JF3385: 3 Ways to Reduce Expenses on Multifamily Properties ft. Matt Picheny
Matt Picheny, a real estate investor and coach with a portfolio of over 4,500 multifamily units, shares his strategies for navigating around increasing expenses, including evaluating your budget for potential savings, creating additional income where possible, and contesting property taxes when appropriate. Key Takeaways: Expense Reduction Strategies: Matt emphasizes the importance of scrutinizing every line item in the financials, questioning vendor relationships, and seeking opportunities to reduce expenses. He highlights negotiating insurance and taxes, renegotiating contracts, and in-house hiring for specific trades as effective methods to cut costs. Property Tax Contesting: Matt shares his experience with contesting property tax increases, emphasizing that it's an ongoing process. He discusses the alignment of interest with consulting firms that work on a contingency basis, ensuring that they only take on projects where savings are achievable. Acquisitions in the Current Market: Matt outlines his acquisition strategies for the current market, focusing on properties where he can assume seller debt and secure favorable financing terms. He also discusses the potential of new construction deals with advantageous financing, presenting them as the ultimate value-add opportunities. Matt Picheny | Real Estate Background Real Estate Investor & Coach Portfolio: 4,500+ multifamily units as a GP 7,000+ units as an LP Based in: Brooklyn, NY Say hi to him at: picheny.com Best Ever Book: Principles by Ray Dalio Greatest Lesson: I should have bought rate caps on several deals as opposed to using variable rate debt. Check out Matt’s previous episode: 2679 - 5 Tips for Transitioning from LP to GP Sponsors BV Captial BAM Capital Learn more about your ad choices. Visit megaphone.fm/adchoices