Asset Guardians is a leader in providing Reserve Studies and construction management in Missouri. We are looking for joint venture partners in other states.
For our partners, Asset Guardians will provide the software and training to produce Reserve Studies. In our 1 week training in St. Louis, employees of the appointed joint venture partner will be given training in data entry and takeoff of data for a Reserve Study. Each employee will go through the process and will produce a finished Reserve Study report.
Asset Guardians will provide all the software and contract systems. Each partner will produce Reserve Studies data in the area assigned. The data on our forms will be transferred on the internet to Missouri. We will produce the finished product and transfer back to the partner for presentation to the client.
There are no license fees or franchise fees. The partner arrangement is by contract with Asset Guardians. Partners will be responsible for payment of air transportation and lodging to St. Louis and for the purchase of a laptop computer for each employee.
Asset Guardians will install the software required and provide training in all facets required to deliver the finished Reserve Study report and make client presentations. The final product consists of a 3-ring binder with tabs and color charts and tables containing the data. Specific recommendations are made in the software that produces the cash flow projections with suggested assessments required for each unit. Prices of Reserve Studies depend on the size and nature of each project. Typical prices range from $3,000 to about $10,000.
Clients receive a binder and a digital copy of the Reserve Study reports. Asset Guardians will keep in touch with each client and provide an annual update for 3 years. The update will include revised financial reports reflecting changes in financial parameters (inflation, investment returns on capital, and updates on new construction provided by the client). Reserve Studies are generally considered to have a life of 3 years. A new study will be quoted to clients at reduced prices. Partners should expect to retain client and issue update.
Asset Guardians will invoice clients for payment and take all risk on collections. Partners will be paid by Asset Guardians on delivery of finished binder and report to the Client. Partners will be required to make an initial meeting with client to set targets and parameters for the Reserve Study, and for delivery of the final product to the client and a 1–2 hour meeting with the client at an annual owner’s meeting.
Partners will make bids for each job. Asset Guardians will review each bid and accept, negotiate, or reject. Partners will be paid on job completion for 80% of bid; the balance paid after the presentation of the annual owner’s meeting, if it is requested. Partners will receive general marketing support from Asset Guardians. This includes the website and marketing collateral. Partners must make follow-up calls and close sales. Work can start part-time and can be coordinated with other work.
Reserve Studies are now required by law in some states. We expect the requirement for Reserve Studies will continue to increase. National Banks are providing loans to communities with Reserve Studies completed. Asset Guardians has connections with national banks and can make connections for clients/partners.
Partners must have employees with substantial construction experience as general contractors and the ability to make detailed physical inspections of properties. Construction includes multistory wood frame and high-rise multistory with elevators. Community sizes range from about 20–20000 units.
The Reserve Study report is also applicable to purchasers of multifamily, retail and office properties and their lenders and multifamily management companies. These markets have not been included in Asset Guardians current marketing plans.
Other business activities of Partners can be combined. This joint venture arrangement can be considered with property management companies or general contractors. General contractors providing Reserve Studies will have made contacts with decision makers and have knowledge of pending work. This may prove to be an advantage in additional construction jobs.
Management companies could use Reserve Studies as a closing tool on new management accounts. They could quote Reserve Studies on existing accounts. Associations with Reserve Studies will show increased unit resale value over competitors.
For more information on a Reserve Study partnership, contact Kris Kern via email or call him at (314) 637-0660.