| PROPERTY MANAGEMENT SERVICES |
CONSULTING SERVICES |
BROKERAGE SERVICES |
Are you considering buying or selling a large apartment asset? Don’t do
it without a CERTIFIED PROPERTY MANAGER (CPM®) on your disposition or
Why choose a CPM®?
As a seller, the value of your asset will be maximized when your on-site
operations are in peak condition and financial records are orderly and
comprehensible. As your agent, the Management Innovations brokerage team
will perform a thorough inspection of the physical plant and all books and
records prior to listing your property for sale. The goal of this
pre-listing inspection will be to identify any deficiencies and remedy them
before they become barriers to a quick and price-maximized sale.
Prior to the property being place in the market, we will ensure that your
on-site books and records are in order, that the curb appeal of the property
is maximized and that all problematic physical defects are identified. Once
identified, a corrective plan will be drafted that includes costs estimates
for repair. Then the decision will be made whether it is wiser to implement
the corrective plan prior to listing the property or make it a negotiable
item at the time of sale. Either way, physical defects, especially serious
ones, will be less of an obstacle for potential buyers when they are
honestly disclosed and a corrective action plan ready for review by the
Similarly, the financial accounting records must be in order. We will
inspect all financial accounting records for accuracy and assemble financial
reports to be included in the offering package that are easily
comprehensible and verifiable.
Our brokerage team will do everything possible to make purchasing your
property an easy transaction for the buyer. The acquisition process itself
is complicated enough. We don’t need to add to the complexity by presenting
confusing financial reports or attempting to hide physical defects. Things
are what they are. We believe in full disclosure: the good and the bad. The
fastest way to kill a sale is for a potential buyer to “discover” a defect
that was known to the seller. Very few problems cannot be overcome in the
negotiation process. However, if the integrity of the seller or its agent is
in question, a successful and equitable sale will surely be compromised.
The long-term success of any large apartment investment is largely dependent
on having a thorough understanding of the physical plant and property’s
operations prior to the actual purchase. Nothing is more important than
this. You must know what you are buying and you must be able to verify what
you are being told by the seller. Let’s face it. There are many sellers and
agents out there that do not operate by our belief in full-disclosure.
Therefore, it is caveat emptor- BUYER BEWARE! We are masters in obtaining
the facts and discovering any secrets about a potential investment.
Our acquisition team will thoroughly inspect all areas and systems of the
physical plant. Areas include, but of course are not limited to, all
apartment interiors, the leasing office, recreation rooms, maintenance
shops, storage areas, laundry rooms, the pool/spa and equipment, air
conditioning and master water heating systems, elevators, building
exteriors, roofs, staircases, patios and balconies, landscaping and
irrigation, garages, carports and open parking areas. Defects will be
identified and repair estimates obtained. These items will then be
negotiated with the seller.
All on-site books, records and operations will be thoroughly inspected for
accuracy. The on-site staff will be interviewed for two primary reasons.
Initially, the on-site staff can be instrumental in identifying any physical
defects and in obtaining information about overall operations. Secondly, it
is helpful to get an initial impression of the on-site staff to determine if
staffing should remain the same after the purchase or if changes should be
made. If so, the search for a new manager should begin during the escrow
A thorough rental market survey will be conducted to establish the market in
which the property competes. This survey will provide information necessary
to understand the subject property’s “place in the market” and to determine
what are the achievable and realistic market rent levels for the property.
This is important, especially if the seller has priced the property based on
“projected” net operating income.
A visit will also be made to the local planning department. Information will
be obtained regarding the status of any new apartment inventory that is in
the development pipeline, how much vacant land remains that is zoned for
apartments and about any anticipated changes to zoning that may allow for
development of more apartments. This information is critical because it can
affect future absorption and vacancy rates at the property.
Lending rates and programs will be investigated and analyzed to determine
the best debt structure for the investment based on the buyers goals and
Finally, the financial accounting records will be inspected and all
information provided by the seller will be verified. The rent roll will be
analyzed for accuracy. The general ledger will be audited for accuracy and
for the purpose of identifying any chronic physical defects that require
All information obtained will be analyzed to determine if this asset can
meet your investment goals and objectives.
There are many brokerage firms and agents in the market today. Very few have
the depth and breadth of our working knowledge of on-site operations and
financial accounting. Even fewer are
CPM®s. Give yourself an instant
advantage by selecting a firm that knows what it takes to make a large
apartment real estate transaction successful. Choose Management Innovations,