Property Management System

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PROPERTY MANAGEMENT SYSTEM HANDOUTS (NOV 13, 2023)

Property Investment
• Complex system of practices and techniques that ultimately end in 1 thing (Making a successful property
sale and earning a profit in the process).
• Include Commercial and Residential investment
• Rules vary from country to country

Why Real Estate Investment

Typical Property Investment Process


• Setting financial vision
• Accessing your resources
• Strategy development
• Research
• Cash flow analysis
• Pre & Post settlement milestones
• Property investment review

Real Estate Portfolio


• Collection of different investment assets that are held and managed towards achieving a financial goal.
• Diversified  Reduce risk and improve returns
• Identify your objectives and know the “numbers”

Back to basics: How to increase property values?


• Raise market rent
– Raise modestly per year vs. hitting with a major all at once
– Reduce Turnover
– Moving out almost certain lost in rental income
• Develop a market niche
• Maintain and Renovate the right way
– Not just get rich quick mindset
• Cutback operating expenses
– E.g. Old Lighting to LED
• Scrutinize property tax assessment and take advantage of tax benefits
• Improve cash and improvement management
• Keep abreast of market trends

Property as a Global Asset


• Expectation of Income
• Associated risks

Consideration in Evaluating Real Estate Properties


• Financial statement
• Return on Investment
• Management cost
• Future Trends

Real Estate is the natural choice for many investors, They’re initially attracted by?
• Relatively fewer market fluctuations compared to stock exchanges.
• Healthy cash flow with regular income coming your way.
• The ability to achieve capital growth by selling a property and pocketing the profit.
• The potential to be fairly hands off and earn passive income

Successful Real Estate Investing Lessons


• You’re not going to get rich quick buying real estate. It takes research, time and planning.
• See a property before you buy.
• Expect the unexpected.
• Be humble you can learn a lot easier by asking questions and researching than by making mistakes and
paying for them.
• Have good professionals on hand so you can ask for help when you need it.
• There is always something you haven’t thought of
• Make your mistakes on smaller projects before you step up to bigger one’s.
• Know how long to hold (when to exit)
• Setting goals for each property is as important as actually buying properties.
• Remember its about location, location, location but also term, timing and government.
• A good price doesn’t necessarily mean a good deal, Do due diligence.
• Talk and have open communication to your investment partners.

Untapped Potential
- Those income properties that are tired and worn and have extensive deferred maintenance.
- Those that are physically sound but poorly managed

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