Description
Welcome to the Managing CRE Risk podcast, where we believe that if you can identify, understand, and manage risk, you can take huge leaps in your CRE journey and find more success along the way. Today, Jeremy talks about our last episode with our great guest, Axel Ragnarsson. In that conversation, we discussed how to make sure that your operations process is as functional and well set up as possible. Now, we would like to share some of the key takeaways from the interview.
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“If you do things while you have control over them, even if it feels a little early, you're much better off than reacting to a crisis.”
Our last guest was Axel Ragnarsson, an investor with a lot of properties in New Hampshire, Indianapolis, and Florida. He's a property manager and an operator with over 300 doors in his portfolio.
In that conversation, we mostly talked about how to create functional and well-set-up operations, and now we’d like to share some of the key takeaways.
- You have to have your reno budget and your CaPex figured out right from the beginning and stick with it as best you can.
Be conservative with your underwriting and raise 15% more capital. The last thing you want to do is go back to your investors for more money.
- Make sure you get your renovation done quickly.
If you do all your renovation upfront you know the exact cost and don’t have to budget for it later. This way you can control the risk by controlling the environment.
- Set clear expectations and have good communication with your property managers.
Look out for the red flags in a property manager. The 3 main red flags are using bad softwares, getting bad referrals, and unclear communication.
Set your communication requirements with your property management company and set clear expectations from the very beginning. This is how you can mitigate the risk.
How do you manage your operations process? What makes it successful?
Share with us on social media!
Mentioned in the show:
- Shineinsurance.com
- Jeremy’s LinkedIn
- www.shineinsurance.com/managing-commercial-real-estate-risk
- The REI Clarity Framework
Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/
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Until the next time, We truly appreciate you listening.
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