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All Forum Posts by: Bryant Hull

Bryant Hull has started 3 posts and replied 14 times.

Post: How much should I value the purchase of a property management company?

Bryant Hull
Posted
  • Real Estate Investor
  • Huntington Beach, CA
  • Posts 14
  • Votes 12
Originally posted by @Sky Mikesell:

haha let me clarify... 

Property rents for $1000 per month. 

Management company fee is 8% of gross collected rents = $80 per month

as a buyer of a property management company you would pay 1-1.25 for that income stream... which is an annualized number. 

$80 * 12= $960 *1 =  $960   or  80 * 12 = $960 *1.25 =$1200    that would be the "value" of that one account.    obviously if they are a property manager they are hopefully going to have more then one account so you would quantify that number. :)   

that should make more sense then my first post. 

 This makes sense. Essentially it's 100%-125%  of annual gross management fees. Thank you for your feedback!

Post: How much should I value the purchase of a property management company?

Bryant Hull
Posted
  • Real Estate Investor
  • Huntington Beach, CA
  • Posts 14
  • Votes 12
Originally posted by @Sky Mikesell:

1% of gross management fees for one year is standard fair here in north carolina.  i would imagine you could get away with a little less in your area based on facts rents are higher. 

 So if I am buying a company that is grossing $100,000, according to your math I should only pay $1000. 

I would do that deal any chance I could get not sure if you are joking or if you misunderstood the question.

Post: How much should I value the purchase of a property management company?

Bryant Hull
Posted
  • Real Estate Investor
  • Huntington Beach, CA
  • Posts 14
  • Votes 12

One year of net? What are you suggesting? Thanks

Post: How much should I value the purchase of a property management company?

Bryant Hull
Posted
  • Real Estate Investor
  • Huntington Beach, CA
  • Posts 14
  • Votes 12

I am aggressively looking for property management companies for sale in Orange County CA. I have seen pricing vary. It typically falls into 6 months of gross management fees on the low end and a year and a half of gross management fees. 

Has anyone seen any different ways to value these businesses?