Streamline PMC Pamphlet

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Streamline PMC

Multi-‐Family Property Management and Consulting “Success Simplified”

Property Management | Consultation | Acquisition Specializing in repositioning & managing multi-‐family

communities


About Us

Streamline PMC began as a property management company managing one under-‐performing and non-‐profitable multi-‐family property with 18 townhomes. Over time, and with a systematic approach to problem solving, this one property was transformed into an easy to operate, sustainable, and highly profitable property. Streamline PMC’s client success made purchasing another distressed property attractive for the owners. If the systems worked on one property, surely they could work on another. Fast forward a few years, implementing the same systems at new properties, and all client properties were made sustainable and profitable. Streamline PMC’s success at property management made adding consulting services an obvious and valued addition to their offerings. With the skillset of various team members, the systems already in place, and a combined 25 years of consulting experience between our team members, Streamline PMC’s Consulting Services will make any owner operated property or property management company more effective, easier to operate, and increase its profits! Streamline PMC’s systems have been proven to take underperforming properties and turn them into smooth-‐running, sustainable, and profitable operations (see examples on the last two pages of this pamphlet or “Success Stories” link on our website.) Andrew Studebaker leads Streamline PMC located in Grand Rapids, MI. When he took over management of the first struggling property, Andrew did what comes naturally to him: he systematically evaluated every area of the business and created a system to manage it. What Andrew found over time was that he had created something of incredible value that would not only benefit the properties of his clients; it would benefit anyone who used them! There are a number of issues common to struggling and unprofitable property management companies and often with multi-‐family properties themselves: high expenses, high employee turnover, a constant struggle to collect rents, court hearings with residents over rent or security deposit matters, disorganization, delinquent accounts, and much more. Without a systematized plan to follow and training in how to operate correctly, these issues steal profits and contribute to poor company culture. Lack of effective operational systems will reduce profits, create a dysfunctional workplace, and eventually it will destroy the company. It often also causes property owners to lose their properties through foreclosure, receiverships, etc. Whether you are frustrated with the disposition of your team, the disorganization of your office, inflated expenses, unrealized revenue, or you simply work too many hours managing properties, we have the answers for you. Our systems have proved that change can be had in any business, and we guarantee they will work for you.


Benefits of Streamline PMC

• Fully digital operating systems – All of our systems are paperless. • Online payments for residents – Payment processing portals save labor. • Lowered expenses – Increased efficiency translates into reduced expenses. • Increased revenue – Accurate accounting practices, reducing lost rent, and

identifying additional revenue streams will all add to yearly gross revenues. • Spotlight reports for continuous oversight – When logging into your software

management account you will immediately be presented with up-‐to-‐date information on delinquent accounts, upcoming vacancies, and more!

• Reduced delinquent accounts – With our communication systems residents are notified daily of any delinquencies, escalating late fees, and they are shown the benefits of paying on time.

• Reduced errors – Systems we implement for you reduce errors thus saving both time and money.

• Improved effectiveness – Our systems will translate into a high rate of effectiveness and efficiency in every area of your business.

• Reduced employee turnover – The effects of making your business a systematized business will translate into a more desirable culture. Employees stay where they are well treated, well trained, and the job functions makes sense. Additionally, increased revenues and decreased expenses will allow for attracting more long-‐term employees.

• Simplified contractor oversight – Well informed contractors paid on time will provide better services and reduce your time needed to oversee them.

Although we understand certain businesses contain inherent complexities due to the nature of the business, we have built our success by creating simplicity and transparency in all aspects of our business. Our success has developed by the stripping away of complexities, implementation of streamlined and sustainable systems, and training and building a team that knows how to be independently dependent on their uniquely developed skills. We believe in investing in team members, encouraging their growth, and rewarding their successful efforts. We will train your team and your property systems to function independently with a limited time investment from you. By implementing systems that continually present you with spotlight reports, you are enabled to view rent roll, delinquent accounts, all upcoming vacancies, and any other information you wish to review with the simple click of a button. We look forward to helping you streamline your business, simplify your operations, and capture significantly more net revenue through your multi-‐family communities!


Mission

Streamline PMC will systematically evolve all elements of your community, resident culture, and business to become effective, organized, streamlined and profitable. We will help you build a forward thinking, purposeful team that generates as much cash flow and long-‐term wealth as possible for property and community owners.

Mission Goals

1. Systematize and digitize all resident contracts, payment systems, and communication.

2. Increase gross revenues, reduce expenses, and help owners move from working in their business to working on their business.

3. Streamline office operations, maintenance services, and team operations. 4. Achieve and maintain 100%+ occupancy (yes 100%+ is possible!). 5. Never, ever fail to collect rent!

Vision

Streamline PMC sets the standard in streamlined, effective, profitable, and

sustainable property management systems.

“Success Simplified”


Founder’s Bio

Andrew Studebaker, founder of StreamlinePMC, has acquired, sold, managed, consulted for, and streamlined properties since 2005. He thoroughly enjoys the challenge of business and his passion is consulting and training others how to efficiently manage multi-‐family communities. Andrew loves to golf (and watch professional golf), play both indoor and outdoor games, read historical fiction, and travel. Andrew and his wife Britany have one son, Emerson, a baby on the way, and a rambunctious family dog Raleigh, a Goldendoodle.


Strategic Areas of Focus and Service Plans

Full Service Consultation Plan

(Minimum 8 weeks) This plan consists of a complete review of existing operations, key action item list of issues, change implementation including staff training, financial systems upgrade, digital documentation, website and online payments, and licensed documents.

• Areas of Improvement – Before proceeding with consulting services or management services, our team will meet with you to understand areas of your business you deem to be problematic. Based on your input, our team will compile an initial list of targeted problem areas, the systems and procedures we will implement to correct these issues, and a timeline for accomplishing this.

• Financials -‐ Before proceeding with any consulting services or management services, our team will review your historical financials (P&Ls, Balance Sheet, Cash Flow) and existing processes to identify a targeted increase in financial efficiency, increased revenue, and decreased expenses you can expect to attain based on the implementation of our processes and procedures.

• Culture – How you communicate your vision and train your team, how and when you pay your team and sub-‐contractors, how you screen potential residents -‐ all of these ultimately affect the financial stability and culture of your company. We will first outline for you, and then train you, in a step-‐by-‐step implementation of improvements to institute a culture of trust, accountability, and efficiency for team members and residents alike.

• Community Aesthetics – Community aesthetics plays a vital role in attracting the most desirable customers. Net revenue is not only generated through gross income but through preventing losses as well. A proper customer base will reduce losses.

• Become Owner Operated – If you wish, we can train you to manage your properties without engaging a property management company thus saving you 5-‐15% of gross revenues annually by enabling and training you to become engaged, efficient, and streamlined in managing your communities.

• Become Digital! – In today’s world, efficiency is key. We help you digitize all leasing procedures to increase efficiency, reduce errors, increase organization, and standardize practices. This will give you a continual up-‐to-‐the-‐minute view of your entire community’s financial performance.

• Acquisition Preparation – By implementing our systems, policies, and procedures, you can prepare for seamless and profitable sale of your community or acquisition of other communities. A systematized and profitable business is a highly desirable business.

• Online Payments –Implementing the property management software we use and integrating it into your website allows residents to make payments online for automatic deposits into your accounts. The benefits generated through these systems, especially reduced labor costs for handling payment processing, will increase NOI (Net Operating Income).

• Document Licensing – We have developed and compiled a digital file of all leasing and ancillary documents you will need for daily leasing operations. These licensed documents are included as part of our Full Service Consultation Plan.


• Team Member Training – Your office staff, “team members” as we like to address

them, are vital to the success of your business. We review employment and sub-‐contractor positions, review hiring and employment procedures, redefine roles if needed, hire replacements and fill roles if necessary, and train the team on processes and procedures. These new systems will become part of your daily routine forever changing the team dynamics of your business.

• Office equipment systems – As your business shifts to being digitally operated, it is paramount to use proper technology to ease stress, increase efficiency, and streamline your workload as well as the workload of your staff. We will review, suggest necessary changes, acquire needed computer equipment (cost not included), and set up new office systems to enable maximum efficiency of daily operations.

• Budget – We will implement a budget for you with fixed and variable expenses as well as capital expense reserves. We will train you to review your budget to understand how, when, and where to make spending adjustments to achieve your financial goals for your business. Within the systems we use, reports are automatically generated on a weekly, monthly, or yearly basis to enable the consistent financial monitoring of your business.

• Bookkeeping – With proper systems, practices, and procedures in place, you or a trained bookkeeper can account for income and expenses on a weekly basis with only a few hours invested. You will be provided with an in-‐depth chart of accounts with an easily understood overview for consistent, clear, and effective bookkeeping.

• Financing – Proper financing is vital to achieving long-‐term financial success. We will review your financing, suggest any necessary restructuring, and refer you to preferred lending institution contacts for refinancing if needed.

• Property Insurance and Risk Mitigation – Your property insurance premiums are based on many factors including programs you do or do not institute at your communities to mitigate risk. We will review your property insurance along with a licensed risk reduction manager and will suggest necessary changes to your policy to obtain the right balance of risk and premium reduction while retaining the necessary coverage. In almost every case this is a guaranteed area of savings!

• Fair Housing – Knowing and understanding Federal, State, and Local Fair Housing laws and ordinances and how your business operates within the correct parameters is essential. We will organize and implement fair housing training (any extra cost not included) with your local fair housing authority and provide insight on how to effectively operate within fair housing guidelines.

• Leasing Video – Residents should NEVER be allowed to blindly sign a lease without understanding what they are committing to. By requiring residents to have at least a basic understanding of their lease, you establish a relationship of respect and boundaries. One of the most effective ways to convey a basic understanding of your lease to your residents is to create a short, concise, and informative leasing video. We will facilitate creation of your community leasing video (video production costs not included) for residents to watch prior to signing lease.

• Additional Services -‐ Manage any desired remodels/improvements in conjunction with licensed local builder at an additional charge

Cost and Payment – Request our Cost of Services document.


Daily or Weekly Consultation Plan

We will complete the first two steps of the standard consultation program, Areas of Improvement and Financials, along with any other items you request. We will provide you a timeline for completion and our charges will be by the week. Cost and Payment – Request our Cost of Services document.

Property Management Program We will implement all of our consultation services and continually manage your communities to the best of our ability. We will provide on-‐sight staff if necessary. We charge a straight percentage of gross revenue to manage your properties. If you wish to obtain more information about our property management contract, we would be happy to provide you with a quote along with a copy of the contract. We provide our Property Management services through our broker, Towne Square Real Estate. Two of our team members, Andrew and Jack, are licensed Realtors ® through Towne Square Real Estate.

Property Acquisition and/or New Business Startup

• All property sales or acquisitions are handled through Towne Square Real Estate, our brokerage firm.

• We can also provide our full Consultation Programs for new community acquisitions/startups. Contact us for details.


Historical Success

100% occupancy rates We have been able to generate 100%+ occupancy rates at every community we have managed through diligence, hard work, and attention to detail. We have attained 100% occupancy by the 2nd year at each property we have managed and have maintained 100%+ for every year thereafter. Yes, you can attain 100%+ occupancy levels! 99.9% successful rent collection history To date, we have successfully collected rent in full on every account we have managed with only one exception in 2012 – and we implemented a policy to prevent the cause of that exception’s recurrence! This is verifiable through our year-‐end tax accounting, our financials, and our attorney. Although we periodically must send legal notices to residents in order to collect rent and more rarely must file a hearing with the courts, we have instituted systems and procedures that allow us to continually monitor all accounts and precisely communicate with residents in order to efficiently and effectively collect rent in full. Accounting/daily bookkeeping – IRS audit In 2012, we navigated an IRS audit of the properties and personal records of a property owner we were contracted by. Therefore, our financial records for those properties were subject to the IRS audit. This resulted in a “No Change” and there were no transactions found to be in error in any financial statement or journal entry we were required to provide. This is verifiable through our year-‐end tax accountant who assisted us in the audit.


Streamline PMC Gross Revenue and Cash Flow

Historical Success Examples (Cash flows for these examples are after all expenses, debt service, AND capital expense reserves!)

Property A

5 year recap of our success: 164% increase in Gross Revenue Last year under previous management:

Gross Revenues: $85,833.74

Under Our Management: First year Gross Revenues/Cash Flow: $131,686.95/-‐$36,483.48

Fifth year Gross Revenues/Cash Flow: $226,826.04/$50,635.06

Property B 4 year recap of our success: 36% increase in Gross Revenue

Last year under previous management: Gross Revenues: $333,556.58

Under Our Management:

First year Gross Revenues/Cash Flow: $402,483.38/$53,603.99 Fourth year Gross Revenues/Cash Flow: $455,510.59/$93,405.56

Property C

2 year recap of our success: 51% increase in Gross Revenue Last year under previous management:

Gross Revenues: $514,702.00

Under Our Management: First year Gross Revenues/Cash Flow: $670,420.18/$92,316.10

Second year Gross Revenues/Cash Flow: $778,776.16/$161,902.98

Return on Cash Example: Streamline PMC assisted in and negotiated the acquisition and financing of 4 communities (through 3 separate transactions) with only $843k of an owner’s privately held funds invested. In 2014 those properties cash flowed $219k after all expenses, debt service, AND capital expense reserves. In 2015 they are projected to cash flow over $311k after all expenses, debt service, AND capital expense reserves. That is a 36.9% Cash-‐on-‐Cash NET return annually with equity being generated in addition!

Documents

Streamline PMC Pamphlet