Page 237 - Trump University Commercial Real Estate 101

Use a Time Multiplier

It ’ s a mistake to own a Class C property and hire a Class A manager.
The manager ’ s standards are too high and they will over - improve the
property compared to the income potential. Of course, you don ’ t want
to do the opposite and get a bargain - basement Class D manager for your
Class B property.
Similarly, it ’ s a mistake to go with a manager whose main experi-
ence is multi - family when you have a strip mall to manage, despite
their insistence that they are commercial property managers .
Ask the prospective management company what type of property
makes up the largest percentage of properties that it manages. If this is
not the type of property you are buying, move on.
Speaking of property type, one of the highest designations manag-
ers can get is Certified Property Manager , or CPM . It is a distinction

granted by the Institute of Real Estate Management and can be
researched at www.irem.org .
CPMs are trained in property management for all property types.
However, graduates tend to specialize in a particular property type.
The nice thing about the IREM web site is that you can plug in which
city and property type you are looking for, and the site will return
results that match those criteria. If your city does not have any results,
then broaden your search to surrounding areas. Managers often work
in territories that are larger than the city they ’ re based in.
Most of the larger companies know where their skills lie and will
not attempt to take on a property that they do not feel they can be suc-
cessful at managing. You have to watch out for the smaller manage-
ment companies, though. They may be looking to increase their
business despite their lack of experience in your property type. This is
called going to school on you. Let some other property owner pay the
price to give these companies an education.
I like hiring property management companies that manage lots of
units. Some investors think they may get lost in a large company
and won ’ t get the individual attention their property needs to be
successful.

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