best insurance programs for the fix & flip industry
Panel Participants: John Helmick, CEO Gorilla Capital
Large/Mid-Sized Fund Panel
- Relative value vs. other real estate investments
- Wheres you exit? How much appreciation?
- Small market HPA challenges
- End of fund life What are your choices
- Selling stabilized Are you looking to buy opportunistic?
- Are you deploying the sale proceeds to this or another sector?
Panel Participants: Tom Shapiro, President & CIO GTIS Partners; John Keeton, Partner Morningside Funding LLC
Public/Private REIT Operating Company C-Level Discussion Whats Next?
- What would be the factors of a market that would make you take gains?
- Are you looking to rebalance your portfolios?
- How are you battling margin compression?
- Are stock trading fairly?
- Consolidation & rollups In what scenario do you see them happening?
- Are you finding economies of scale? Where?
- How to realize HPA What are you doing about it?
- Rent growth and the turn As expected?
- How are you thinking about branding?
- What are you finding out on the customer service side that surprises you?
- Dealing with media stuff
- What will stabilized returns look like?
- Internally managed real estate trusts can increase NOI by outsourcing property management services vs. the control of internal management
- As private equity $$ get less expensive then public
Panel Participants: David Singelyn, CEO American Homes for Rent; Dallas Tanner, Chief Investment Officer Invitation Homes; David Miller, Chief Executive Officer, President and Director Silver
Bay Realty Trust; Doug Brien, CEO Starwood Waypoint Residential Trust
Rise of the Super Regional SFR Institutions- C-Level Discussion
- What is your secret sauce?
- Capital availability
- Outsourcing vs. in-house
- Geography vs. product
- Are you considering notes?
- Do you have a unique niche? How are you competing with/buying from the big REITs?
- When is it time to cash out in a market?
Session Chair: Rick Sharga, Executive Vice President Auction.com
Panel Participants: John Halasz, Senior Managing Director ConRex; Ed Renwick, CEO Raineth Housing
New Funds (small group meeting, rental investors and flippers only)
You have done the friends and family fundraise and want to take it up to the next notch. Was your initial fundraise less than a smashing success? This discussion with other up-and-coming and
first-time funds will discuss real life experiences and the harsh realities of what is needed to succeed on an institutional-level
Panel Participants: Joel G. Block, Chief Deal Maker Bullseye Capital
Flip vs. Hold
- What are the key decision points when considering the two strategies?
- Bought a fix & flip property for your rental portfolio what are your choices
- When do you make the decision to hold or flip a given opportunity?
- Do you use the same financing source for both?
- How do you think about the proper mix of flips and holds in your business model?
- What types of markets are best for each strategy?
- Business model evolution How has your business evolved to be more or less of each strategy?
- Deal economics - what metrics are you using to gauge your purchases?
- Strategies for combating low appraisals to get the most possible
- Is flipping an effective solution for unoccupied rentals?
- Role of house price
Entering a New Market What is your Strategy?
So many institutions have entered your market making prices high and supply scarce. Youve come to the conclusion that your local market has ran its course and now you have to consider looking for greener pastures. The discussion will focus on choosing the market and the best ways to hit the ground running
- Advantages and disadvantages of leaving
- Making the local connections and building your team
- What you can learn by driving the market
- Are active investors in the market forthcoming with information?
- Partnering Buyer beware
- The data side
- What you can learn from the MLS
Entity Structure Public vs. Private REIT vs. Fund
- Which type of entity is attracting the most funds?
- Where is funding currently the cheapest
- The Dow is at a historic high Is it a good time for the IPO exit? Take private deals?
- The REIT structure
- Do you want to be beholden to the Wall Street analyst?
- Are certain assets better to have in non-fund structures?
Panel Participants: James Graff, Co-Head of Real Estate Investment Banking Raymond James & Associates
Foreign Buyers & Fundraising
- Who are the newest international players? What are their market preferences?
- Whos interest in waning?
- What are the geopolitical considerations of the markets that are interested in US real estate and particularly for-rental properties?
- Home buyers vs. fundraisers
- Do you need to go through agents to access?
- Dealing with Patriot laws, non-US banks and wire transfers
- Can EB-5 work for the single family rental market?
Panel Participants: Eli Shaashua, Managing Director Red Granite Capital; Ryan McFarland, Chief Operations Officer Your Wealth Education
First Time Working with an Aggregators (small group meeting, open to all investors and fix and flippers)
Congratulations. Youve landed a game changing contract. Now what. As per the Hitchhikers Guide to the Galaxy the first step is Dont Panic. The next steps that will be taken will be discussed in this small group meeting including:
- Reporting and spreadsheets
- The cultural shock
- Benchmark bogeys
- Typical agreements and negotiations
Joint Ventures Working for/with the Aggregator Including Acquisitions & Property Management Evaluating the Difficulties and the Benefits
- Aggregators Are they looking to self-manage or outsource?
- What are the fees associated?
- Skin in the game Joint venture structures and waterfalls
- The single family rental take on money partner/operating partner structures and waterfall
- Servicers and property managers as $$ partners
- Joint ventures for buying, property management, rehab and other services
Getting to 50 or 100 Houses in your Rental Portfolio (small group meeting, open to investors and fix and flippers only)
Your little side investment is now becoming too big to handle, even after quitting your full time job. Now that you are all in what are the steps you need to take to increase your growth and profits?
Notes 201 Workshop (small group meeting)
Is the decrease in REO inventory making it more difficult to find investment properties for your portfolio? Have you looked into notes but still have some questions before you take the plunge? This Notes 201 session, focusing on the key investment, operational and risk issues, will assist you in taking the next step in adding the note business to your real estate investment portfolio.
It started out as a distressed play, buying up uncompleted and distressed new developments and renting them out. That opportunity seems to be ancient history but has sowed the seeds for developments to be built just for the purpose of rental. This session will discuss:
- How can you get the cost at the right level to make this work?
- Performance of the 1.0 distressed build-to-rent plays
- Partnering with the homebuilders
- How long do you need to hold the properties to make the economics work?
- Operational cost vs. traditional aggregation properties *
- Home description
- Lot prices are increasing When are they too expensive? *
- How much of a premium are new homes to renters?
- Can you have an entire rental subdivision? Do you cap the amount?
- Do you get more rent for new homes? How much less do you pay in maintenance?
- Tax district control
- Is the viability market specific?
Find, Finance, Fix, Flip How are you Keeping the Lights on as Margins Decrease?(1-2a)
- Finding fix & flip vs. rental portfolio properties
- Flipping in non-distressed markets
- Pricing in this ultra-competitive market
- What are the market characteristics you like to play in? What kind of markets wont you play in?
- The finance side
- Rehab: What are you comfortable doing & associated tricks of the trade
- Exit strategies
- Luxury flips
- Working for others
Session Chair: Josh Stech, Vice President Lending Home*
Panel Participants: Jim Zaspel, Founder EZ Homes; Mark Filler, CEO Jordan Capital Finance, LLC
- What a lease with purchase option is and how it is being utilized? Title, tax and insurance responsibility, and maintenance of the property
- Court views on eviction
- Financing for this market
- Drafting the documentation What you need to look out for
- Pre-purchase and own vs. lease provisions
- How do investors look at this product? Renter/customer
- Key regulatory issues and legal pitfalls to be aware of on federal/state/county levels... Judicial or non-judicial states?
- Structuring the leasing contract and the option contract
- How do you market lease to own option leases
- Tenant profile and Geographical/demographic/economic preferences/terms for leasing with a purchase option?
- Tenant drivers
- Salability to other investors
Panel Participants: Todd Konkel, Partner Morningside Funding LLC
Securitized Debt Investor Plenary
- What are the most important factors in deal evaluation?
- Relative value vs. other real estate and asset-backed debt investments
- Pool performance
- How do you look at surveillance?
- Do you like the new multi-borrower deals?
- Are spreads tightening and liquidity improving as the market sees more deals?
- Lessons for new investors
Panel Participants: Randy Robertson, Managing Director BlackRock; Ron Mass, Managing Principal Altimas Capital
Investing & Financing Non-Traditional Single Family Rental Assets
As inventory continues become tighter and more expensive you must look at new sources of inventory to feed the machine and maximize profits. Some of the non-standard assets and their opportunities that will be explored will include:
- HOAs, government, tax liens and code violations-Evaluating lien markets, priority order and other market-specific issues
- Shared appreciation products
- Infill properties
- Townhouses and condos
- Luxury market flips
- Mobile home parks and manufactured housing
- Section 8 and low income housing
- 2 bedrooms? 5 bedrooms? Large and small house strategies
- Can 4-family houses work?
Panel Participants: Kelly Herbert, Managing Director National Real Tax Tracking; Bruce Bartlett, Managing Partner Sequoia Real Estate Partners
Buying Notes As the Supply of REO Tapers Down How Can you Still make $$?
- Getting a loan to re-perform
- NPL/REO conversion best practices
- Loan servicing
- Loan modifications
- Cash for keys Is it effective?
- Joint venture structures
- Value of re-performers vs. 90-day delinquent
- Rehabbing the tenant
- Dodd-Frank impact on servicing
- Are you finding cheaper sources of capital to make the numbers work?
- Are you banking on HPA?
Panel Participants: Tim Siebelink, CEO Capital Financial Resources
Financing Using a Securitized vs. Non-Securitized Lender Is it all about the Rate?
- Which non-rate terms are critical?
- How will the multi-borrow deals be changing the market?
- Documentation differences and rating agency requirements
- Financing alternative products like build-to-rent, lease purchase and notes
- 3rd-Tier markets
Borrower Panel What is your Strategy? Your Leverage Use?
- Taking on debt vs equity for their projects?
- What does your capital stack look like?
- What do you value most? leverage, prepayment, recourse, term, consolidation/portfolio loan, diversification? What are you willing to pay up for?
- Using a capital markets vs. balance sheet lender; Large vs. small/community lender
- What is the biggest surprise/resistance/headache youve experienced with lenders?
- Appraisal/BPO values
- What should lenders be focused on that theyre completely missing? Identifying the thorniest negotiating points?
- Cash management requirements
- Leverage Use: What is your Strategy?
- As values are rising is leverage a less risky play?
- SFR is a growth business Leverage expectations when in growth mode
Attracting Long-Term Institutional $$ from the US & Abroad
- Is the pension market coming on board?
- How receptive are institutional investors to the story?
- Vs. family and friend financing
- Tapping the RIA/Financial advisor/High net worth investor market
- Foreign investors coming into the market What are they looking for?
Crowdfunding 101 (small group discussion, owners/flipper only)
This new method of fundraising has proven a great way to fundraise in the SFR market. Hear about How it works, How your get started, How much can I raise, How long does it take, What services a crowdfunder provides as well as Legal and Financing basics
Panel Participants: Nav Athwal, Founder & CEO RealtyShares
- Rocking out to Reg A What does it mean to the market? Evaluating the expansion of & economic factors behind the growth of crowdfunding
- Managing risks, Including fraud
- The future of crowdfunding how scalable?
- Fee structures
- Raising funds for institutional-Quality projects
- Behind the plumbing who is funding the crowdfunders?
- SEC/FINRA broker dealer & selling regulations
- Regulations & fundraising to unaccredited investors
- Workout & cash shortfalls involving crowdfunding portals & projects
- Routes to market
- Comparing the major platforms
- After the Fundraise through exit
- How much interface with customers is really necessary?
- Borrow $$ vs. equity
- Blind pool or fund fundraising
- Marketing to high net worth, family offices, RIAs & Self Directed IRAs
- Monetizing your portfolio using crowdfunding
Panel Participants: Anand Kajaine, President Kajaine Capital
Financing a Single Home for Flip or your Rental Portfolio (1-2am)
- How can you make $$ on a 60k loan?
- Financing options evolution
- What are the most important characteristics of a good fix & flip lender?
- How have online lending platforms changed the financing landscape? What do you see as the pros and cons of online lending platforms?
- What are some of the most aggressive or creative loan programs youre seeing today
- Cash buy vs. financing
- Market competition What is it doing to rates?
Panel Participants: Josh Stech, Founding Partner LendingHome*; Damon A. Riehl, Head of Commercial Lending Operations Ocwen Mortgage Services, Inc.
- Raising fund vs using a lender?
- Equity capital-How does it look?
- Breaking into the family office market
- How competitive is it fundraising in this space? How can you differentiate yourself?
- The latest time frame for raising $$
- Comparing funds with other
- Discipline vs. temptation How much $$ should you raise?
- Is it important to register with the SEC?
Long Term Financing (2am)
- Financing notes vs. rentals
- Freeing up $$ from your rental portfolio
- Cash management requirements
- With many markets at full valuation is lending riskier now in these markets? What are you doing about it?
- Which terms are negotiable if you really want the deal?
- Common closing issues that keep coming up
- Underwriting guidelines
- The 30 year and other new products
Session Chair: Stephen Blevit, Partner Sidley Austin LLP*
Panel Participants: Howard Steinberg, Managing Member PBFS Group
- Evaluating the new multi-borrower structure
- Inter-rating agency differences in evaluating single vs. multi-borrow deals
- How is an SFR securitization different than a conventional 144a deal?
- What are the key differences in the multi-borrower transactions that have been marketed and priced? Is this the future of the market?
- Could these loans go into a shelf, into a public deal?
- Risk retention rules issues
- Evaluating small/mid-sized loans
- Will Fannie and Freddie get into the space
- Lease, entity and title issues
- Dodd-Frank impact on servicing
- Refi risk
Shark Tank Financing
The Financiers: Will evaluate the following projects for financing
The Property Owners: Will present the following portfolios that need financing
> Size Large Pool of Homes; Small Pool of homes
> Portfolio purpose: Fix & Flip; Rental
Bridge Financing: Where are Prices and Terms Heading?
* Bridge vs. subscription lines
* Hard money vs. private lenders
* Do you see any large changes or substantial disruptions in the market coming?
* When you underwrite, what's more important, the property or the borrower? LTC vs. LTV
* Competing with cheaper, money banks and smaller local firms with the relationships
* Online and peer to peer lender impact?
Panel Participants: Doug Cochrane, Senior Vice President of Underwriting Patch of Land
Raising Ancillary Revenue from Tenants & Institutions How much can you make? +
- Cable and internet
- Yard and pool maintenance
- Are you figuring in ancillary revenue potential in your acquisition evaluation?
- Solar How can you make $$? How much does it cost?
- Insurance products
- Tracking tenant behavior
- How much can you save in transaction costs by creating your own brokerage?
- Local market knowledge Using your property management and acquisition expertise to provide services for others
- Should you wait to improve your property operation efficiency before you try to add on ancillary revenue?
Panel Participants: David Roberts, Vice President JB Lloyd & Associates; Marco A. Vartanian, Senior Vice President-Property Management Starwood Waypoint Residential
Industry Performance Metrics, Operating Metrics, Expense Ratios & Benchmarks -A discussion on what should be the Industry Standards+ (small group discussion)
This small group discussion will focus on what benchmarks and standards should be used by the industry and how those benchmarks should be determined
- Revenue as a % of purchase
- ROI for asset class
- Performance standards and metrics
- Expenses measurement
- FFO vs. Core FFO
- Measuring occupancy, turn and other related customer measures
- Cash flow coverage and same property performance
- Market-level metrics
- From REO to leased
- Which efficiencies you can carry over from the multifamily world
Managing the Rehab for Fix & Flips+
* How much should you spend?
* What can you do if you realize that the rehab is much more extensive then you originally planned?
* Licensed contractor vs. do it yourself
* Complex construction projects - best practices around up front due diligence, finding the right contractor, and monitoring progress and budget
* When contractors go bad
* The science of scheduling to quicken the turn
Panel Participants: Carl Dean, Managing Director American Real Estate Investments; Matt Fulton, Chairman Market Ready; Rob Helmick, President Real Estate Solutions Realty Sam Tucci, Business Development US Best
Rehab, Technology & Non-Technology Upgrades & Maintenance for your Rental Portfolio Properties+
- Different climate; different issues
- Managing material cost
- Keeping in-house What Kind of volume do you need to do?
- Minimizing rehab costs on every turn?
- Quantifying and predicting maintenance
- Technology tools
- Pre- vs. Post-paint and which trades can co-exist
- Section 8 rehabs
- Health/safety issues priority
- Impact on underwriting
- Violation management
- Security, energy management and smart home systems
Panel Participants: Martin Stout, President Go Roof Tune Up; Greg Burge, President Point Central; Ken Davis, CEO TaskEasy
Accounting & Financial Reporting+
- Policy choices for SFR
- What kind of technology is available? What are some of the limitations?
- Rehab capitalize or expense?
- Challenges when going public to private
- Reversing an impairment
- Accounting for flippers vs. buy & hold
- Accounting for business combinations and joint ventures
Panel Participants: Steve Dorsett, CFO Castle Rock Commercial Acquisitions
Underwriting Pitfalls & Unexpected Market Problems
- Prevention strategies
- Is there such a thing as an effective drive by inspection?
- What to look for when dealing with HOAs
- Potential lien and title issues
- Abandon vs. occupied properties
- Curing problematic problems
Property Manager Selection
- What do you first look for when hiring a property manager? Are licenses important?
- What kind of technology, communication tools and response times should you look for?
- Non-Management, ancillary criteria, that you consider when selecting a firm
- What you look form in terms of staff expertise? Local knowledge? How do you verify?
- National vs local/regional firms, what are the primary criteria?
- What are some of the things you see that tip you off that a property manager might not be the best one to choose?
- Selection process- How many candidates to you typically interview before selecting a manager?
- Fees and costs
- Who hold escrow funds? Management agreements Is there anything that you see buried in
- Breaking up is hard to do How do you break up with a property manager?
- Evaluating if a local vendor can go national
- Capital gains vs. ordinary income
- 1031 exchanges Can you use in this market?
- Flip vs. sit vacant or rent for a year
- Depreciation of losses
- IRA strategies & donations
- Gain vs. loss timing
- What kind of tax credits are available?
- What is expenseable?
- Energy credits
- Property tax abatements and appeals
Building your Property Management Team vs. Outsourcing
- What services do you typically refer to a property manager? What should you handle in house?
- Expenses of both approaches as a % of total revenue
- Evaluating your expertise
- Control issues
- Using a big national vs. small local firm
- Expertise you look for in a hire or company
- Ancillary revenue How is it handled?
- Management of MSA-specific vs. scattered
- Exiting your agreement
- Technology must haves
- Customer service
Panel Participants: Yanir Ram, Chief Financial Officer DRI Holdings; Justin Allen, Field Director-National Appfolio
Minimizing & Managing the Rental Turn
- Insuring your tenant stays longer
- How do you approach tenants you want to stay? The opposite?
- Special issues for Section 8 housing
- Cost management & modeling
- Expected delinquency level
- Keeping rehab turn costs down
- Minimizing rental commission costs
- How do you determine rental increases while not losing the tenant?
Panel Participants: a representative from the Law Offices of Kimball, Tirey & St. John LLP
Plus ..Luncheon Featuring Optional Geography Based Roundtables
Arizona, Chicago/Midwest, Florida/Southeast, Northeast, Northern California/Pacific NW; Southern Cal, Texas, plus your suggestions)
Note Buyers & Bond Investors will also have their own tables!
You will have the opportunity to lunch with those involved with or investing in the above markets. Registration will be the morning of day 1.