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Meet Stuart

My name is Stuart Nordhoff and I am a communications major at Indiana University Southeast. Now, you might be wondering how or why a communications major ended up working in an accounting and property management office like the one here at Berkshire Hathaway Parks and Weisberg. Well, I am right there with you in trying to figure that out.

One might think that working in an accounting office could be boring or just repeating the same task day in and day out. I will admit, I was one of them and boy was I wrong. There is no such thing as a quotidian task in this office. Each individual member of the team plays their role and somehow at the end of the day it all just comes together. I will admit, there are days when I leave and I feel the whiplash of bouncing from one task to another and being pulled in several different directions, but I would not trade that for anything.  In a stressful environment such as this, it is imperative to be able to blow off some steam and crack a few jokes here and there; we are the pros here in this office, just ask anyone. As earlier mentioned, we all play a certain role within the office, you can see it in our distinct personalities. We all click together and are most certainly a family. If you ever wonder what it would be like to step out of your area of expertise and maybe even out of your comfort zone, work in an office where everything is new. I did and I am not disappointed.

I have learned so much already in the few months I have been here with this amazing company. You may also find that you can help in ways that you did not even imagine. Not being an accounting major, I have a different and outside way of thinking when it comes to problems that may present themselves in the office.  It is encouraging when you can shed light on the solution because of the approach you take.

While I work mainly on the accounting side, I do dabble a bit in the property management division and I now have a new respect for the people that choose this career path. Never have I seen a more hardworking group of individuals. You do not realize how much work a property manager truly does. Our property managers do so much to keep our tenants, owners, and vendors happy and they excel at it. I have the highest regards for this company and all those that work here. It has been an amazing and knowledge filled journey and I cannot wait to see what the future holds.

Thinking of Investing in Real Estate? What You Need to Consider

The number one objective I see from investors interested in single-family and multifamily rental property is maximizing their cash flow. No one, including me, would dispute the importance of cash flow in investing. However, you also need to consider hiring a property management company to increase your return on investment. Here’s why.

What A Property Management Company Should Do

First and foremost, a property management company should protect the underlying asset, the property. The property is a bundle of value. Much like wanting a rate of return on a stock, or money in the bank, the last thing an owner wants is for the value of their asset to decline because it’s not taken care of properly.

This goal is somewhat at odds with maximizing cash flow. For that reason, we always start with the thought process of preserving the value of the property first.

 

It should always be kept in mind that in property management the quality of the property will be reflective of the quality of the tenant. If a property is run down, the yard looks bad, and the roof needs repair, it is likely the tenant attracted to the property will be the tenant who can’t rent a property in really good shape.

A great property manager is trying to balance these two competing objectives: preserving the value of the property and good cash flow. Routine inspections, good tenants who pay their rent on time and reliable vendors who promptly report issues they identify, can have considerable positive impact on property preservation.

Maximizing Your Return on Investment

In Louisville, Kentucky, without the advantage of leverage, well maintained properties will achieve a reasonably strong cash flow and preserve the underlying asset value in the range of an annual rate of return, after fees, of 5.5 to 7%.

To increase that yield on invested capital you have two options. The first option is that you can scrounge around and buy properties substantially below their underlying value and improve them slightly. The yield will increase because you own an asset worth much more than what you invested. The true yield on the value of the asset is still within 5 1/2 to 7% range, but because you bought it below value, your yield increases.

The second option to increase yield is to use leverage. Leverage is where you borrow some of the money from the bank. For example, we have $100,000 property and generates $10,000 a year of rent. If this property has a 35% expense ratio, the yield on the $100,000 property is only 6.5%.

However, if you take that same $100,000 house and you put $25,000 down on and you have the same $10,000 of rent and the same 35% expense ratio, you have $6500 dollars of cash flow before you pay the mortgage payment. Assuming a 30 year mortgage with a 5% interest rate, the principal and interest payments are approximately $4,800 per year. The resulting cash flow $1700 on investment of $25,000 generates better yield, now add in that a good portion of that payment being made each month is principal, in other words it’s building wealth, and the yield is getting in the neighborhood of 9%.

This strategy does have some risk, and should never be undertaken without the advice of a good investment counselor and Realtor, but as you can see this can be a way to build wealth and increase yield.

For more information on ways to manage property and build wealth through investment real estate, please reach out to our Property Management Division.

Meet Mika Heinze

I began my career in Property Management at Berkshire Hathaway HomeServices Parks and Weisberg, Realtors in August 2014. I am the face you will see in the property management department. Each day I interact with tenants, vendors, agents and homeowners. While at Berkshire Hathaway Parks and Weisberg Realtors I’ve also been able to obtain my real estate license.

My primary job responsibility is to maintain the service request work orders. I handle each work order submitted by our tenants or homeowners and assign them to the appropriate vendor, I will also follow up with the tenant or vendor until the work has been completed. Each day is something new.  I also schedule move in and move out inspections for the properties we manage. I post the vacancies on our company website. I am also a leasing agent with the company, which involves scheduling showings for our available rental properties, process rental applications, executing leases, collecting rent and security deposits.

Before my career in Property management, I worked at Citi Group as a Credit Specialist at the Blakenbaker location. I worked there from 2001 until 2011 until the company relocated their employees overseas. After being with a company for so long it was difficult to figure out what my next job was going to be.

I was offered a position at a Louisville property management company in 2012 and there I learned my passion for property management. I’ve always thought of becoming a licensed real estate agent. I must give credit to my brother, he’s a retired Marine and became a license Realtor in North Carolina. He supported me during my crazy days of studying for the real estate exam and answering all of my annoying phone calls. Dave Parks was also a huge influence to me, he kept me motivated and helped me build my confidence in an area I was so unfamiliar with.

I enjoy working for Berkshire Hathaway Parks and Weisberg. The environment feels like a big family here. There is lots to learn here and the training the company provides to their agents is awesome.

I am a Louisville native Realtor with experience in property management. I can be your one stop realtor!

My property management portfolio consist of single family houses, condos, homeowner associations and commercial property. I work with great people every day with a lot of knowledge and experience. 2017 has been an exciting year as we launched our new property management website and our new property management software App-Folio.

I am married with two sons (15yrs old and 9 years old) they both play sports, and they keep me very busy. I am a huge Louisville Cardinal Fan! I have a new puppy Rottweiler and guess what he’s name is? Yeap you guess it, I named him Cardinal.  I love the color red and anything Louisville.  I like to volunteer at my sons schools and activities and I’m a breast cancer supporter. My mom is a breast cancer survivor and she’s my hero.

Fun Fact about me: I love roller-skating and we have a pet African Tortoise.

Contact us for all your real estate needs. We are eager to help!

Meet the Interns

Take two college sophomores, and give them the opportunity to take what they have learned in the classroom and see it used in the real world. You would have this summer’s Accounting and Property Management Interns here at Berkshire Hathaway HomeServices Parks & Weisberg, Realtors. This summer the interns are being challenged with large projects and some daily tasks that improve the organization and efficiency of the department that cannot be otherwise handled within the boundaries of a normal day. The interns’ main goal is to create systems that improve the department, long after they leave. This year, the interns are affectionately known as the problem children, or Kate and Luke for short.

Hi my name is Luke I am a sophomore at Indiana University Southeast and have had the privilege to be one of the interns here at Berkshire Hathaway HomeServices Parks & Weisberg, Realtors. My summer projects include an audit of all our commercial properties, organization of hundreds of keys, and creating spreadsheets allowing us to work through problems and create better systems. Beyond these projects I also have daily work to accomplish, such as answering the phone, posting rent, mailings, and learning about and updating our new property management software, Appfolio. This summer has already taught me more than I could have ever imagined I would have learned. I owe a lot of that to credit the amazing staff that I get to work with whom have gone out of their way to make sure that I have adapted into my role as quickly and smoothly as possible.

And I’m Kate, a sophomore at the University of Kentucky. Go Cats! Working for such an incredible team and with a boss who takes every spare moment to teach, has been such a blessing. I cannot begin to sum up how much I have learned. My daily tasks of posting all company bills to QuickBooks, putting confidential files in the shred bin, and cleaning up excel sheets have taught me how to do things a little at a time. My big projects of writing the department’s job descriptions, implementing this blog you are reading, and organizing the agent files have taught me how to meet deadlines while working on other things. I hope my improvements will outlast my time here, and I know the skills and lessons I have been taught will stick with me long after I have left.

 

You must be wondering why we’re called the problem children since you have now seen all of what we do well. Let’s start out with the fact that two people who had never met one another treat each other like brother and sister. Our boss Shannon is like our mother, and breaking up our quarrels. Every day is certainly an adventure.

Sincerely,

Kate and Luke

Making Strides

In the last year, Berkshire Hathaway HomeServices Parks & Weisberg, Realtors® has taken strides to move forward with the company and with the Property Management Department. This January, we transitioned into a more advanced software system and launched our updated property management website. Our showing and rental application process has been streamlined, and our property managers are now able to access the software they need on the go. This allows our staff and property managers to help clients, old and new, with an improved performance and ease.

We’ve taken on many new projects and with a job title of Project Coordinator, I’ve been involved in many of them. We’ve revitalized our social media presence on Facebook and Instagram. Check us out! We’ve introduced new members to our Property Management Team and increased our available rental properties and Homeowner’s Associations. Transitioning from a company who only accepts money orders or checks, we’ve embraced the beauty of online payments. Now in addition to being able to pay with a money order or check, clients can pay rent or HOA dues online with an e-check, debit card, or credit card on your online portal.  This happens instantaneously with our books, making sure that if you make a payment online it will automatically be posted to your account that day.

Let’s not forget about work orders. If you have something break down or need to be replaced, give our office a call or log into your online portal and send a request from the comfort of your home. Even if the charges for the repairs will be yours, the tenant, we can utilize the online portal to schedule improvements. A preferred vendor will contact you within days to make sure your home or apartment is in the best possible condition. Training classes for all of our Real Estate Agents and bimonthly meetings for our Property Management Team assures that every issue is tackled and resolved.

Managed by brother/sister team, Dave and Judie Parks, Berkshire Hathaway HomeServices Parks & Weisberg, Realtors looks after each client, Real Estate Agent, and staff member as if they were a member of the family. With Dave Parks heading our Property Management Department, owners and tenants alike are sure to be satisfied. One-on-one progress meetings and a focus on individual and company growth allows us to provide you with the best possible customer service. Each representative of our company cares that your issue is resolved and that you leave knowing we are as invested as you are in having your needs met.

Improvement oriented, we strive to meet your needs and grow as a company.

Best Wishes,

Hallie Striby

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