Over the years, I've had many people ask me what the most important thing is about real estate investing. Everyone assumes the correct price, location and timing of the market. Over 1300 real estate transactions have been completed primarily for investors around the world. I can confidently say that property management is the most important part of investing. Real estate is not a one-size fits all business.
2. Over the years, I've had many people ask me what the most important thing is about real estate
investing. Everyone assumes the correct price, location and timing of the market. Over 1300 real
estate transactions have been completed primarily for investors around the world. I can
confidently say that property management is the most important part of investing. Real estate is
not a one-size fits all business.
3. You can make mistakes on price, choose a poor
neighborhood, or hire an inefficient contractor, and still
be successful. You could lose your shirt if you hire the
wrong property manager. Real estate investing is a
complex business. Location, price, and rehab are all
important. You can make mistakes or experience a
decline in a neighborhood, but still get a positive return
on your investment via positive cash flow. A good
property manager will protect your investment over the
long-term.
The next question is, "How do I find a good property
manger?" Here are some tips to help you choose a great
management company. It does not mean that you will
manage your property.
4. Refer a friend. Refer a friend. Ask them about their
current management company, the names of people
they use, and why they changed. Ask them what they
love about their management company, but also what
they dislike about them. Although they may be able to
place tenants well, their communication skills are not up
to par. Without communication, your company is
doomed! Investors need to have access to their
management company. It is very frustrating to receive a
few emails or a message and hear only crickets. At first
you assume that they are busy and will get back to you
shortly. Investors start to panic when they don't hear
back from them for a while. Is the tenant gone? Was the
management company stealing my money? DID MY
HOME BURN? Although the majority of these statements
are false, a good property manager will reply within 24
hours to your inquiry.