All Forum Posts by: Nate Garrett

@J Scott hit the nail on the head.

If you are calculating long term ROI projections based on an overall expense ratio that is significantly lower than the 45-55% that J mentioned, you might be setting yourself up for disappointment in the future.

You should be able to lower that ratio by leasing, managing and/or maintaining the property yourself, but I wouldn't factor that into my ROI calculations. Many investors will, at some point as their portfolio grows, determine that time has become their constraint and outsource the management and maintenance to allow them to continue growing their portfolio and/or focus on more profitable uses of their time.

That is why it is wise to factor it into your calculations from the beginning. You're either paying someone to do it or you're paying yourself, but it's never free. Your time is valuable. Calculate accordingly.

@Jeff Rabinowitz 

It's also referred to as an "office exclusive". Most MLSs offer a form similar to this one whereby the seller certifies that they do not want the property listed on MLS. It sounds like this would work well for your situation.

@Jeff Rabinowitz 

Option 1: Target owner occupant buyers. Terminate the lease and get the property in move-in ready condition. List on MLS as usual.

Option 2: Target investors. Keep tenant in place, list property with a local broker as a "pocket listing" - IE, not on MLS. If the broker has access to a large group of investors and the property is priced correctly they should be able to find a buyer. You could stipulate that the Buyer can inspect the property with an accepted contract.

It is very difficult to market a property to a broad audience (IE on MLS) with a tenant in place. Tenants have little incentive for the property to sell and buyers won't see the property in the best possible light.

@Account Closed 

We have been using Propertyware to manage 200 units here in Tulsa for the last 2 years. We are satisfied customers. Their system is very full-featured and has allowed major increases in company efficiency. The bang has been worth the buck for us.

We also had them design and host our website. We have been slightly less satisfied with their web solution (so called "sites" module). They utilize a content management system which allows very few changes by the user. I do most of the tech for our company, so it has been a source of frustration that I can't make the changes I want without calling Propertyware and paying $100+ / hour.

Bottom line, I'm not sure I would recommend Propertyware if yours is small operation that you don't plan on growing, but if your objective is to scale your property management operation it is a very useful tool. I would consider using someone else for web hosting and have them integrate the Propertyware marketing module into your website.

@Shane Clevenger 

Do you already have a number of properties of your own that you manage?

Have you considered buying a smaller company to get your start?

In my opinion, it would be more difficult to start from scratch unless you already have a reasonably-sized portfolio to manage. Or you have sufficient cash to support yourself until the company reaches reasonable size.

Either way, I recommend you check out the National Association of Residential Property Managers and Landlordsource.com.

The former is our industry professional organization and they have educational offerings and conferences that support the property management industry.

The latter is a company run by a long-time property manager that offers products to property management company owners like templates for policy and procedures and employee manuals as well as information about how to buy and sell property management companies. Disclosure: I have no financial relationship with them, just a satisfied customer.

Hi @Jeff O'Neal 

Welcome to the forum. Plenty of folks from Tulsa here!

Regards,

Nate

@Kyle Critchnau 

I would recommend you get a licensed engineer to conduct a structural evaluation. It will cost you around $300, but it's money well spent, trust me. I've seen structural bids over $30,000. I've also seen houses in the Tulsa area that are literally falling apart because the foundation wasn't repaired.

We have had Joe Ramey do all of our structural reports for years, he's a stand up guy. You can check out his website or give his office a call at 918-836-0021.

@Michael McDermott 

Do a google search for "property management Philadelphia" and start browsing websites. Companies that have a position open will most likely advertise it on their website. Or you can simply call them and ask if they are looking to hire in the near future. You can also try the major job sites like Indeed, Monster, etc.

Most likely you would be starting in a leasing or assistant property manager role. For residential property management positions, these jobs will probably start at $35 - $45k / year, depending on education, experience, location, etc. I would expect the Philly area to be closer to the higher end because of the cost of living.

Entry level commercial real estate positions will probably start out a bit higher but also will be more competitive.

Consider getting your RE license out of the way to make yourself more competitive.

You probably won't find out if the principals of the company actively invest in RE themselves until the interview process, but you may get clues from the bios on their website or by doing a bit of digging.

The owner of the company will invest in you if he or she sees a benefit to the company. Take your time to find a company that has a bright future and provides opportunity for growth. Once you find the right one, focus on what you can offer the company more than what they can offer you. If you're working for the right company they will reward your efforts handsomely. 

I will offer a 3rd vote for what @Account Closed have said. Working for a property management company will give you insight into acquisition, rehab, maintenance, management, and disposition of investment properties.

You will know when the timing is right to venture out on your own.

@Michael McDermott 

Consider going to work in property management, especially for a company where the owner is also an investor.

You will learn a great deal about acquisition, rehab, maintenance, management, and disposition of investment properties. You will also gain insight into what others are investing in and the returns that they are seeing.