Looking to do property management... what brokerage firm to join?

Question

Hi guys,Was hoping to see what biggerpockets members suggest I do as a newly-minted licensed real-estate broker who is looking to start in property management. In north carolina, you need a broker's license to do property management, so I just finished getting the license. However, before I can be a broker in charge and run my own show (my eventual goal), I need to work for at least two years under some brokerage firm. Should I work somewhere like exp or keller williams given that these brokerages don't specialize in property management? Should I look for some smaller property management firm? Would a property management firm even take me, considering I would be their competition once the two years pass? Thanks for all the advice!

Pat Lulewicz · Answer

@Vlad Krokhmal I would go work for another PM firm to see how they operate, SOPs, professionalism, and be able to show experience to prospective clients when you go live in 2 years. Otherwise, they'll ask you for your experience and you'll only be able to say you've held an RE license for 2 years and took some tests. Take this time to work on additional accreditation as well.

Michael Smythe · Answer

@Vlad Krokhmal reach out to a few and ask!

Vlad Krokhmal · Answer

I have some experience managing my own properties and some seminars I've attended, but you are right, there is a lot more to learn. You are right, it probably does make sense to spend the next 2 years learning more before diving in myself.

Michael McVety · Answer

Ok, great top hear. It is similar to Florida.Maybe consider whether a non-PM real estate company may want to have you work on starting a PM division OR just hang your license, learn the PM business through narpm.org and then get ready in 2 years. Good luck!

Vlad Krokhmal · Answer

I just need 2 years of full time experience (under a broker in charge) before i can become myself a broker in charge and manage properties without supervision. The full time experience can be either with a property management firm or a regular brokerage. You are right that, no matter what, for the next two years I can't really manage properties on my own. So really, my question just boils down to how best to spend the next 2 years, given the eventual end game i want. Thanks for your help!

Michael McVety · Answer

Hi Vlad.If you want to setup your own management company, I am not sure if another management company would have you hang your license there, learn what you can from them and then go setup up a company. Different professional groups (such as narpm.org) can give you amazing training for that.If you are supposed to be supervised prior to you becoming a broker, maybe working with a sales company as a broker- associate would be the right way to go. Whether you need to setup a property management section or not to "qualify" as a broker for 2 years, I am not certain about the law in North Carolina. In Florida, it is different but you can put your license with a real estate company for 2 years and then setup your own real estate company if you choose to.

Nathan Gesner · Answer

1. The only people that can truly answer your questions are the local brokerages. Call around to see who is willing to take you on.2. I think it's a mistake to start PM from scratch on your own. You probably don't have experience managing rentals for others. You don't have the forms, processes, marketing, software, and other tools a professional would have. As already stated, many real estate offices will not allow property management. Others don't want to touch it because it's completely foreign to them. Others will reject the idea because you can't produce an income for their office and will likely be a taker, not a maker.My suggestion is to get a job with an established property management company. You'll get a nice paycheck immediately, and you'll learn more in two years working for them than you would struggling to build a business on your own. Once you've proven yourself for a couple years, then you will have everything you need to step out on your own and build a sustainable business quickly.

Vlad Krokhmal · Answer

Thank you, that is good insight. Any ideas for what to look for in a property management shop that would even take me?

Jonathan Greene · Answer

Many standard brokerages do not allow property management. If your focus on using your license is in property management, you should go to work for a mom and pop brokerage that has a property management wing, not the big box. eXp definitely does not allow property management.