Quote from @Nathan Gesner:
Quote from @Devin Collins:
Going from zero to 50 is a huge leap. You have no experience. You don't even know if you'll enjoy managing rentals, let alone 50 of them. You probably don't even know if these are low-risk or high-risk properties. And you are partnering with someone you know, but probably don't know well enough to say whether this partnership will work or not.
This is a great opportunity, but it's also a great opportunity to fail hard.
This move is the kind of move I would make, but that's because (a) I work harder/smarter than most, (b) I latch on like a pit bull and won't give up until it's successful, and (c) my life track record is one of performing better than most in everything I've tried (except dancing).
I won't tell you to walk away, but I will tell you to be prepared for a long, difficult learning process. I highly recommend you start with an attorney to get your partnership established. Understand what role each person plays, who has authority to make decisions, how to exit if things change, etc. You'll also need a good CPA. With this many rentals, you'll want to educate yourself on property management, starting immediately. You could read books, but you may want to invest a few thousand into real education from National Association of Residential Property Managers (NARPM) or maybe even hire a coach to help you set up the business, develop forms, create policies and procedures, as well as learn the basics of state law, how to screen applications, how to find quality vendors, etc.
I hope it works for you.
I am personally assessing all properties, I currently run the largest residential remodeling company in my area, I’m an insurance adjuster, my partner is insurance agent and I am a mathematics major; I reckon we can assess risk fairly well. I am excellent with people;I am empathetic, fair, and honest. I’m confident I will be awesome at it and thoroughly enjoy the job. I have multiple crews of guys trained and ready to flip all these for a fraction of the price it would cost most folks. We are cut from similar cloth Nathan; I tend to excel at anything I set my sights on, I do not quit, and fight hard for what I want. I also can’t dance. I do appreciate the advice and intend on having a lawyer drafting the partnership (I will maintain controlling interest and simply profit share with partner long term and investors short term till I can pay em off). We have folks to “mentor” us and I absorb knowledge like a sponge. I’ll check out the NARPM too, thanks. We’ve got a couple secretaries already for other businesses(until new person is trained), the purchase comes with existing office space, and all our stuff is on quickbooks/notion. I’ll seek CPA advice (to make sure I don’t miss anything) but I file my own taxes. I’ll hire it out if it’s too much of course, I know my limits. I’m sure I’ll have many questions along the way and will post them as I go. I appreciate all advice; whether it’s a warning, something to look into, or even how it typically goes day-to-day.
