As an investor, it’s important to understand the role that property management can play in determining the success of any multifamily deal. BAM founder and CEO, Ivan Barratt, has noted that good property management can turn a mediocre deal around, while poor property management can sink a good deal. We look at how property management functions within your multifamily investment in today’s BAM Blog…

The Benefits of Vertical Integration

BAM is the property management company that serves Ivan and investors by managing the assets. By having familiar, quality staff who are on-site five-six days a week, you avoid problems that can be endemic to multifamily investing. You aren’t stuck dealing with a staff of unknown individuals, who may hurt the bottom line with lackluster performance. By having full control of hiring and confidence in staff from maintenance and construction up to on-site property managers, we take that worry off the table. It’s also far more cost-effective to deal with common industry repairs and maintenance issues by using our own property management company staff rather than hiring outside contractors for the same work. Our executive staff is at headquarters and their job is asset management; they oversee the staff and properties – from renovation projects, to budget oversight, to employee training, and more.

Property Management: A Critical Piece of the Puzzle

Ivan started the property management company first, knowing how important it was to investment success. In fact, when BAM looks for good deals, Ivan will look for a property that is already being run as a successful business; how it’s managed is part and parcel of the property’s success. One important page to note in Ivan’s playbook is that the property management company is not focused on profit but on execution. Unlike other property management companies, BAM has an extra 15% margin that is reinvested in the people (hiring, training, and retaining) so the company and ultimately the investors benefit from having the right people in the right place managing the assets. Ivan estimates that 95% of BAM’s 65+ employees are involved in property management, showing its importance to investment success.

Building the Right Machine Pays Off

Ivan has said in numerous podcasts that he built the property management machine to get where he needed to go. Having quality asset management is a necessity and by creating the company that will keep each property running smoothly and as a successful business, BAM continues to serve investors. When Ivan refers to poor management negatively affecting an otherwise good deal, it shows the importance of ensuring that each asset is under efficient and effective management. While other property management companies are geared for profit, BAM is designed to serve the multifamily property communities and their investors. The executive team and individual property teams are structured to successfully manage the daily needs of each asset BAM acquires.

To learn more about multifamily investing, visit www.ivanbarratteducation.com