Asset management has always been a vital component of multifamily, and in light of the current crisis, it has gained even more importance. Property owners have to maintain a balance between keeping everyone from their tenants to their employees safe, while still running their business effectively. Today’s guest, Mike Butler, joins us to share some multifamily asset management tips for these unprecedented times. In this episode, Mike begins by talking about his journey and reassures us that even if you start in single-family, those skills transfer well to syndication.
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In addition to multifamily asset management tips, we also discuss some of the ways that Mike is currently communicating with his tenants and investors. Constant communication is always important, but in these uncertain times, it’s crucial. Both tenants and investors alike need to know that you care about them, and you’re willing to do whatever it takes to keep them safe. If people feel out of the loop, it will only increase their fear and anxiety. Mike also touches on how to communicate with lenders, the importance of having sufficient reserves, and underwriting changes his team has made during this time. Be sure to tune in today!
Key Points From This Episode:
- Find out more about Mike’s background and how he got started in multifamily.
- Why experience you have in single-family is transferable to multifamily asset management.
- Learn why frequent communication has become so important during the COVID crisis.
- How Mike is communicating with his tenants and what he’s doing to cater to their needs.
- The importance of communicating with lenders and what you can ask for during this time.
- Mike’s preparation for the upcoming months, of May, June, and July.
- Some of the ways that Mike is keeping abreast of current changes in the market.
- The government relief program Mike has made use of.
- Underwriting changes Mike and his teams have made to plan for the next 12 months.
- The importance of having enough reserves and balancing investor returns.
- A recent business improvement, finding investors, and how Mike likes to give back.
[bctt tweet=”Hopefully everyone will glean from this as how interconnected our economy is and how it affects our lives. — Mike Butler” username=”whitney_sewell”]
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About Mike Butler
With almost 25 years of real estate investing, Mike Butler has been investing in real estate at various levels since purchasing his first property, a duplex, in 1994. Since then, he remained very active in real estate investing through the acquisition and sale of single-family rentals and fix and flip residential homes from 1994 until 2010. During his time as a landlord, maintenance, and property manager, gaining invaluable experience dealing with all the “real world” challenges of owning and managing rental properties and has given him a great foundation of investment fundamentals as he successfully grows his company in the multifamily space. In 2018 Mike successfully added Lexington Park Apartments to his portfolio. Lexington Park is a 62-unit garden-style asset situated on 15 acres in Lexington, NC (Winston-Salem MSA) with a purchase price of $3.2 Million. This excellent value-add opportunity has been steadily providing an 8% annualized return on cashflow and a projected 18% IRR for his investors since the first quarter of ownership and self-management. Mike graduated from Eastern University with a Master’s degree in Business Administration and has successfully completed the requirements for his real estate license from Temple University Real Estate Institute.
Explore our conversation on multifamily asset management tips, communication and more:
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