All Forum Posts by: Account Closed

Thank you all for the comments. Before my initial meeting I know this is a smaller 1-2 person operation. I have a few buildings myself and use buildium to manage. This business would lean more towards the book of business than a larger company with established systems as I would look to transition them into my systems.

Next week I will be meeting with the owner of a property management company in my area.  I've been trying to find compatibles to value the company, but I am falling a bit short.  I've talk to another property manager who purchased their company for 1X annual gross revenue.  I've looked online and have seen others that have gone for less than 1x.  I haven't met with the owner yet to find out the specific details.  I know I need to find out what type of contracts he has set up with the current customers.  I was looking for some insight on what else I need to get for information, how to value it, and what is a good defined multiple for gross revenue in todays market.

I'm trying to find some information on utilizing the SBA 7A loans for a property that I would use as an office and rent out the remaining rooms as residential rooms.  Does anyone have any experience with this?

I'm looking into starting a property management company while I'm still working my full-time position.  I've been looking at different courses, books, certifications.  Does anyone have suggestions on a practical guide to opening a property management business?  

One thing I'm taking into considerations is that I believe the properties are selling at a nice discount. My plan is to cash out refinance and use proceeds for my next deal. Another issue is that one of the properties that has a heavy discount has an interesting title issue that will take a couple months to correct. The price of the house is at a place that is attracting cash buyers and will be gone before conventional loans. My bundle owner finance enables me to close the deal now and not have to wait.

These are free and clear of loans and liens. Reason for selling is that these are the last two properties left in owners portfolio in location. Owner sold local portfolio of smaller buildings to build large complex closer to hometown. The location and rentals are in a college town. Terms: 20% down 20 year with a 5 year balloon 8% interest on $110,000 for both properties Income for both. $4275/ month with current all inclusive leases. I like the deal. I guess I was wondering if there was anything in particular I should look out for. Price is $10k cheaper due to bundle buy of two homes and seller financing.

Thanks guys!

Sorry, $500 to $1,200.  @Robert S.  

I'm at a similar stage at this point.  I will be visiting my local small business development office.  They hooked me up with a mentor.  This will help get me on the right track and so I don't spend hours researching in the wrong direction. Your skill set is in real estate.  Do what you do best and find efficient ways to get through the muck!

@Robert S. it just about double the premium.  I was getting quotes for another building that I am purchasing and it seemed to be the case there as well.  I asked if I could just have the amount that I owed and she said yes.  I got a call back from her boss later that evening asking me to call back...I haven't called back yet.  I wanted to get some outside info before. 

@Percy N.  Made by horse and buggy.... 100 years is the estimate.