Most Limited Partners are so into the hype of continuous rental growth rates apart from the increasing inflation of goods and services. Many investors are also in deep belief in their projections and numbers that forget to become realistic in their business plans. With that being said, Limited Partners must be able to see things objectively and dive deeper to become attuned with their business plans.
In today’s podcast episode, we interview Jason Yarusi, Managing Member of Yarusi Holdings, Multifamily syndicator and Mentor. Today’s topics are focused on setting realistic expectations in managing the multifamily real estate business which will help existing or aspiring Limited Partners manage their real estate businesses and investments.
What Excites Jason About Managing Multifamily Properties?
What excites Jason about managing a large multifamily property is he treats it like a business, which involves the property and the management that should work hand-in-hand. According to him if the property has a lot of deferred maintenance not being kept up well, it’s poor management. Poor management will then result in a poor business.
Another thing that excites Jason is the part where he is building better communities for people to settle. Building better communities will result in more people who will treat it like a home which will eventually trend to a better bottom line and better returns for the investors.
Finding the Key People to Help Maintain the Business
One important key to a successful real estate business is by having the right people. According to Jason, his company is keeping performers that continuously adjust to the day-to-day tasks of his business. Having strict practices and procedures in place make sure that everything is in control and in the know of what is really happening. And this can be further reinforced by getting weekly reports and weekly calls with the property management companies.
Setting the Realistic Expectations in Managing the Real Estate Business
Jason emphasized the importance of sticking to your business plan. But he further said that the business plan should also be flexible and realistic at the same time. The projections may say that sustainable growth in terms of rental rate will be on for the next few years but the question is will you be able to sustain it or will you see a massive dip in occupancy. It is not all about building the right model and projections but being ready for what the market brings in the next few years.
Common Mistakes in Managing the Real Estate Business
Many real estate managers are good with projections and numbers in a dummy spreadsheet. Making assumptions based on good results, bad inputs and good inputs but bad results. So, at the end of the day as Limited Partners, you have to make sure that you are attuned with your business plan.
Who is Jason Yarusi?
Jason is an active Real Estate Syndicator and Real Estate Investor. Jason and his wife Pili founded Yarusi Holdings, a multifamily investment firm with over 2000 units acquired since 2016. The firm repositions properties through operational efficiencies, moderate to extensive renovations and complete rebranding.
Jason also hosts The Multifamily Live Podcast, a podcast that provides actionable content and tools to build and strengthen your multifamily business. Jason is founder of the New Jersey Multifamily Live Club with over 2,500 members that focuses on Real Estate Syndication and Multifamily Investing and trains others on the success formula to buying apartment buildings at www.7FigureMultifamily.com.
- LinkedIn— https://www.linkedin.com/in/jasonyarusi/
- Website— www.yarusiholdings.com
- Facebook— https://www.facebook.com/JYarusi/
- Instagram— https://www.instagram.com/jasonyarusi/?hl=en
- Twitter— https://twitter.com/jasonyarusi?lang=en
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