Creating air-tight budgets, which factor in all expenses, no matter how small, is no easy feat. It requires patience, commitment, and an eye to detail. Danny Randazzo, our guest today, certainly possesses these skills. As an asset management and budgeting whizz, he knows how to get the maximum NOI on properties. In this episode, Danny walks us through the current budget he is doing, and how his company creates multiple budgets to come up with a solid end number. He also talks about why they choose to do cost per door as well as the importance of being market-specific. Geographic location can shift several budget factors, so it is important to be cognizant of this. Along with this, Danny sheds light on the importance of having strict criteria that you stick to when looking for properties. We learned a great deal in today’s show, and we know you will too. Be sure to tune in today!
Key Points From This Episode:
- Learn more about Danny’s background and what he is currently involved in.
- Find out about Danny’s budgeting process on a new property he is underwriting.
- The differentiating line items to look for when creating a budget.
- Gary unpacks how location plays a role in budget differentiation.
- Why Danny believes focusing on one market and knowing it well will lead to greater success.
- How having strict criteria can help you stay conservative.
- Danny’s asset management superpower and his top tip for success.
“When we budget, we look at what the previous owner’s performance was. And we understand how they operated it because likely, them being a pretty decent owner-operator, their numbers shouldn’t be too far off.” — Danny Randazzo [0:02:48]
“You need to have a strict set of criteria and stick to it. If a deal doesn’t work because your criteria is conservative then it is not the deal for you.” — Danny Randazzo [0:10:18]
“Every single dollar counts when you are looking at asset management.” — Danny Randazzo [0:13:48]
Links Mentioned in Today’s Episode: