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Property management franchise
Is purchasing a property management franchise a lucrative business? I am looking to transition from another career not associated to real estate. I will be getting my real estate license because it is required.
Depends on the company and what you get with the franchise. It can get very expensive, so make sure you have plenty of overhead to cover cost, especially if the association charges a higher per door fee.
In my market you can usually buy or sell a door for around 1500.00 if that helps, this is very subjective, but a rough idea of the value you are getting if you actually buy an existing operating franchise.
There are very few franchises in property management and I don't know of any that are really worth the cost. I looked into one several years ago just to help grow my existing company. They wanted $45,000. For that price, I could hire two assistants to free up my time to develop my business on my own.
You're better off growing your company organically. If you're in a decent-sized market, it shouldn't take much to develop a successful business within a couple years. I know some people in Billings, MT that bought an existing company with 75 doors and they grew it to over 400 within four years and they did that one owner at a time with no big marketing scheme or anything.
Thanks Michael and Nathan.... I live in the Northeast and have spoken to a few of the major players in property management. They each have over 200 franchisees. In my opinion buying one of these franchisees would get you running out of the gate with all of the systems and processes in place saving you the time and pain in setting this up on your own. Thoughts?
@Robert Oramas yes, it will get you started much easier. However, there's a cost associated with that. If you're motivated and honest, you could build your own company for much cheaper. It may start off slower but it will cost you much less in the long run. It all depends on you and your abilities.