Differences in the USHI Management approach:
Several startup companies have decided to vertically integrate the home purchase and rental management process, requiring significant staffing and overhead.
Our group has decades of experience in efficiently deploying capital in large scale community developments. We have perfected the science and art of managing sub contractors on a large scale to keep costs low.
After deep analysis USHI has decided to focus our management energies on:
a) The market selection, negotiation and purchase of homes, and developed builder lots, which is where we add most investor value.
b) Developing close synergistic relationships with dozens of carefully vetted Property Management Companies.
Given that USHI will operate in at least 15 South East markets we have decided to contract the services of established Property Management Companies (PMC’s) to manage the rental units under our supervision.
We conducted intensive due diligence on many property management companies throughout the South East in a series of meetings. Their skills and knowledge are mainly local. Therefore we have selected an initial 30 PMC’s, which manage in total over 30,000 rental units, and received eager letters of intent that they will manage the properties allocated to them by USHI according to our standards and conditions.
They are also now highly motivated to bring to USHI housing offers which meet our written criteria.. We believe that vertically integrated competitors will pay a price for competing with strong established Property Management Companies in that they will not benefit from the ‘deal flow’ these ‘connected’ local operators will originate for USHI. Most of these local Property Management Companies have important local banking relationships related to REO homes. Banking relationships are important in optimizing the acquisition process and controlling costs.
Our group already has management operating in 7 South East cities selecting and making bids on homes, leveraging the knowledge and resources of local PMC’s.