🤠 Happy Tuesday. Back from MassimoCon, and wow—what a week. Texas doesn’t hold back. Every place felt like walking into a Buc-ee’s—massive. Glad to be back home in Charleston, where things feel a little more my speed. And yeah, I rocked my cowboy hat on the plane back. Felt like a legend.

🍕 Two Charleston area restaurants closed this week. What’s going on with food and Bev? It’s disappointing to see this trend continuing. My gut says it’s still tied to the shrinking hospitality labor force—a lingering impact of COVID—with owners burning out trying to keep things afloat. Really hoping we start to see some stabilization in this part of the market soon.

The Scoop
You Might Be Leaving Money on the Table 

Let’s get real: not raising rents every year might seem like a good idea to keep vacancy low, but it’s not helping anyone—not your tenants, not your building, and definitely not your bottom line. Here’s why:

You’re Not Actually Helping Your Tenants. Not raising rents every year to market levels feels good in the moment, but it’s short-term thinking. When the time comes to sell, below-market rents drag down your property’s value. What happens next? The new owner has to raise rents quickly, and your tenants get hit hard. Nobody wins.

You’re Stuck in a Maintenance Rut. Struggling to repaint the building? Can’t afford that roof repair? These challenges often go hand in hand with another comment I hear all the time: “We’ve got a waitlist for our units.” But let me tell you, a waitlist isn’t a badge of honor—it’s a flashing sign that your rents are way too low. If your property isn’t generating enough income to keep up with maintenance, it’s time to take a closer look at your pricing.

You’re Leaving Serious Cash on the Table. If market rent is $2,000 and you’re charging $1,350, you’re leaving $650 on the table every single month. Over a year, that’s $7,800 per unit. Crunching the numbers further, that translates to nearly $80K in lost value per unit. Yes, per unit—not for the entire property. Those small gaps add up quickly, and they’re pulling straight from your bottom line.

It Hurts Your Property Value. When I value a property, I look at two things: what similar properties are selling for and what your property is earning. If your rents are below market, your income valuation drops, and that hurts your sale price. Here’s an example I ran this week:

See that gap? That’s the cost of leaving rents too low while the comparable properties are charging full market rates.

Also- vacancy is not your enemy. It’s part of the business. A healthy, high performing property can expect between 3-7% vacancy at any given time.

Not sure where your property falls on this spectrum? Let’s uncover its market pricing as we move into 2025. Fill out this form for a pricing estimate, and let’s make sure your property is working as hard as you are.

Fast Deal
30-50 unit opportunity 

Did a quick run-through on a mid-sized apartment opportunity that just crossed my desk. Looks like there’s some solid value-add potential with below-market rents and room for operational improvements. The location is in a growing area with strong rental demand, and there’s existing financing in place that could make the numbers even more attractive. Still diving into the details, but it’s definitely worth a closer look for the right investor. Let me know if you want to chat further.

Paul’s Market Journal

MassimoCon Debrief

Shoutout to Rod Santomassimo for putting together another incredible event. For those unfamiliar, MassimoCon is the top conference for CRE brokers nationwide. No vendors—just heavy hitters sharing their playbooks. Here are my key takeaways and action items:

1. Top Producers Say "No" More Often

The highest-grossing CRE broker in Australia wins 98% of his pitches. His secret? He turns down 65% of the listings that come across his desk. It sounds counterintuitive, but he only goes after deals where he can go all in and close decisively. That’s a powerful reminder to stay focused and be selective. It’s about quality, not quantity.

2. Bob Knakal's Challenge: Find Your Unique Edge

Bob Knakal posed a question:

It’s a deceptively tough question. A colleague at CBRE recently asked me, “Paul, why don’t you go bigger? Sell the 400-unit buildings.” At the time, I agreed—but it didn’t sit right with me. Bob’s question brought clarity. Why shouldn’t I focus on 400-unit buildings? Because I can’t yet say I’m the best in the world at it.

What can I be the best in the world at? Charleston’s small- to mid-sized apartment market. I know this market better than anyone, and that’s where I provide the most value. That’s my edge, and I’m doubling down on it.

3. Master the 8-10 Core Processes of Brokerage

This business is simple, but it’s not easy. There are only about 8-10 core processes we use as brokers. The trick? Get 5% better at each of them. Consistent, incremental improvements compound over time.

4. Think Long-Term: The 30-Year Marathon

Real estate brokerage isn’t a sprint to the next transaction; it’s a 30-year marathon. I’m here to be the broker you trust for your next five deals—not just this one. My focus is on building lasting relationships and delivering consistent results, deal after deal.

I went into MassimoCon with one goal: clarity for 2025. Now, I’ve got it. We’re keeping it simple, focused, and driven. We’re sticking to the basics and going all-in on what we do best—selling beautiful Charleston buildings. Charleston’s apartment market is ours to own, and in 2025, we’re making it happen.