Hadar talks to Kevin Gardner from Multifamily Utility Solutions about how Multifamily Cable Contract can increase your Net Operating Income, add value and put more money in your pocket.
The right to serve your customers with cable TV and Internet services has value. How much? Let us help you find out! If you have at least 20 units there is a chance you are not realizing revenue that you could be. If you have 100+ units then you are certainly missing out on revenue opportunities. #MultiFamilyRealEstateInvesting #CableContracts
Subscribe to the MFI Holding & MHI Mastermind Channel: https://www.youtube.com/c/MultifamilyRealEstateInvestingMIHMastermind FREE eBook & Video Course GIVEAWAY: https://mfiholding.com/free-ebook-multifamily-investing/ MIH Mastermind: https://MIHMastermind.com Instagram: @MIH_Mastermind https://www.instagram.com/mih_mastermind/ Facebook: @MultifamilyMastermind https://www.facebook.com/MultifamilyMastermind/ Hadar Orkibi – Principle at https://MFIHolding.com Is a US Citizen, full-time Property Investor, and Trader. Investing in Multifamily Apartment Buildings, Residential and Commercial Real Estate for over a decade. Hadar has participated as a guest in NZ and US Real Estate Investing podcasts and is a leading Multifamily Investing Mastermind facilitator with http://MIHMastermind.com
00:00:06 – 00:01:12
Introduction to cable contracts and NOI
00:00:06 – 00:01:12
Aadhaar introduces himself at the Multi-Family Mastery Conference in Orlando, alongside Jake, Gino, and Kevin Gardner from Multi-Family Utility Solution. They discuss how property owners can increase their net operating income by utilizing cable contracts. Kevin explains that many people mistakenly believe cable contracts are only necessary if they’re paying for resident services, but there’s more to their financial benefit.
00:00:39 – 00:01:40
Negotiating cable company property rights
00:00:39 – 00:01:40
The discussion explains that cable companies require permission to access personal property. The service assists in negotiating access rights, potentially securing additional revenue for property owners. It is clarified that the infrastructure typically involves working with the existing cable company rather than installing new satellite dishes or DSL internet equipment.
00:01:10 – 00:02:11
Updating expired cable agreements
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The speaker explains that long-term agreements related to properties often expire, necessitating the negotiation of updated agreements. They describe the commission-based fee structure, emphasizing that payment is only received if revenue is generated, with no upfront fee. Revenue can be earned from cable companies under this arrangement.
00:01:40 – 00:02:40
Revenue models from cable contracts
00:01:40 – 00:02:40
The discussion explains two types of revenue models when dealing with cable contracts in apartment communities: a one-time upfront door fee or ongoing revenue share based on business growth. It advises that when purchasing a property with an existing cable contract, one should have the contract reviewed to check for expiration dates or auto-renewal clauses.
00:02:10 – 00:03:03
Reviewing cable contracts when buying property
00:02:10 – 00:03:03
The speaker discusses auditing entitlements to ensure all benefits are received, emphasizing that contracts remain with the property even if ownership changes. They highlight the common presence of an assignment clause in contracts, which requires the contract to be assigned to new owners, noting from their experience of over two decades that such clauses are always included.
00:02:37 – 00:03:41
Assignment clauses in cable contracts
00:02:37 – 00:03:41
Kevin discusses the importance of leverage in securing a cable contract, stating that while the bare minimum number of units required is 20, this alone is usually insufficient. He explains that 20 units can be effective if combined with another contract involving 100 or more units, highlighting the benefits of larger scale agreements.
00:03:09 – 00:03:27
Minimum units needed for cable contracts
00:03:09 – 00:03:27
The speaker mentions a preference to maintain at least 75 units on average and expresses gratitude to Kevin and the audience.
