Tilden Moschetti: Ensuring good
property management is critical

to syndicating your investors
are counting on the property

being managed in such a way that
their asset doesn't start

deteriorating. Under the guise
of, of property management, we

have really four different kinds
of analyses that we need to know

as syndicators and acid managers
in order to make sure that

property management is working
as effectively as possible. Now,

if you're doing the property
management itself, this is kind

of a nice overlay of the kinds
of things that you should be

thinking about to make sure that
its maximum value is being given

to your investors. If you're not
doing it, you still need to have

this framework. And it acts as a
discussion between you and your

property manager in order to
keep those values as high as

possible, again, for your investors.

Okay, so what exactly is this
system that I'm talking about?

It's basically four different
analyses that take place, and

then a fifth one that kind of
controls them all in

prioritizes. So let's look at
what that looks like. So we've

got four different ideas. And
then if they feed into a fifth.

So the first one is about the
property itself. So the property

needs to be analyzed in an
objective framework in order to

understand where it is in the
market. Everything should be put

together and consolidated into
one solid thing into one

notebook or one box or one
something that has every detail

and makes it findable so that
you can have that property

managed in the most effective
way. Now, what am I talking

about? I'm talking Yes, I'm
talking about floor plans. And

stalking plans, I'm talking
about those things. But that's

not all. I'm also talking about
the all of the other documents

that accompany this, such as
what what sort of systems are in

place. And by that I mean,
plumbing system H HVAC systems

heating, those kinds of things.
What are the what are the the

systems that exist? Do they have
warranties, all those things are

nice consolidated in one place?
What sort of improvements? Life

is left? In this could also
apply to the systems. What is

the plan for the roof? You know,
as the roof got five years left?

Are you planning to really just
patch it? Or maybe it's time to

replace it? What are those
things? So understanding what

the how the property actually
sits? The second piece of a

necessary property management
plan is the financial analysis

piece. I hear I'm definitely
talking about rent roll. And I'm

definitely talking about
budgets. And I want to see not

only where is it right now, the
day that I bought the property

and took it over. But I want to
know as much historical detail

as possible. Because under in
that framework, I can look back

and see oh, we actually in the
winters I bought this property

in the summer, but in the
winters we actually have a we

have snow removal, or we've got
this or I've noticed this trend

of this over time. So we can
kind of see what is actually

taking place in the bigger
picture. So and where we're at

today, so I can make plans for
the future. The third category

is related to financial and so
I'm going to put it under here

is lease analysis. I think that
you need to as a as an asset

manager, you should read every
single lease, you need to be an

expert on the lease. Not only
that, but there should be lease

abstracts that are done of every
lease. And that what I do a

lease abstract, I'm looking for
the big ticket items to really

kind of understand what is going
on with every single lease.

Also, it's very convenient.
Because when somebody has a

question about what's in their
lease attendants asking, all I

have to do is pull out my lease
abstract. And it's right there,

I can point to where it is in
the lease. So lease analysis is

very important, not only just to
know when things are coming due,

but also to make sure that you
understand what, you know,

what's historical, also, what,
what's been going on with with

this tenant in the past? Are you
on your fifth amendment? Are you

on? You know, is there no
amendments at all? Where is

there been? You know, where is
it, the lease say, is due right

now. And then where's the basis
for that, so I can point to them

when it's time to increase rent,
collect more games, or whatever

I'm going to need to do. The
fourth is market analysis.

And market analysis has three
different levels that we go

through. So I like to start with
the building level. And here,

it's basically a SWOT analysis.
There's nothing fancy about it.

I want to know where the
building sits, what its

strengths are. And I'm guessing
this is a market analysis. So

it's not looking at as the
property level, nobody really

comes into a building goes, Wow,
look at the air conditioning on

that building. When it relates
to a market analysis, the tenant

looks and says, Wow, that's a
really pretty building. But your

rents are much higher than
everyone else. Right. So I want

to do a SWOT analysis,
strengths, weaknesses,

opportunities, I put a
Opportunities and Threats. I

want to know what all of those
things are, then I need to

understand the neighborhood. I'm
looking for things like, where

is this particular neighborhood
at in the light in the market

lifecycle? You know, is it
really booming right now? Is

there gentrification happening
right now? Or is it kind of

slipping back and not being as
nice as it used to be? Where is

that? What is the long term
demographics of just this

neighborhood? are more people
trying to come in? Is this a hot

neighborhood? Is the income
levels Nice? Or is it is this I

have some issues, I need to
understand all of those things.

And at a bigger level, I want to
know what my region is. And I

want to know, some of the same
things I want to know. Well,

what are the demographics of the
region? Is job growth happening

and a huge population is coming
in, that's going to be affecting

my property as well? Or is is,
is is that falling? Is there a

huge amount of construction
going on such that absorption

just isn't happening at a at a
reasonable rate, and it's

creating too much vacancy, I
need to understand those things

as well. So now you've got these
four things, right. You've got a

market analysis, a lease
analysis, a financial analysis,

and a property analysis. The
last step is the issue analysis.

These all feed into there
because as you're doing these,

you're going to be starting to
identify what the different

issues are that you have with
the building, and things that

you want to improve upon things
that you can improve on. So what

you want to know first is you
want to develop action plans.

Right, that's the end goal. And
to do that, we start by listing

the issue. The cost. The reason
why you want to address it at

all, maybe an as is analysis
versus alternatives and what the

source of funds would

be and once I have all of those
documented, I can start making

good decisions on priority 123.
So that way, I'm not doing

things in an order, that doesn't
make sense. I've got five years

left on my roof. But my parking
lot is having continual problems

yet I'm doing the roof, not the
parking lot. Because I found a

guy who has a little bit cheaper
or something like that, maybe

there's a, there may be a
radical change in your priority.

Once you break down these ideas,
I would also suggest for each

one of these issues, come up
with two or three different ways

to solve the problem. So if it's
a new roof, perhaps it's you

want to you'll put on, you'll
just, you'll just coat it, maybe

you'll rip off the roof
altogether. And then or maybe

it's you replace the roof with a
completely different kind of

roof, maybe a one with more
insulation, and see how that

works. And then you get
different costs. And you can

analyze really well what's going
to add the most value in order

to make this property really,
really sing. So though that is

how it's under this, it's under
that framework of property,

financial market analysis, lease
analysis. And then we do the

Issue Analysis. That should be
how you manage your property

from a higher level view. So you
still have the day to day

property management that's
taking place, but this is how

you prioritize those capital
expenditures and those projects

within that property in order to
maximize the value. In the next

section, we're going to talk
about probably the most

important thing to your
investors besides communication,

but probably even more than
communication and that is

distribution. Just how do you
distribute distribute funds to

your clients, that cash flow
that is recurring