Buying a Property that is Managed

[Patrick Soukup]

I've been marketing to absentee owners, run down properties and properties with favorable zoning for some years now. It has been a great way for me to grow my portfolio at prices that make sense for my goals. I recently came across a property in which the owner responded to one of my pieces of marketing. He had his attorney review the contract I sent to him and agreed to the terms and conditions. 

I then found out the property was managed. The management company was not happy that I had gotten one of their properties under contract and didn't go through them. Part of what I offer owners is not paying sales commissions. 

We close on this property next week. I am reflecting on the process and am trying to determine how I would go about this in the future. Do I pump the breaks when I hear the property is under third party management and go through the management company? My initial thought is that, this individual had his attorney review the contract and still felt comfortable moving forward and I need not worry about the effected management company.  What are your thoughts?

[Aaron K.]

Screw the management company, if they have a sales clause in their management agreement they can take it up with the owner, however they should not be able to hold their clients hostage if they want to sell.