Where I know I can add far more value than a pre-negotiated fee I offer
I have found that the most experienced investors better understand the value in this type of service. Less experienced investors believe they know better than to have another head in the room to get additional input on based on another person’s experience.
Experienced investors have the self confidence to want to hear what they might not be thinking of or various other ways someone else has seen things done - too many “yes men” are no help at all to them.
Investors should have their attorneys review all deals, but it is not always feasible to pay an attorney $400 an hour to be there when you visit sites, meet with contractors, or host events with potential partners. Nor do many attorneys really want to expand their advice beyond legal affairs to broader affairs like helping ask questions of your landscape architect or contractor to help catch misses or misconceptions in communications.
A Few Specific Thoughts
Cost Avoidance + Quality Enhancement On your Projects
Those 20/20 hindsight opportunities to avoid mistakes are among the lowest hanging fruit to avoid large swings in cost - many of the responsibilities of a property manager within the California Department of Real Estate handbooks guidance on the roles of a property manager.
Our role is to aid in maintenance and selection of contractors but not to warranty their work. Experience helps one know a few extra questions to ask a contractor for a more complete job and help even architects double check their plans.
Familiarity and training tenant service roles in buildings and mediating of tenant disputes and behavior is part of the job of the manager.
Some services might be as simple as receiving deliveries for tenants or transportation between owned properties. When these need to be discreet or require an extra experience based understanding paying more for experience is worth every cent.
Good Guy, Bad Guy and beyond - a “Consigliere” ? :
Other services within the property manager role walk the line between the skills of a transactional broker and those of the manager the agency role of collecting and transmitting information to and from ownership.
Without ever dipping into the specialized role attorney’s are trained for, a real estate broker in a “Consigliere” role creates the separation of egos the social fall guy to ask the embarrassing questions that must be asked, be the one bearing bad news, and generally test waters without risk of implying his clients consent.
The extra suit in the room can have it’s symbolic advantages and a second set of ears to answer a principals “did I hear that right, was that what he was getting at?” questions allows priceless input even for a principal of vast experience not looking for business advice.
I do not approach engagements as hourly consulting, however fees are roughly of $1000 per 8 hour day of attention - frequently that means a partial day at a location with subsequent follow-up discussions or research. At any given time I am to limit my involvement to a small handful of clients each using my services 10 to 20 times a year: an established rapport and familiarity with client priorities adds the most value and, my satisfaction comes from adding value. If it were not for the satisfaction of working with people I respect and enjoy, this rate would be too low.
all services will be invoiced and billed from my business licensed in both Beverly Hills and as a CA licensed broker.