7/28/2019 VIG in Personal Real Estate Investor Magazine

http://slidepdf.com/reader/full/vig-in-personal-real-estate-investor-magazine 1/2

March - April 2013 . Personal Real Estate Investor www.PersonalRealEstateInvestorMag.c102

IN THE HOUSE

This is a textbook example of a couple who believe in real estateand are doing what many investorswish they had done.

OKLAHOMA

Danny and Amber Newberryrecently closed on a 48-unit mul-tifamily property they describe asa C+ property in an improving Cneighborhood in Oklahoma City.The first phase of a new mall has

outperformed retail expectations,and the developers have acceleratedPhases 2 & 3. A Super WalMart andother big boxes are moving into thearea.

The Newberrys bought thisunder-tenanted property from adelinquent, absentee San Franciscoowner for $15 a square foot. Withpartners, they put $50,000 down ona $700,000 property, expecting toinvest $350,000 in renovation.

“The local management had

 been Band-Aiding everything,” saysDanny. “We needed to re-clad theexterior, bring the nine out-of-ser-vice apartments to rental conditionand resurface the parking lot. Wemoved from our Cedar City, Utah,home to oversee the renovation andproperty management until we getthe property to where it needs to be.”

OUT OF SERVICE & NO PLAN

The former owner had accepteda 60% occupancy, so the propertywas only generating $55,000 in netincome. “By renovating the prop-erty and bringing all of the units toproduction, we have increased thenet to $155,000 a year,” says Danny.

“Accepting ‘down units’ would havemeant accepting $60,000 in lostincome. We are bringing one of 

these idle apartments on line everytwo weeks. Since we took over inOctober 2012, we have brought rentsto market and will have this lostcapacity back by March.”

Renovating the property, hesays, has doubled the after-repairvalue from $15 a foot to $30 a foot.

“And then by increasing the netoperating income with all 48 unitsavailable, we will have increasedthe appraised value to a conserva-tive $1.6 million or more.”

Market rateS & Pet PreMiuM These are desirable 900-square-

foot, 2 bed/one bath apartmentsnow rented at around $550 a month

– up from $450. A $15 pet premium

helps because of a new a dog runthe Newberrys have installed.Danny and Amber are from

Cedar City in Southern Utah, aboutan hour north of Las Vegas. Dannyhas always liked the idea of buyinghomes. He bought his first foreclo-sure six years ago, cleaned it up andrented it. He then bought a nearlyvacant six-plex for $25,000 a door. Herenovated with contractors, spend-ing $6,000 per unit. The after-repaircost (ARC) of $31,000 became an

after-repair value (ARV) of $50,000a door, increasing the valuation to$300,000.

“I favored four-plexs,” saysDanny. “I also bought a triplex andduplex and a 10-unit property inLas Vegas. Starting out, family andfriends helped with financing and

CASE STUDY – 

“READ THIS TO THE END!”

Can you guess the ages of

these “old hands” at realestate investing?

(The answer is on Page 104.)

All Property Management is a lead

provider of property management connectio

on the Web. In a move to improve investor aowner experiences with its network of prope

managers, the company has instituted an annVisitors’ Choice Award.

The 2012 charter awards are given to 2property management co

panies that were selected t

most often by the more th2 million rental property o

ers who visited All Prope

Management’s website l

year.“Connecting rental property owners w

the right management solutions is the core

our business,” said Reggie Brown, CEO of Property Management. “The companies rec

ing this award are particularly skilled at handlhigh volumes of new business, and as such, te

to be some of the most experienced managersour network. The reason we did this is to rec

nize companies that provide exemplary serv

The best rise to the top because they have tgreatest customer conversion rates because

best customer facing skills. We are doing t

to recognize our best property managers, b

practices as a property management distinctand raise industry standards generally.”

Since APM began in 2004 the company h

made more than 100,000 connections betwe

rental property owners and property manament companies.

APM focuses on helping property owne

maximize their rental potential through sharresources and introductions to local prope

management experts that fit their service nee

and property types.In November 2010, the company was p

chased by an investment group led by form

Microsoft executive and founder of Walksco

and All Star Directories, Mike Mathieu. Undthis new ownership, the company now has

employees and is aggressively building on

industry leadership by expanding its online nwork, products and resources designed to c

nect property owners and managers nationwi

All Property Management

Reggie Brown, CEO

206-577-0029www.allpropertymanagement.com

APM’s ‘Visitors’ Choice Awardsspotlight top property managers

7/28/2019 VIG in Personal Real Estate Investor Magazine

http://slidepdf.com/reader/full/vig-in-personal-real-estate-investor-magazine 2/2

March - April 2013 . Personal Real Estate Investor www.PersonalRealEstateInvestorMag.c104

advice. I preferred distressed proper-ties, as there is a greater upside. We

prefer professional management atall of our properties except for theon-site Oklahoma project we are nowinvolved in. We plan to live on-sitefor the first few months to renovateand learn the property, then pass theresponsibility to a professional prop-erty manager.”

Starting right Here’s the kicker: Amber is 23 and

Danny is 24, and they control 89 rent-al doors (SFDs and multifamily). At 18,

Danny decided that working for hisdad in a used-computer export busi-ness was not for him.

“Beyond just a good financialresult, the satisfaction of doing a great job turning around a building andhelping tenants provides us deep sat-isfaction,” says Amber, “and it’s lotsof fun to be your own boss.” NeitherDanny nor Amber was born with asilver spoon in his/her mouth, but both have the support of their fami-lies. They began as high school sweet-hearts when she was a sophomoreand Danny was a junior. Danny didhis first deal in Cedar City at 18 andgot hooked. When asked how they’ve been able to succeed in a tough econ-omy, Danny says, “There is no magic, just planning, analysis and persever-ance.”

The Newberrys are no newcomersto real estate investing, even thoughAmber is just 23 and Danny is 24.

IN THE HOUSE

WELCOME ABOARD

THE BOARDWil l iam Leider has joined

NEXZUS Publishing Group as

Board Chairman. NEXZUS pub-

lishes Personal Real Estate Investor

Magazine, the emerging voice of anemerging industry. NEXZUS also

promotes the leading investmentprovider event Investor Provider

Leadership Summit.

Leider has served as CEO of sev-

eral public and private companies.He brings more than 35 years as a

strategic consultant to a variety of

organizations, from Fortune 500s toentrepreneurial startups and every-

thing in between including Toshiba,

KPMG Peat Marwick, Thermador,

Paramount Pictures and Oracle.Leider is the author of the break-

through book, “Brand Delusions.” By

way of allegories, Leider demon-strates how companies can be blind

to their brand deficiencies. “Brand

Delusions” shows how to spot these

shortcomings and then strengthen abrand to become more successful.

“Execution of basic principles

and processes that embrace the term‘brand’ is more than an image, identity

and message,” says Leider. “A brand

is a widely held set of beliefs and

expectations about what you deliverand how you deliver it.

“I believe that personal real

estate investing is an emerging cor-nerstone of financial independence

for all individual investors and neces-

sary to protecting retirement income

in our society,” Leider says. “I believethat Personal Real Estate Investor

Magazine is a powerful investment

advocate and leading voice for thisemerging asset class. I am thrilled to

be a part of this.”

“Leider is a perfect fit for both themagazine and the industry at large,”says PREIM Publisher Andrew Waite.

“Bill has an innate understandingof ‘brand,’ brand positioning and pro-motion and the importance that must

play in the effort to make personal

real estate investing recognized and

accepted as the mainstream inve

ment that it is,” said Managing Edi

Linda Wienandt. “His expertise

strategic leadership helps our pucation and the emerging industry th

we cover.”

Leider says he eagerly accepted t

challenge of helping the magazine

its mission to be a watchdog of t

personal real estate investing indtry as it matures.

“What I like a lot is the magazine

position and ability to contribute togrowing body of knowledge on a ve

practical level,” he says. “It strives

continuously write about topics of c

rent relevance to not only investo

but also to people and organizatiothat work in that realm and who

work supports the whole concept personal real estate investment.

“THE BOTTOM LinE is:

iT CAn HELp pEOpLE.”

Leider is looking forward to me

ing those people whose efforts a

moving the industry forward. He cbe reached at 602-241-0800, e

130, or by emailing william.leider

nexzuspub.com.

He will be in attendance the Spring 2013 Investor Provid

Leadership Summit scheduled

be held in Baltimore April 25 an26, 2013. This event precedes t

REIExpo April 27-28 at the sam

location. To register, go to ww

PersonalRealEstateInvestorMag.

William Leider