The economy in the USA and around the world has experienced some serious problems in recent years with some investments becoming problematic. However, as our parents have a said and their parents before them and not to mention financial experts, one type of investment that is always a wise investment is property.
Although real estate is a wise investment, mistakes are still made. So, we decided to talk to Marie Hamling, President of Paradigm Real Estate Corp about real estate investment and how to avoid mistakes.
1. Why did you launch your new real estate management and consulting firm in Southwest Florida?
Geographically, because this is where I live and I love this area. The population continues to increase here, which leads to an increase in residential and commercial properties that require management. Fundamentally, the reason I launched the firm is because I want to help more investors realize the potential of their assets and train real estate managers to do the same. Those investors don’t have to be in the Southwest Florida locale, they can be anywhere in the country or the world and I can still help them. I think there is a larger need for better real estate management than many realize and there are investors who agree. They make mistakes in hiring managers or management companies and I want to change those mistakes.
2. What do you think the #1 mistake investors make when hiring a property manager?
If they are hiring a property manager, that is who they are probably going to get. The mistake is the investor doesn’t understand the difference between property management and asset management. These are 2 completely separate jobs. An investor looks for a property manager, expecting him to help the investor make money. A property manager, however, focuses on maintaining the asset to preserve its value while generating income. An asset manager would focus on the financial return to the investor and the value of the asset. For more information, I have written an article, Property Management vs. Asset Management, which can be found on my website and is free to anyone who wishes to read it.
3. How can investors keep from making this mistake?
An investor owns property for one reason – as a financial investment. This usually means the investor wants to make as much on his investment as possible. If investors want the property managed and want returns maximized and property value increased, they need a property manager and an asset manager. Very rarely does an investor find a property manager and asset manager in the same person. If this is desired, the investor is going to have to diligently look for that person or talk to me.
4. How does an investor go about finding the right people to manage his real estate?
That question leads into what I believe is the #2 mistake investors make. They don’t have the right people on board. People are the most important asset of a company. They are the ones who represent ownership and management and they are the ambassadors for the investor’s asset. The manager or management firm has to understand this and embrace it. In my opinion, the right people must have a basic operating attitude and appropriate experience and knowledge. And they must be willing to take action, continually learn and adapt to change.
5. How would you define the basic operating attitude for real estate management?
Treat clients and customers honestly and professionally. Show respect and empathy. Be responsive and positive. And always smile!
Real estate management is a service business. We have an obligation to make sure the service we provide satisfies our clients and customers and meets their needs. To me, that requires a positive, caring attitude. Investors and real estate managers alike make the mistake of forgetting this. Without customers, there is no business.
6. What else do you think an investor should consider when searching for a management firm?
Quite honestly, I think she should first ask, “Why do I not have my own management company to manage my assets?” Why give all that compensation in management fees to someone else? If an investor wants no part of management, there are still ways to have a company, let someone else do all the work, and still make a little extra from it.
But if an investor definitely wants to hire a third party firm, then I will be glad to take the business.
7. What would you to do for an investor if you managed the property?
My specialty is the turn-around of inferior or poorly performing assets. For those types of properties and for successful assets as well, I would analyze the financial condition and the market of the asset and implement an appropriate budget. With that information, margins would be improved by charging the appropriate fees, streamlining operations and reducing costs. I would make sure the staff consisted of the right people. Simply, I would improve the return on investment and enhance the value of the real estate asset, which is what I believe the investor wants.
8. What type of property do you manage?
I have managed single-family residential, small and large apartment communities, offices, executive hotel suites, retail businesses, self-storage facilities, manufactured home communities, RV resorts and community and homeowners associations. You’ll find asset managers often have mixed use portfolios, thus my expertise is quite diverse. My purpose, as should be any real estate manager’s, is to meet the goals and objectives of the client, no matter the type of property they have. I have done that and clients have benefitted monetarily.
9. Do you make any promises to the investors you work with?
I provide thoughtful, common sense service that is responsive, professional, competent, personalized and caring. If I fail to deliver on any of the 6 guarantees found on my website, I will pay the investor $100 for wasting his time and another $100 to any charity of his choice.
Additionally, I offer month-to-month agreements if an investor enters into a management contract with my firm. Why stay together if one of the parties doesn’t want to be in business together anymore?
10. Any final thoughts you would like to give an investor?
I would say,
“I want to introduce my firm to you. In order to do that, I will provide a Free Strategy Session to you while I still have time to do so. You have nothing to lose and much to gain.”
For more information on how to improve real estate investments, please visit the Paradigm Real Estate Corp website: http://www.paradigmrec.com/
About Paradigm Real Estate Corp
Management and consulting services are offered not only to the local area, but to real estate owners across the country. Marie can be hired on a consulting and/or training basis from one day up to months at a time. Or through the firm, she can provide partial to full property and asset management services.
Company Name: Paradigm Real Estate Corp
Contact Person: Marie Hamling, President
Address:17595 S Tamiami Trail, Suite 214
City: Fort Myers
Country: United States