They say that no news is good news, but during a time of crisis, this is most certainly not the case. Without information, the human mind tends toward the worst-case scenario. This is why today’s guest, Andrew Cushman of Vantage Point Acquisitions, is a firm believer that consistent, reliable communication with all stakeholders during this current crisis is the necessary response from operators. We begin the episode with Andrew shedding light on some of the crisis-mitigation strategies that they have used.
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From proactively gathering information and reaching out to tenants, lenders, and vendors, they have left no stone unturned. From there, we turn our attention to some cost-cutting measures Vantage Point has put in place. While they have opted to retain all of their staff, they have done some repurposing and shuffling around to ensure that all their bases are covered and at the same time, ensuring their employees’ job security. Then, Andrew shares why they thought it was prudent to withhold investor distributions for the time being. Not only will it help with cash reserves, but it also ensures that the company’s future forbearance candidacy remains open. We round the show off with Andrew sharing how he’ll apply the lessons from the current crisis, what these times are doing for the digital transformation of real estate, and the power of persistence. Andrew was a great guest who we learned so much from. Be sure to tune in today!
Key Points From This Episode:
- Learn about Andrew’s background and what he’s been up to since his last time on the show.
- Some of the innovative ways that Andrew and his company prepared for the current crisis.
- What April rent collections were like and how Andrew sees the next few months going.
- How Andrew and his team are prepared for the long-term damaging effects of the crisis.
- Why it’s important to communicate with your investors more than usual during this time.
- Find out some cost-cutting measures Vantage Point has implemented.
- Why Andrew believes that cutting back property management staff is a mistake.
- Tips on approaching vendors to help with getting discounts or temporary concessions.
- What Vantage Point is doing to work with and accommodate its residents.
- The weekly conference calls Andrew holds with the full property management team.
- Why Vantage Point decided early on not to issue investor distributions.
- The lessons Andrew’s learned from COVID-19 and how he’ll apply them going forward.
- How Vantage Point calculates their operating and capital reserves.
- A recent business change, the biggest contributor to Andrew’s success, and giving back.
[bctt tweet=”The human mind, in the absence of knowledge or the absence of communication, always fills the gap with the worst-case scenario. — Andrew Cushman” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Andrew Cushman
Andrew Cushman has a BS in Chemical Engineering from Texas A&M University. After graduation, Andrew worked for a large food company for 7 years in a variety of supervisory positions. During that time, Andrew (joined by his wife in 2004) experimented with a variety of businesses in the hopes of making the jump from W-2 employee to entrepreneur. In 2007 Andrew discovered house flipping and left his corporate position to start a business in real estate investment. Starting off with single-family properties in the depths of the recession, Andrew completed 24 single family flips (purchase, rehab, sell), all of which were very profitable. In 2011 Andrew transitioned to the acquisition and repositioning of multifamily properties, acquiring a mostly vacant 92-unit property on the other side of the country as a first deal. That first property was eventually sold for several times its original purchase price, and Andrew now acquires B Class, Value-add properties throughout the Southeast. In total, Andrew and his team have acquired and re-positioned 1,796 multifamily units to date. Outside of the business world, Andrew has been a certified alpine ski instructor and when not working in real estate enjoys surfing, backcountry skiing, and time with his family. Andrew is married with two children and resides in Southern California.
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