All Forum Posts by: Phillip Gainey

Well, I just fired two PMs in Memphis this year. Both manage hundreds upon hundreds of properties. So that could be considered "successful".

So I don't know. Maybe you just need to put your "shingle" out, at that will be enough. Eventually you will build up a clientele that will stay with you.

Who will your customers be? Out of state or local owners? If out of state, you don't have to worry about the client being able to drive by the properties to check things out. To see if fences are broken down, or the grass is waist high. You can keep them "at bay" for awhile at least. And depending on how far away they are, they're not likely to hop on a plane very often to check up on you . Won't be much cash flow for them to afford many plane tickets. Especially with the loss of rent revenue they experience due to nonpayment of rent by the tenants that weren't screened properly.

Of course, now there is email and such. So expect a lot of pesty emails from them. That can be a reall PITA! They actually think you have the time to keep them updated. You won't because the PM, apparently, is all about "VOLUME". So you will be busy building that up. Besides, you can just give them enuf info to keep them happy for the moment. If the poop really hits the fan, there is not much they can do. You will have a solid management agreement keeping you protected. And the local Realtor Board can't really do much. Besides, it's their investment, not yours.

Sounds harsh, but I'm the kind of jerk you will have to deal with in your new biz. Are you up for it?

PG

Wow! $500! That is cheap! Does that come with a view of the crack house next door? Please send me a brochure.

My address is:

Phil G. Shill
1456 Dang Fool Rd.
Insanity, BC. BC145E

Thanks aye!

:D

This is San francisco. Illegals aren't illegal there. In fact, you might want to research the legal ramifications for exposing an illegal alien there. You may get sued for discrimination.

PG

My advise would be to contact some companies out of your state (the further away the better) that offer "turnkey" properties for sale. That way, ALL the work is done for you. It's all taken care of. Property acquisition, rehab, management, accounting...etc. You can get properties that provide big time cash flow! Let them know up front you have $200k. They can provided you with excellent advise on how and where to spend it. Then just sit back and collect the checks as they come in by the thousands! If there are problems with your properties, little things like tenants, repairs, they will inform you. So there is nothing to worry about. :-)

Okay, obviously being sarcastic there. You are on the right tract. Join local REI clubs and learn all you can. Take your time! You are young and have your whole life ahead of you. There are three elements. Your current level of knowledge, amount of capital to invest, and the amount of time you have available per week. Do a self inventory, and move from there.

PG

Not very professional.

Most people won't take you very seriously.

OTOH, people throw junk mail away too.

We faced the same issue years ago with our carpet cleaning biz. We found, believe it or not, that passing out good quality magnets (just once per area) door to door (just place and move on, no bell ringing). Worked well.

Research has shown that people do NOT throw magnets away. They put them on the fridge, and forget about them. But each time they go to the fridge, their subconscious registers the message on the magnet. Then, when and if they need your service, they will end up calling you after forgetting how they even go the magnet.

Still get calls from magnets placed years ago.

Works for home services, don't know about RE.

I just read the rather lengthy "Code of Ethics" for one Board of Realtors. It clearly states that seller agents are bound by this code to present ALL offers to clients. Of course, the code also requires them to work in the best interest of their client and should advise their client NOT to accept because the offer, in their opinion is far below market value. If they tell them to accept the offer just so they can get a commission they have violated the code.

PG

Fine, but for the record, slander refers to verbal speech, libel involves printed material. In either case, libel in FALSE information. There is nothing in this or other threads I have posted that is not true. So it can not be "libel". negative feedback, but not libel or slander.

As for taking responsibility for my investing actions. I have. It was a mistake to invest with you in Memphis via the out of state route. I take responsibility for that.

You need to take responsibility for your sales action. As I said before, you sold a "package". Property, renovation, and management. It was referred to as "turnkey". You can't just pass the buck and blame the contractor, or PM or even the former company. You worked for them at the time. Your name is on the sales contract.

If you are going to enter public debate, you have to take the bad with the good.

PG

If it has nothing to do with you, I won't. If it does, as in this case, I will. I mentioned that your no longer work for IN. Please read my P.S.

I said you probably disagree with my contention that we paid too much for those properties. Evidently, I was right. You seemed to indicate so in your response to my post.

BTW, I spoke with Tom and he mentioned you had an email exchange. His opinion seemed to be that you were full of excuses and basically passed the buck. Blamed the contractor. But wasn't the contractor's services part of the "package" you sold?

PG

Maybe they should add the Shelby County eviction court to their list of stops. Meet some of their future tenants.

Wouldn't it be easier to join a local RE club. They'll tell you the truth about dealing with tenants there. No marketing hype. Also, you can develop contacts and meet "bird dogs" and buy the same REOs/SS/Foreclosures the turnkey guys buy. You could out bid them and still pick the properties up for way cheaper.

Members of local REI clubs can steer you toward good rehabbers you can hire for way less. IOW, cut out the middle man. Of course, turnkeyers don't want you to hear that. And if they sell you a "wonder, solid" property with high priced rehab and it needs a new roof in two years. Well, they had nothing to do with that! That's not their fault. Why, you must be a "Memphis basher"!
Ever take used car back to a used car salesman?

I guess what I am saying is deal with OTHER INVESTORS, not salesmen. Of course, this takes work and is difficult if you are out of state. Which brings up the whole question of whether an investor (especially a passively minded one) should even invest OOS.

PG

Jason,

Are you kidding? $500? Dog houses cost that much!

Please don't try to kid a kidder! :-)

PG