Real Estate Empire Built With...
Abstract: Mark Sanders, CEO of Fifteen Group, talks of the humble, cash-strapped, startup of his real estate empire in 1992 that jumped immediatly into the big deals. Their first purchase was a deal comprising of four complexes, 1520 units for $58 Million. Between 1996 and 1998 they purchased 18,000 rental units. His company, 12 year later, is now comprised of 14,700+ rental units and a full management company with revenues of $100 Million per year.
He talks of his philosophies regarding propery aquision and management, as well as the growing pains, mistakes, and tough times that inevidibly were encountered.
The full text of this article can be read
here at multifamilyexecutive.com
Written by Miriam Lupkin
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Their performance here in Calif. was very poor and showd a total lack of ability to perform in project type properties. The ability of management to recognize the problems was unbelievable. Most of the Huddys and others were of the opinion that they had never worked with problems like this before. The 18th Streeters walked all over them said it was their turf. Exclusive.dealing rights etc. etc.
Here was a classic opportunity to make a nice profit by turning it into corporate ownership and then have the tenants buy in and own the building themselves and at the end leave a building loaded with pride of ownership and with the tenants now the owners and a hell of a profit paper and cash in their pocket as they made a graceful exit back to the area of their origination. Florida. Great chance totaly bombed. The big problem was that management talked when it should have listened.
Their quickness to evict was evident. Proper management could have set up a way to cover late payments and with a profit and a workout of the pay problems by proper intervention with the tenant. This has a fringe benefit, the tenants are now on your side and become helpful and supportive. Ah well, you can only learn these solutions by being on property and involved. Statistics are not always the answer. Little charts and business buzz words do not always work.
You either like people, work with them or you don't this outfit did not. The article is a rosy picture all fleshed out to inflate the posture of the management. They totaly rejected the concept of a Tenant Relations Specialist. A name for the guy on site who works out all the problems. All The Problems. Knows the Hood like it is his. Walks the walk and confronts both tenant and management and makes them realize that there is a common problem and arranges for those problems to be solved. Social Worker, do gooder with a Masters in Business Administration and some ties in local politics. aka A Menche!
Lucius
Thanks for sharing the other side of the story with us. Fascinating.