Dan and I have dedicated years to building a company that excels in operating commercial real estate. This journey has been an evolutionary process, allowing us to create and refine our strategies. Through years of experience, we have developed unique methods and systems that truly set us apart in the industry.

What Is an Operating Company?

An operating company is a business formed to acquire, manage, and sell real estate. In our case, we are a privately owned operating company consisting of Dan Bonne and Justin Elliott. We are also vertically integrated, meaning we control our own management company. This integration came after years of struggling with third-party management. BLVD Management has significantly enhanced our capabilities, increasing our chances of success on any given transaction while limiting risk for our investors.

What Does an Operating Company Do?

The operations part of our operating company undertakes numerous critical tasks along the way. Here is a detailed list:

• Underwrite Deals: We thoroughly analyze potential investments to ensure they meet our financial and strategic criteria.

• Negotiate Terms on Behalf of Investors: We strive to secure the most favorable terms for our investors in every deal.

• Raise Funds from Investors: We actively engage with investors to raise the necessary capital for our projects.

• Source and Negotiate Debt: We identify the best financing options and negotiate terms with banks to secure optimal loan conditions.

• Manage the Management Entity: We oversee our management company to ensure high standards and efficient operations.

• Provide Investor Updates: We keep our investors informed with regular updates—monthly for at least the first year, then quarterly.

• Invest in Technology: We invest in technology, such as data subscription services and market-related intelligence, and develop software to make document access easy for investors.

• Construction Management: We oversee construction projects to ensure they are completed on time, within budget, and to the highest quality standards.

• Negotiate Service Contracts: We find and negotiate terms for essential services, including insurance, lawn care, and pest control, to ensure cost-effective and reliable solutions.

• Forecasting and Budgeting: We create detailed financial forecasts and budgets to guide our operations and ensure financial stability.

These functions are essential to our success and contribute to our ability to deliver strong returns while minimizing risks for our investors.

Fees in Action

You may be wondering how we can accomplish all of this, which brings us to the nuanced and sometimes stigmatized topic of fees. Our success relies on these fees, as they cover essential costs such as full-time staff, contract employees, rent, subscription services, and various contracts. While we’ve not faced significant pushback on fees, we do get questions, and we understand that some investors shy away from syndications because fees exist.

Think about it like any other business—whether it’s a coffee shop or a home services company. You’d want to invest in a business that is financially stable and has a clear path to profitability. The same principle applies to our real estate operating company. We encourage you to ask questions about how fees are utilized and where the funds are allocated. At BLVD, you’re welcome to visit our office, meet our dedicated staff, and see the daily operations firsthand. This is where that fee money goes—toward sustaining an operating company that consistently executes its promises.

If you have questions about our fee structure or how we structure our deals in general, please reach out. Let’s connect!

Thank you for reading and your interest in BLVD Ventures. We look forward to having you follow along. Feel free to reach out anytime with questions and connect with us further using the button below.