The time required to successfully manage even a single rental property is something many novice investors fail to take into consideration. The new or empty property must be cleaned, repaired, painted, and updated to be marketed at a profitable rental rate. It must be marketed and shown to prospective renters.
And the list of to-do's goes on.
Applications must be filled out and verified, credit scores checked, background checks run, deposits collected, leases signed, and move-in arrangements coordinated. Once a renter is in place, there are maintenance issues on the unit, the common areas, the amenities, and the grounds. Lawns must be mowed, leaves need to be raked, and snow must be plowed in a timely and efficient manner.
Simply put, property management is a 24/7 proposition and the time demands grow exponentially with the number of units under management.
When you ask any successful rental property owner what is the secret to their success, the overwhelming majority are going to tell you that it is having a professional property manager in place. At Fourmidable, we know that a good property manager can handle the countless details that come up with a rental property and allow you, the owner, to free up the most precious asset you have as a real estate investor – your time.
Allow me to give you a real-life example of one of the most active multi-family owners in Michigan. This owner now owns over 4,000 units, but that wasn't always the case.
In 2015, this individual owned a 24-unit complex in Eastpointe, Michigan. He had a desire to grow his business, but the time spent ‘self-managing' the one property he owned had deferred that desire. He decided to take a leap of faith when he purchased a 383-unit senior community in Southfield and entrusted Fourmidable to manage both his current and the new property.
His philosophy was simple: find a professional management company that focuses on customer service in the community. This would lead to income growth of the property and allow him to focus on becoming a profitable, growth-minded landlord in this area.
He needed a company with a proven record of reliable execution, excellent communications, and a shared vision for providing quality, affordable housing. Because his main office is in an international location, trust, communication and clear objectives have been the recipe for our successful business relationship.
Over the past three years, this client has added another 3,500 units to his Michigan portfolio and is slated to grow even more in 2019. Income growth and customer satisfaction has increased at each property. He is now free to spend his time seeking out new investment opportunities and growing his portfolio while his trusted management company handles the day-to-day management of his existing properties.
At Fourmidable, we specialize in managing, marketing, and leasing market rate rental properties, whether they be tax credit, senior and family government-assisted, public housing, middle class apartment communities, high-rise condominiums, or off-campus cooperatives. Our goal is to maximize and protect our clients' assets through effective property management, allowing them to free up all the time they need to meet the rising demand for quality, affordable rental housing.
On April 12, 2018, Mike Schocker, president of FOURMIDABLE, was interviewed by Kevin Price, host of nationally syndicated radio show, Price of Business. Here is an excerpt of the wide-ranging interview, which you can hear on Sound Cloud at https://soundcloud.com/user-759550640/4-12-18-michael-schocker-expansion-of-company-into-ohio-and-new-multifamily-properties
Kevin Price: Welcome back to The Price of Business. I'm really excited about having Michael Schocker back on the program. He's been on before. He's with a cool company called FOURMIDABLE.
And you guys have a huge footprint, not only in the Midwest where you and I are both from—every time we get together, we go down memory lane even though we both lived on different streets, but we were in the same neck of the woods, like you say. And so, Michael, love having you on the program. Kind of give us the story of your company. And man, you've got so much expansion going on. It's phenomenal.
Michael Schocker: Kevin, thanks for having me back on. I really appreciate the time. We are a Michigan-located company just right outside of Detroit. We actually just celebrated our 43rd year in business. And generally speaking, our business is to operate apartment communities in and around the country. So presently, we have roughly 10,000 units located in 13 different states.
A lot of that expansion has taken place over the last, say, four or five years. We're really getting a pretty strong presence down south—Tennessee, Mississippi. Interestingly enough, I know you're a Michigan guy, but we're expanding into your neck of the woods, and we'll be right outside of Corpus Christi opening a new property this summer. That's our first expansion into Texas. We are as far west as Oklahoma and as far east as South Carolina and Maryland.
Kevin Price: Yeah, but you're going to take over the world.
Michael Schocker: Well, I don't know about taking over the world, but we are definitely a growth-minded company. And it's an exciting place to work. And I work with just some wonderful coworkers that allow us to really take on more properties and expand our presence in the different markets.
Kevin Price: Love it. So, Michael, kind of give us a panoramic overview of the types of properties that you have.
Michael Schocker: When we bid on different properties and things like that, Kevin, one of the things I like to talk about is not only our lengthy experience, which I mentioned with the 43 years in business and the tenure of a lot of the employees here, my coworkers, is really, really pretty strong, so we have a lot of experience, but outside of that, we do have a diverse portfolio. So, we don't specialize just in what we would call market rate or conventional properties. We also specialize in tax credit properties. Senior housing, we have a big footprint in. We actually are a public housing management company as well, and we're one of the larger providers in the state of Michigan for public housing. We manage communities for Detroit Housing Commission, Pontiac Housing Commission, Romulus Housing Commission. So, besides the experience, we definitely have the diverse portfolio type that we like to push out there as we meet with new groups because you never know exactly where it's going to go and the types of different properties that are available for us to operate.
Kevin Price: What's the good news, Mike?
Michael Schocker: Well, the good news has to do with the expansion too. As I mentioned, we are opening a property this summer in Texas. I'm actually going to head down there next week, spend a little time in Austin for a conference. And then I'm going, like I said, to Bishop, Texas, which is just southwest of Corpus Christi. And we're going to see how that property's progressing. It's a new construction, so it'll be interesting to see how things are moving forward.
Kevin Price: Talk a little—explain the expansion. What do you see happening? And why is this happening? And again, congratulations.
Michael Schocker: Why do I see it happening is just that the rental market, and really all the geography that we operate. is just really that strong. So, investors are really putting their money back into multi-family assets, whether it's purchases or new constructions. It's just the safe way for investors to invest money nowadays. And so, from the business side, even though prices have gone up and the purchase price to buy these assets are getting more and more expensive, there's definitely still a strong demand for it, which helps companies like ours because when they do purchase these things, they look for a professional management company. And that's where we fit in. So obviously, the economy is pretty strong today. The rental market is just as strong as the economy. So that's just been a great recipe for companies like ours to kind of continue on our expansion.
Kevin Price: Yeah. No question about it. I really enjoyed our time, always do, Michael. We've got just 30 seconds. I want to give you a chance for final thoughts as we wrap it up.
Michael Schocker: Again, I work for an outstanding company. I really enjoy it here. We're growth-minded. We're really getting into the new markets, which my favorite part of that is I get to meet new people and come to new areas and learn about the culture and the background and everything else like that. That's probably my favorite part of the job, the travelling and meeting new people and seeing new things. And along with the business growth, it's just been a good couple of years for us here at FOURMIDABLE.
Kevin Price: Well, it's good always to have you on. Love hearing about your progress. I hope you keep us abreast. And when I come out to Michigan, I'm going to have to come check out your facilities up there when I get there. Kevin Price is your host. This is the Price of Business. Really enjoyed my time with Michael Schocker. The website—Fourmidable—that's a u in there in that four—fourmidable.com. Make sure you check them out. And, by the way, we are nationally syndicated on the Biz Talk Radio Network.
As a valuable member of the FOURMIDABLE team since 2017, Ami Wood heads a team that ensures the company delivers on a goal of overseeing a culture that is employee-oriented and high performing in every respect. That includes the guiding and managing of services, policies and programs at FOURMIDABLE in her role as Director of Human Resources.
Ami reports directly to the Chief Executive Officer and President and advises company managers about issues related to interactions with employees.
Her credentials—including being a member of the Society for Human Resource Management and the Michigan Council of SHRM—means she is equipped to bring information about the latest trends in the industry to the FOURMIDABLE team.
From recruiting and staffing, performance management and improvement systems, to employment, compliance and regulatory issues, Ami's duties cover all aspects of human resources.
It's the ongoing development of a superior workforce at FOURMIDABLE that Ami is most passionate about.
She spends her time outside the company volunteering at the Detroit Rescue Mission and the Bravo Foundation.
Technology is pervasive in today's business environment. How well we integrate that technology impacts our time management and productivity at work. It can also affect our quality of life at a personal level.
Over the past few years, hardware technology and software used in the property management industry has shown significant improvement. Smartphones, tablets, apps, and software offerings have once again transformed many office processes involving purchase orders, invoice processing, compliance software, resident utility billing, and check scanning, to name a few. In addition, interactive websites can now feature a property's current availability, lease rates, online application, electronic leases, and online chat with the leasing agent. Resident portals offer online resident payments, mobile-based service request management and community billboards.
The above are just some examples of value-added software used in our industry, but they can also come at a cost. Typically, these services are not all managed from within one software platform, therefore requiring additional user logins, more passwords to remember, and each user interface needs to be learned and mastered. Some may not integrate with the core property management / accounting software and therefore can require duplicate data entry requirements. This, in turn creates an additional task of keeping the data up to date in multiple systems.
We have been watching our industry's leading core software companies, such as Entrata, Yardi, MRI and Realpage make moves to stay competitive. Some are acquiring the value-added software companies, others are partnering with them, and one of the known software development leaders is building these value-added services from the ground up, right into their core property management / accounting software suite. The latter option provides the key to our technological future.
We are pleased to announce that after several months reviewing the latest releases of the leading property management / accounting software available, we have selected Entrata to replace AMSI at all of our conventional, tax credit and Section 8 properties. Entrata has designed their software with much more flexible reporting and also with the end users and residents' needs at the forefront of their design. One login, one password, and one user interface are all that is needed to navigate all of the marketing, leasing, resident management, compliance, online payments, check scanning, service requests and all other modules, thereby eliminating the need to use so many different software solutions at our properties.
We will be rolling out Entrata throughout 2018 and are excited about our enhanced technological future! Stay tuned for more updates………..
When children read, their lives become more enriched, families benefit and their futures are ultimately changed.
That was the key sense of mission behind the organization of a book drive held for the benefit of children at Carriage Circle and Woodland Heights, two public housing communities in the city of Pontiac.
With the cooperation and encouragement of the Pontiac Housing Commission, employees at FOURMIDABLE in June, with the help of their family and friends, reached out for donations of new and gently used books in an effort that was coordinated by the FOURMIDABLE corporate staff.
Children at both Carriage Circle and Woodland Heights will be receiving new books throughout the summer months. There will also be a reading contest for those aged 7-12, which is intended to stimulate their interest in reading even further. Prizes will be given to the children that read the most in the contest.
The donated books will be used to establish a children's library at each of the communities.
One of the best results when it comes to reaching out to the community, as in this book drive, it is destined to have lifelong significance to those impacted by the initiative.
A new study commissioned by the National Multifamily Housing Council has concluded the need for the U.S. to build some 4.6 million new apartments between now and 2030, a dramatic increase over the rate of apartment construction in the last five years.
The study, “U.S. Apartment Demand—A Forward Look,” was prepared by Hoyt Advisory Services, Dinn Focused Marketing, Inc., and Whitegate Real Estate Advisors, LLC, concluded that the number of apartment units would have to jump to an average of 328,000 new units each year, significantly higher than the average of 225,000 completions a year.
The housing bubble fallout that began in 2007 and ended in 2010 represents a shift in the numbers of former homeowners, many of whom continue to rent their housing.
The result has been a decline in housing affordability, especially in markets on the East and West coasts, one reason being that affordability typically is achieved only with greater density and smaller-sized units, while land-use policies and the political approval processes are typically adding greater regulation and restrictions to those same markets.
A shift in demographics, along with student debts and tighter lending criteria, are all signs of a substantial demand in rental markets. Adding to the dynamic scene in the study is the potential for policies that would impact immigration rates.
The fact is, any significant decline in immigration rates is likely to hurt the overall economy.
Metro markets that have strong economies also have significant population growth that results from people moving into the area, either from abroad or from other areas in the U.S.
Among the areas most likely to see higher demand for multifamily housing are the Southern states, driven by economic growth, low costs and diversified demographic growth. Texas and Florida are markets that are ranked 5 of the top 6 places in the study, with Phoenix, Atlanta, Raleigh and Las Vegas ranking in the top 10.
As some markets embrace growth, others will experience restrictions based on geography or policy, with the results usually coming in the form of higher rental costs and lower affordability. Conversely, markets where there are rates that are seen as high for both rental and for-sale housing risk losing population bases to lower cost areas.
States that have achieved healthy balance sheets and an educated workforce will continue to attract both individuals and firms from stressed markets that have increasingly unaffordable housing dynamics.
A couple of great “known unknowns” could come into play, one being how policy changes may impact the applicability of mortgage tax deductions and thus affecting the “own versus rent” decision for people who may drive future demand for multifamily properties.
Another could be how policy changes on immigration rates will play out. It is increasingly possible to see a scenario where immigration begins to outpace natural growth (births minus deaths) by 2023, accelerating in impact to a point where population growth could be less than half that of the last decade.
Jeri Hays, the CEO of FOURMIDABLE, is a remarkable business person, but it's not necessarily the subject of business that sets her apart and makes her someone that her colleagues tend to want to emulate.
Hays, who joined FOURMIDABLE in 1986 as Assistant Controller, has a heart for people and particularly the importance of having a place to live as a basic need that can often be served through public housing.
A graduate of San Diego State University, where she earned a Bachelor of Science in Business Administration degree (with a minor in Accounting), Hays is often called upon as an expert resource for advocacy groups and attorneys, successfully facilitating resolutions of complaints and requests from residents and applicants.
Professionally, she is a candidate for a Certified Public Manager designation and as CEO of FOURMIDABLE, her primary responsibility is to develop both short-term and long-term goals, objectives and strategies.
At FOURMIDABLE, Hays served as Assistant Controller for seven years before taking on the role of Director of Finance and Administration. She was promoted to Executive Vice President in 2004, a position she held for 12 years.
On a personal note, and one that reflects her passion for the importance of education, Hays set in motion an initiative that has since “taken off” at the company: a campaign to seek donations of new and gently used books for children.
New books were sent out to children at Carriage Circle and Woodland Heights, two public housing sites in Pontiac, throughout the summer break. And children ages 7-12 were given the opportunity to win prizes as part of a reading contest to see who reads the most books over the summer.
Donated books were used to establish a children's library at each community.
The book drive came as the result of Hays asking for children's books for her birthday, a decidedly selfless initiative from someone who clearly believed the greatest joy would come from focusing on the needs of others.
When it comes to honoring the achievements of our fellow citizens, it would be hard (if not entirely impossible) not to think of a group more critical to not only our future, but our heritage, as the men and women who serve in our military.
As we approach Memorial Day, our thoughts go to those who paid the ultimate price for their service.
While we certainly honor the fallen, it's also important that we not forget those who remain with us after completing their service to our country.
Those who are “Wounded Warriors” are very close to our hearts here at FOURMIDABLE. And while we play a modest role in supporting the national Wounded Warrior Project, we do so proudly and with the hope that as many of our fellow citizens will become aware of all the good our military have accomplished.
In the briefest possible terms, the Wounded Warrior Project connects, serves, and empowers wounded warriors by providing free programs and services that address their needs and fill gaps in government care.
Funds to support this enormously important cause are raised by various initiatives, and we at FOURMIDABLE are enormously encouraged by our colleagues who participated in last year's inaugural “Push-Ups for a Purpose” initiative.
Collectively, our employees raised $16,148 for “Push-Ups”—through challenges like the most push-ups done in a one-minute period, number of sit-ups done in one minute, how long holding the “plank” position, and how long holding a wall squat.
Our team gathered pledges from among their own networks for their effort.
As a nation, the contribution made by our veterans goes beyond the ordinary and it's the least we can do to contribute to a cause that not only recognizes those efforts but takes steps to “fill in the gap” when it comes to the needs of those who once proudly served in uniform.
We're happy to have played a role and we encourage others to do the same.
In business, we've also made it a matter of pride to look for opportunities to make life a little easier for our veterans to find housing that they can take pride in calling home.
Of note are two FOURMIDABLE managed communities that offer preferences and specials to veterans: Tall Oaks in Tupelo, Miss. and Fountain Square in Columbus, Miss.
We're also proud that many of our market rate communities offer rental discounts to veterans.
It's just another way that our FOURMIDABLE family can show its appreciation to the men and women who we collectively salute this Memorial Day.
By Jeri Hays, CEO, FOURMIDABLE
When the term “public housing” comes to mind, chances are it's not something that generates positive feelings or even memories about a personal experience. The fact is, the perceptions around public housing are really misconceptions that FOURMIDABLE, as the largest private manager of public housing in Michigan, are working hard to dispel.
You may know that public housing was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. But you may not know that such public housing comes in all sizes and types, from scattered single family houses to high rise apartments for elderly families. In fact, there are approximately 1.2 million households living in public housing units, managed by some 3,300 housing agencies, according to the U.S. Department of Housing and Urban Development (HUD).
The business of providing affordable, safe and clean housing – public or private – to individuals and families is one that FOURMIDABLE takes pride in doing every day.
Our reputation as a manager of multi-family properties is one that we've worked hard to achieve and we extend that reputation, earned through hard work, into our work with housing agencies delivering the very best experience for the people who live in public housing properties that we manage.
Of course, it takes a team to deliver the kind of performance FOURMIDABLE has achieved.
One of those key team members is Sabrina Gaddy-Bollinger, our Director of Affordable Housing and the current President of the Michigan Chapter No. 5 of the Institute of Real Estate Management.
Sabrina has been with us since 1995 and her reputation with our firm, and in the industry as a whole, is a stellar one.
Together, FOURMIDABLE continues to raise the bar when it comes to performance in the public housing sector, noted by our status as a preferred management agent with the Federal Department of Housing and Urban Development (HUD). In that respect, we've been called upon to assist when the government is faced with housing agencies that require operational assistance and we've been honored to step up to offer our expertise.
FOURMIDABLE continues to look for ways that we can give back to the communities that we serve, applying our expertise in the best way we know how—through diligence, attention to detail and a deep commitment to excellence in housing, one of the most basic of human needs.
By Michael Schocker
I've spent much of my professional career in and around the real estate industry, but it's a career, even before I joined FOURMIDABLE in 2008, that has focused on building relationships.
I earned my undergraduate degree from Wayne State University in 1994, majoring in geography, and then continued my education at Eastern Michigan University, earning a master's in geography, with an emphasis on urban planning.
At that point, I joined one of Michigan's largest residential developers, taking on a Sales and Marketing role, where I continued to grow for about five years.
A key pivot point in my career came in 2001, when I earned my broker's license and joined one of Michigan's most respected residential and commercial development firms, overseeing marketing and sales of new home and commercial products that averaged $40 million a year in revenues.
Seven years later, in 2008, I joined FOURMIDABLE, first as Residential Manager and Regional Supervisor and then Director of Real Estate Services in FOURMIDABLE's Real Estate Service division. Thanks to a great team, we were able to close more than $82 million in sales of multi-family and commercial properties.
As President, I'm now focused on the long-term growth of FOURMIDABLE, helping to lead the company in employee growth strategies and initiatives.
But it's relationships that are among my key passions.
Indeed, in more than 20 years in this industry, nothing has made me prouder than working with a co-worker and seeing them grow and develop to become an active part of the team.
Even today, my role as President allows me to focus on employee development and client relations. The business development side helps me continue to create new business relationships that will hopefully grow over the next 20 years.
It's helping others that drives me every day. It's my position that helps bring me closer to my goals in life and that comes from being able to enjoy the fruits of strong and long-standing relationships. I have always had a strong desire to go to work on a daily basis and be happy. This is a place where I can go to work and share a common goal with people that I am proud to call co-workers.