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Updated almost 10 years ago on .
Establishing a system for out of town investors
My mentor has made his living with 30+ rentals and a very successful cleaning company. I own 2 SFHs and have begun my career very strongly under his wing. We have a great system in play for financing, renovating, and tenant placement. He does some property management on the side, but its not his primary ambitions.
Together we have an opportunity to do some local investing for 2 out of town colleagues... one from LA and one from NYC.
I'm trying to figure out the best setup for establishing a property management firm to cater to these types of individuals. Here is the standard property management fees that I have identified:
Free - property identification and email list; this will include number analysis
$100 - inspection/tour fee per property selected from the list; this will include photos/video
2% - Fee due at closing; 1% if over $100k
10% - monthly rental charge
The other missing factor here is that we bring a tremendous value to the table with our property identification and renovation team. We are very good with both. Renovating will be a major part in these acquisitions. I need to be able to figure out how to charge for our established system of nuts to bolts.
Any guidance or suggestions for properly setting ourselves up for success?
Thank you in advance