Manage episode 303611909 series 2942547
As the saying goes, it’s the little things that can make a big difference!
In this episode, I’m going to walk you through 10 very simple techniques and strategies that will help you drive income, increase your profits, reduce your expenses and improve your bottom line, when purchasing a new multifamily property.
There is a general understanding that in order to make money you have to renovate and increase the rents. But if you want to truly maximize your profits, there is more work to be done.
A lot of the tips that I’m going to share might sound like no-brainers, but you’d be amazed at how often we see other property owners make incredibly simple mistakes that end up costing them a ton of money. If you could save 25-35% on your water bill and thousands of dollars every year on utilities, why wouldn’t you do that? Spending $300-400 per unit on plumbing upgrades can literally save you tens of thousands each year.
Today, you’ll learn the exact system our team has in place to make sure that we’re taking advantage of every opportunity to make money and turn a profit on every unit.
Key Takeaways with Josh Cantwell
- Improve the resident experience and upgrade the units.
- People will pay more for a better experience.
- Raise the rents and consider using dynamic pricing by changing the rent prices by month or by season to take advantage of peak moving times of the year.
- Lower the utility costs by upgrading to LED lights wherever possible.
- Include a partial amount of the utilities on the tenants bill.
- These are all benefits and features that you're offering, so bill it back to them.
- Run a segregation study on the building by having an accounting team come in and segregate the soft and hard costs of the property.
- Eliminate poor management. So many properties have third party management companies with a terrible expense ratio.
- Quickly turn the units and fill them. Have a plan to turn vacant units into rented units within a few weeks.
- Find one cable and internet provider to wire the entire building, lock in the contact and resell cable and internet to the tenants for a profit.
- Water conservation is huge. We install low-flow systems on everything like toilets, shower heads and faucets. This can often help reduce the water and sewer bill by 25-35% each year. And be sure to look out for slow leaks as they literally flush your profits down the drain.
- Get multiple quotes from contractors for your CapEx items like paving, landscaping, trash and snow removal. You can save thousands of dollars just by shopping around.
- We have $20 million in private capital that we are looking to use in the next 3-6 months so please contact us at Freeland Ventures if you’re looking to partner up on a deal.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/229
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Connect with Josh Cantwell
Sign Up For My Coaching Program! To unlock your potential and start earning real passive income, visit joshcantwellcoaching.com
Get The Flip System Book! To get access to a free copy of The Flip System, visit getflipsystem.com/podcast