Working With Your Property Management Team with Courtney Vitek

04/07/20 • 36 min

Prosperity Through Multifamily Real Estate Investing

Today’s guest on Prosperity Through Multifamily Real Estate Investing podcast is Courtney Vitek from MLDC Management. She is accountable for day-to-day operations and client relations at her company and progressed quickly in her 11-year tenure. She began as a leasing agent in 2008 at Greystar and was quickly promoted there as well. Courtney grew her portfolio quickly and significantly at Citygate, and has received many certificates and distinctions since then.

Cody asks about the primary responsibilities of property managers and Courtney explains that it is to execute the business plan of the client, align it with their goals and vision, and make sure they get their returns. They also have to comply with housing laws and ensure residents have safe homes to live in.

Our guest explains that clients should have monthly conversations with her to review budgets, since as a PM, she knows more about the little details. She invites clients to ask questions, try their best to communicate clearly, listen to her, and share a relationship of respect.

Courtney is asked about anything that stands out to be aware of during today’s challenging market cycle with an unpredictable future. She elaborates on how she has noticed that investments are being pushed aggressively to hit certain returns which aren’t realistic.

Following the principle of the necessity of learning more and never assuming that we know everything, Courtney shares how she pursues knowledge. This includes being a member of PAC, which gives her early access to information, engagements with industry peers to hear and learn from their stories, and an invitation to their yearly education conference.

Previous Episode

Keeping A Strong Mindset with Chris Salerno

Welcome to Prosperity Through Multi-Family Real Estate Investing, a podcast for anyone seeking to learn how to create a lifetime of wealth and financial freedom by investing in multi-family real estate. Join your host, Cody Laughlin, as he interviews multi-family real estate investing expert and CEO of QC Capital, Chris Salerno.
Chris believes real estate investing is financial freedom. At just 24 years old, he was leading the number one real estate firm in the Carolinas and has since won multiple entrepreneurial awards, such as Elite Magazine’s 30 Under 30 Entrepreneurs and Charlotte’s 30 Under 30 Future Business Leaders.Cody and Chris discuss Chris’ transition from the single family to multi-family industry. Chris shares the four most important factors of success: learning everything you can about the industry, finding a mentor, setting goals, and having a positive mindset. Once you’ve gained confidence in your industry knowledge, it is much easier to build your network.
One of the hardest things for newcomers to the industry, Chris explains, is raising money. He shares his biggest struggles in getting into the multi-family industry and how he overcame them. It is important to keep your positive mindset at this stage and let your network know what you’re doing so they can support you.
Real estate programs are often highly expensive. Check out Chris’ program he is offering for $199/month where he shares his underwriting template, all the documents that have gotten him to where he is today, as well as informational videos, such as in-depth lessons on building relationships with investors.
Connect with Chris
http://www.mindfulmultifamilyacademy.com/
Instagram: https://www.instagram.com/chris_salerno_
Facebook: The Mindful Multi Family Network
Podcast: http://mindfulmultifamilyshow.libsyn.com/
Connect with Cody
https://www.blueoakinvests.com
Email: [email protected]

Next Episode

Understanding Cost Segregation with Yonah Weiss

On today’s episode, we spend time speaking with Yonah Weiss-Business Director for Madison Specs, a national cost segregation leader. Having served as an educator prior to joining Madison Specs, Yonah found his calling for teaching and serving others through educating and when he discovered real estate, he wanted to continue educating others and help them by educating them on tax saving strategies like cost segregation.

Yonah describes the basics of depreciation and cost segregation by breaking down the concept of depreciation and how it relates to tax savings. Cost segregation is an added benefit for real estate investors as it allows you to accelerate the tax deductions you receive from owning investment real estate into a shorter time span therefore increasing the amount of tax savings in the earlier years of ownership. Yonah explains how cost segregation seperates non-structural components of a property that has a value and puts in on a different depreciation schedule. In order to conduct a cost segregation study, however, you must have an engineer who’s well versded in tax code and the building components to perform a detail assessment of your property.

Cost segregation, although a poweful tax saving strategy, may not apply to all circumstances. For example, if you invested in a property using an IRA or other retirement accounts that are already tax deferred accounts, then you would not be able to benefit from the additional tax savings of a cost segregation study. Another example in which an investor may not benefit would be an investor with no passive income to offset.

A cost segregation analysis is free and allows you to discover the potential tax benefits prior to acquiring a property. If you acquire the property and decide that a cost segregation study will be beneficial, then an engineer is sent to your property and in turn you will receive a 90-100 page report explaining the tax depreciation benefits.

Cody and Yonah discuss the different items that are eligible for an accelerated depreciation schedule and examples of what those new schedules look like. They then discuss bonus depreciation, which allows you to assume much of the accelerated depreciation in year one of ownership which equates to massive tax savings in year one.

Whether you are a GP or LP, all parties with ownership in the property benefit from the tax savings from a cost segregation study and bonus depreciation (if qualified). One thing to be aware of however, at resale of the property you will have to pay a depreciation recapture tax, which is a tax on the amount of depreciation taken. There are ways to reduce that tax, as Yonah describes.

Engaging your cost segregation company in the due diligence phase can be beneficial for an investor. You can determine which depreciable items will benefit more from depreciation when performing renovations and you can also inform your potential investors of their projected tax savings if they decided to invest with you on a particular deal.

Yonah is passionate about tax savings, educating others, and real estate investing. His primary inspiration for his success is his family and his best advice to others is always remain humble, always ask for help, and keep learning from others.

You can connect with Yonah on LinkedIn @Yonah Weiss, via email at [email protected], or visit his website at www.yonahweiss.com. Also be on the lookout for Yonah’s new podcast series: Weiss Advice.

Thanks for tuning in! Until next time..