Arixa Capital interviews Jerry Wise, President of BRAD Management. A firm that seeks to add value to every property under management, working closely with ownership to reach for each property’s full potential.
Learn more about BRAD Management: http://www.bradmanagement.com/
What does Brad Management do?
We mostly buy value-add multifamily properties on the West Coast. There are always deals that come from somewhere and it’s all about relationships with brokers that understand that you’ll execute and hope to at least get that first look.
A lot of times you get into a deal that other people don’t want because they think there’s a problem that they can’t solve, like an environmental problem, or a rent control issue, or they just simply run the property forever and can’t figure out how to move it from point A to point B and that’s where we come in and sometimes make it happen.
We buy multifamily from $3 to $20 million, again, along the West Coast that are value-add deals. Mostly buildings that have been held by their owners for the last 20 to 30 years and need a spruce up.
What kind of returns are you looking for your investors?
We find that most investors who put money with us are not looking for their money back, they’re just looking for the return to keep coming. Instead of buying a project and selling it and pay the taxes, we usually exchange our properties into other properties and continue on that path of value add and it becomes a good long-term equity.
Our general target is an 8% current yield with a 15% overall annualized return to our investors.
What matters to you most in a lender?
There are plenty of lenders that will give you all you need upfront but they don’t execute on the backend so you have to make sure your lender is on the same page as you, and when you need something they can work with you and are flexible and that’s important.