The topics highlighted in this episode are underwriting and property management. Our guest, Neil Bertrand, has overseen acquisitions, due diligence, operations, renovation, new construction, and lease-up of various assets in Texas, Arizona, New Mexico, Oklahoma, Louisiana, Arkansas, Missouri, and North Carolina. He is also a graduate of a Bachelor of Science degree in Real Estate.
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Neil believes that the success of a property highly depends on the underwriting. He shares two types of underwriting models that would help a passive investor analyze the underwriter well and dives into details about how to stress-test a deal. Neil touches upon two kinds of asset management firms and gives tips on choosing the right one. There’s a lot to glean from this episode! Listen in!
Key Points From This Episode:
- Neil earned his Bachelor of Science Degree in Real Estate from Liberty University.
- He has been in various roles in this industry – asset management, VP of Acquisitions, worked in development, conventional, senior, etc.
- For Neil, the most important thing that determines the success of a property is underwriting.
- What are the first two or three things that Neil looks for that tell him a lot about the underwriter?
- Your IRR or cash-on-cash mean nothing. The question is: Can the property sustain itself when the markets turn or something happens?
- How does he combat property tax and insurance price costs?
- Neil explains two types of asset management firms – those specializing in a particular asset class and those managing all the asset classes.
- If you’re thinking of getting an asset manager, find out first if that firm is an expert on your asset class.
- Asset managers have to be local area experts and experts in the asset class.
- One tip for analyzing an asset manager is to visit their Facebook page and look at how they interact and handle reputation management.
- When is it time for a syndication to take property management in-house?
“There’s so many different avenues in real estate. You want a career, there’s acquisitions, there’s asset management, property management, there’s the lending side, there’s just so many different avenues to pursue.” [0:02:17]
“I think probably the most important thing that determines the success of a property is the underwriting, it’s not really overlooked; there’s two types of underwriters and two types of underwriting models, the ones that are built for speed. So you can go through as many deals as possible, kind of like a back-of-the-napkin approach, and then there are the underwriting models that take about an hour and a half to complete all the data entry and then start tweaking the numbers.” [0:03:33]
“We are not going to guinea pig that person’s asset in a market where we don’t have relationships, we don’t have knowledge of the market.” [0:17:45]
“One thing I learned from my mentor was any time there’s an economic downturn or pandemic, there’s always an opportunity for people who have the capital and are ready to move forward with it.” [0:25:24]
Links Mentioned in Today’s Episode:
About Neil Bertrand
Neil began his multifamily firm in 1998 and has worked for 4 NMHC Top 50 firms, representing both large wall street investors such as AIG/SunAmerica and Hudson Advisors, as well as private individual investors.
Over the course of his 22 plus year career, Neil has worked across all areas of multifamily as a VP of Operations, VP of Asset Management, and VP of Acquisitions, overseeing the acquisition, due diligence, operations, renovation, new construction, and lease-up of various assets in Texas, Arizona, New Mexico, Oklahoma, Louisiana, Arkansas, Missouri, and North Carolina.
Neil is a Certified Apartment Portfolio Supervisor (CAPS®) through the National Apartment Association and an Accredited Residential Manager (ARM®) and Certified Property Manager (CPM®) Candidate through the Institute of Real Estate Management. He earned his Bachelor of Science Degree in Real Estate from Liberty University.
Neil is a General Partner in 431-units located in Texas and New Mexico. He has been a featured guest on several multifamily podcasts, a frequent panelist for the Texas Multifamily Mastermind, a guest on Propelio TV real estate investing show, and presented seminars on time management at universities and apartment association events.
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