Asking Property Manager for Contractor?

Question

I talks to a property management company & their manager, naturally they have their own contractors. Do you think it is a good idea to ask the property manager for their contractors contract because this would mean that they are giving up some profit as their contractors will work directly with me instead of through the management company, right?

Mike Cumbie · Answer

Hello Account Closed

You are more than welcome to say to your property manager:

"Hey, I picked up a house that needs some work, do you know a good person for carpet I could call?"

"Hey I have a set of steps I need taken care of on a flip, do you have someone you would recommend?"

They may very well say "Yeah call John over at Speedy Happy Construction" Tell him I sent you and he will take care of you.

In that case you are helping him and yourself, you most likely won't get his pricing but you can start your own relationships on other projects. Once it is all rehabbed and ready to rent  sending it to that same property manager is good business as well. Once you have a property manager working on a property though, let them do all aspects of that property (it's why you hired them).

Alex Craig · Answer

As a property manager, it has taken me years to develop the relationships that I have where I get beyond 50% discounts from retail from individuals that do a A+ job.  While developing those relationships, I have taken losses and learned the hard way.  I would not be willing to give that up.  A good contractor who values his clients business would not be so keen on someone going around his boss.  The advantage and the way I grow my business is my ability to secure pricing that my clients can't; if I give that up, then why even use a Property Manager.  You mention you would lose your PM's trust if he would not give that up.  As a PM, I would not trust a individual who called me up wanting my list that personally cost me thousands over the years.  As a PM we look for win-win.  Seems you are looking for a one side relationship.  PM's are in business to make a profit just like you are in business to make a profit.  It is win win when you get great service and great pricing.

Fred Heller · Answer

If I'm reading this correctly, what you're asking is that the PM turn over his playbook to you, for free. Why not just walk into some local restaurant and ask for the recipe for their special dish? That's essentially what you're doing.

PMs spend years cultivating relationships with contractors. This benefits you because it means the PM gets lower prices and priority service when there is something that needs to be addressed. And you just expect him to turn over the fruits of these years of work to you, for free? For all he knows you're planning to use his information to start your own property management business. Or, more likely, use his information to self-manage and cut him out.

I'm not saying that my contractor list rises to the level of a "trade secret." If you were my client, you'll see their invoices when I bill you for the work. And I would be happy to have you use any of my contractors for any your flipping projects. But to do an end run around me where my contractors are concerned; well, that's just not cool.

"Friendly and trusted" runs both ways. I would consider you neither if you demanded that I "give away" my contractor list as a prerequisite to doing business with me. It's not a good way to start a relationship and I would politely suggest that you take care that the door doesn't hit you in the ass on the way out.

Robert Farris · Answer

Account Closed suggested.

Good luck!

Robert Farris · Answer

Account Closed, is this the type of win-win situation you are talking about? Do most PM companies offer this type of service?

Good luck!

Account Closed · Answer

Huh. I can't believe i actually forgot about the in house team part. Noted

Account Closed · Answer

Ok, it's either my English is not good or some major misunderstanding keep popping out one after another. Heard my idea, i find a PM, told that person i would like to build trust & relationship with him to see if i should let that person manage my future properties. So i ask who is their contractors so i know what advice in repair & replace i should expected. After all i want to know should i trust in this PM & his/her contractors. Yes, i will ask for their track record, system in place, experience and other criteria in looking for a PM company. As for the other investment i had said, it mean that since i know & trust the contractor, i may want to directly call them and ask them to renovate a property for a flip purpose, or something similar. That's all. I failed to see how this misunderstanding happened or what i did wrong here. I simply cannot see it.

Account Closed · Answer

Ok, it's either my English is not good or some major misunderstanding keep popping out one after another. Heard my idea, i find a PM, told that person i would like to build trust & relationship with him to see if i should let that person manage my future properties. So i ask who is their contractors so i know what advice in repair & replace i should expected. After all i want to know should i trust in this PM & his/her contractors. Yes, i will ask for their track record, system in place, experience and other criteria in looking for a PM company. As for the other investment i had said, it mean that since i know & trust the contractor, i may want to directly call them and ask them to renovate a property for a flip purpose, or something similar. That's all. I failed to see how this misunderstanding happened or what i did wrong here. I simply cannot see it.

Account Closed · Answer

I don't know what i had indicate that saying i'm using PM for their contractor contract only. I'm actually going to hire a PM company to manage my portfolio but i want to know their contractors too for the repair & fix purpose, and if possible different investment purpose such as fix & flip, or BRRRR. All in all, i want a PM to manage my properties & if possible their contractors also help me in different investment. What is your suggestion Robert if i want to do an investment such as wrap or sub2 with a PM & contractors involved, i'm very new here?

Asking Property Manager for Contractor?

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