Any value in Oklahoma City?

Question

Hey there, fellow real estate enthusiasts! I'm Aaron Mesmer, and I'm thrilled to be diving into the exciting world of real estate investment, starting right here in the heart of Oklahoma City. My focus is on exploring the value in both multi-family and single-family properties, leveraging the expertise of my trusted real estate agent. As I shape my investment journey, I'm currently on the lookout for a reliable lender, efficient property management services, and insurance info. If you've got any insights, tips, or recommendations to share about the Oklahoma City market or building a solid real estate team, I'd greatly appreciate your input. Let's connect and learn from each other as we embark on this rewarding adventure!

Ben Scott · Answer

Most common problems Account Closed are putting a band-aid on a bullet hole when it comes to repairs, trying to 'make it work' with tenants who are always a slow pay and tenants not knowing how their homes work (i.e. change AC filters, clean condensers, where water shut off is,) and things the tenants can do to avoid repairs.

Michael Smythe · Answer

Account Closed

Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Doug Spence · Answer

Account Closed in Tulsa is your go-to if you decide to invest in Tulsa as well.

Rhett Tullis · Answer

while you may see some lowering of rents in multi fam i am doubtful that it would impact much of the inventory you see on the market in okc.  I am also doubtful you will see a crash here in okc as there is already a bit of a housing shortage.  for things to crash we would need to see an oversupply which I am not really seeing right now.

Ben Scott · Answer

Hey Account Closed! Do you live in OKC or just planning to invest here. I'm a local agent and PM. Happy to connect. Oklahoma is a landlord friendly state and still one of the more affordable markets relative to housing costs vs median income.

Account Closed · Answer

Hey Ben! Thanks for the reply. I live in Edmond. It’s great to make your acquaintance. As a PM, what do you think are the most common problems you see with the properties and tenants you manage in okc?

I was just reading the warning email about multi family properties forecasted to crash first, so now I’m looking for a small single family home.

Randy Rodenhouse · Answer

I think the Oklahoma City area is a good one. In fact I just invested in a distribution center in Oklahoma City as a limited partner. In addition, I have several mortgage notes in that area and one going to foreclosure on August 24 in Oklahoma City. If interested in the location please send a colleague request and we can connect.

Any value in Oklahoma City?

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