What's up Jump In Nation! We've got a special edition of #JumpIn Stories today, where I get the opportunity to interview a KEY member of my team in Indianapolis. Derek Gendig is my property manager and his company, EverGrow Property Management, has been instrumental in analyzing, assessing, marketing, leasing, renovations, and management. BASICALLY EVERYTHING I do in Indianapolis.
A quick history about Derek and myself. We first connected in 2017, but I already had a property manager overseeing my portfolio at the time. Well, many of you already know the story, but I had to swiftly change property managers. And after multiple interviews, I selected Derek and EverGrow to take over.
Derek, tell us a little about yourself.
I am an individual with an intense entrepreneurial spirit. I enjoy spending time with my family, fishing and playing soccer. With both of my parents born in Poland, I am first generation American. I’ve spent much of my life around construction & real estate. Hard work, honesty & passion are grass root values in my life. I find that I strive to be helpful to anyone I come in contact with. I thoroughly enjoy discussing new ideas with friends and strangers alike & encourage out-of-the-box thinking.
How did you get into property management?
There was a time that we were purchasing, rehabbing and selling 3 to 6 single family and small multi-family properties a month. Following up with the buyers after selling the homes, we were constantly hearing the same thing; the property was great, but the management companies they were hiring were woefully deficient, derelict or just outright criminal. Because these investments were not generating the anticipated income, our clients were not purchasing additional properties. We decided we had to provide better property management services than other local property management companies if we wanted to differentiate and grow.
Are you an active real estate investor?
We are active investors. Over the last 20 years we have purchased, rehabbed and sold over 1,000 properties.
How long have you been in property management?
We have been investors and licensed Real Estate Brokers for over 20 years. We have provided Property Management services since February 2012.
What’s one mistake that you see new investors make?
Purchasing the wrong class and/or type of property. The lower “C” and “D” class properties and small multi-family properties in these areas always look great on paper, but rarely perform as advertised. We always recommend “B” class properties (or better). These properties typically have a lower monthly cash flow but what they lack in cash flow is more than made up for in lower maintenance costs, higher tenant retention and area appreciation.
What do you like about working with out-of-state landlords? What are some challenges?
It’s taken years of financial reinvestment and hard work to develop the systems we now employ. It’s taken just as many years to acquire our experience. It’s taken an attentiveness to excellence to accumulate, refine, and draft documents that are of the highest standards. Having the chance to implement all of these things with people from all around the world and helping them to realize their financial goals is a special opportunity we have. We partner with investors to build mutually beneficial relationships. Being a part of their success and witnessing lifetime financial goals come to fruition is so special and is an extraordinary privilege we are very proud of!
The biggest challenge we deal with is that out-of-state owners rarely know details about their properties and/or tenants. They are typically missing leases, ledgers, keys, etc. This is largely due to poor detail and communication on the part of the persons they’ve hired to help purchase and/or manage their investment properties. Hiring the right person or company always ends up being the best decision both financially and for peace of mind.
What’s been your most challenging moment as a property manager?
In the summer of 2018, we took on management of nearly 80 “D” class properties over a 3 month period. This situation was the result of a meltdown of an elaborate real estate scam perpetrated in Indianapolis on out-of-state investors. Many owners were stuck with horrible, non-rehabbed properties, terrible tenants and city violations, penalties and fines. We took on this excessive amount of properties and over a period of a year we’ve worked with the owners to help them rehab, lease or sell their properties and make the best out of a terrible situation.
What are your greatest takeaways from that moment?
What are EverGrow’s key values?
What’s next for EverGrow?
Evergrow is the latest & greatest version of Indianapolis Property Management Inc. As we’ve grown, learned from our experiences, listened to tenant and owner’s input, we’ve committed to further elevation of all aspects of our company. This includes the management portfolio itself. We recognized that lower-end properties are very difficult to fill with quality tenants, manage and make profitable for owners. We’ve set a minimum rental rate threshold of $800 a month for the properties we are willing to manage. It’s not easy to turn down business but it’s required to provide the quality and attention to the properties and owners we do manage for. The next step for Evergrow is to increase our management portfolio with these new criteria with a focus not only on working with quality properties but quality Owners.
What’s your greatest real estate advice?
How can people contact you if they have any questions or want more information about your services?
Broker / Portfolio Manager
Evergrow Property Management Inc.
Office: 317-588-3300 x 102
Or on BiggerPockets – Derek Gendig
If you'd like Derek to analyze a property you are targeting as an investment, click on the link below and he'll provide you with a free report like this:
And there you have it folks! Check out these key takeaways:
THANK YOU Derek for sharing your story and taking time to connect with Jump In Real Estate and the community.