Episode #81: Managing Risk with Dustin Miles and Hayden Harrington

Today on the Real Estate Asset Management Podcast, we talk to Dustin Miles and Hayden Harrington of Momentum Multifamily about managing risk in the asset management sphere. We discuss the differences when it comes to managing a C-class versus an A-class or a B-class deal, as well the pros and cons of each class respectively. Dustin and Hayden share the ways in which COVID has affected their choices, as well as some of the invaluable asset management-related lessons they’ve learned over the years. Tune in for some useful tips and insights on how to mitigate risk and grow intelligently, instead of just growing for the sake of growing!Key Points From This Episode:Dustin and Hayden briefly introduce themselves and share their professional backgrounds.Pros and cons of managing A, B, and C-class deals from an asset management standpoint.How COVID affected each asset class respectively.How Dustin and Hayden track their assets by inputting financials against the proforma.Lessons they’ve learned regarding asset management.The importance of working with the right management company in the right area.The importance of considering the risk-adjusted return.Why Dustin and Hayden have abandoned C-class for the most part.How to mitigate risk and grow intelligently, instead of just growing for the sake of growing.Why they stick to buying property in the same region and working with the same regional.Their asset management superpowers: being detail-oriented, diplomatic, and team-oriented.Tweetables:"During COVID, we did see quite a difference. We had more delinquency, more bad debt, and all that on the [C-class] side. [A-class] was just a lot more stable, a lot more seamless, less peaks and valleys." – Dustin Miles [0:02:29]“We just want to mitigate risk however we can and grow intelligently – not just grow to grow.” — Hayden Harrington [11:57]“We’re not here to be right. We’re here to do what’s best for the business, for each other, and for our investors. That’s something that we keep a priority here at Momentum [Multifamily].” — Hayden Harrington [15:06]“It pays dividends to invest in people and understand who you're getting in business with and not just jumping at the first option or the cheapest option that comes along.” — Hayden Harrington [15:39]Links Mentioned in Today’s Episode:Dustin Miles on LinkedInHayden Harrington on LinkedInMomentum MultifamilyAsset Management Mastery Facebook GroupAsset Management MasteryBreak of Day Capital Break of Day Capital InstagramGary Lipsky on LinkedInBest In ClassGarzella Group