{"id":76485,"date":"2016-01-19T05:00:13","date_gmt":"2016-01-19T12:00:13","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=76485"},"modified":"2024-01-27T10:01:09","modified_gmt":"2024-01-27T17:01:09","slug":"2016-01-19-cant-afford-property-management","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2016-01-19-cant-afford-property-management","title":{"rendered":"Investors: Believe Me, You CAN’T Afford Property Management. Here’s Why."},"content":{"rendered":"

<\/b>I am not sure where the attitude comes from that that real estate investing is something that can be done \u201con the side\u201d or something that can be dabbled in. I suppose articles across the internet\u00a0are partially to blame. One article after another about success, and the apparent ease with which this success was achieved — that\u2019s enough to lead someone to erroneously conclude that success in this sport can somehow be an outcome of some type of passive activity and that real estate investments can be used as a nothing more than a diversification strategy within your otherwise predominantly paper portfolio.<\/span><\/p>\n

Thankfully, not all of us here at BP try to sell you a dream. Some of us actually tell you that this stuff is hard, both mentally and psychologically, and that chances are better than not that you will break long before you find any measure of success. In fact, if you listened to <\/span>Podcast 152: Building Wealth and Passive Income with Rental Properties with Ben Leybovich, Brian Burke, and Serge Shukhat<\/a>, I do believe that all three of us were rather blunt on the subject.<\/span><\/p>\n

Don\u2019t get me wrong — we were also blunt about the reality that real estate is in fact the best opportunity for most of us to build wealth on our balance sheets and financial freedom on our income statements. However, the \u201cread between the lines\u201d essence of it all is that real estate works only if you do it right — YOU do it right, not someone do it right for you!<\/span><\/p>\n

What You Need to Know About Property Management<\/h2>\n

You can\u2019t afford it! <\/span><\/p>\n

Related:<\/strong> 80 Smart Questions to Ask BEFORE Hiring Your Next Property Management Company<\/a><\/em><\/p>\n

Serge came out and said that much in the podcast, for all those who are willing to listen. Brandon Turner didn\u2019t reply anything, because there was nothing to be said — he\u2019s been trying to find a halfway decent PM for years now, and all it\u2019s doing is costing him time and money. For my part, I sure as hell know that none of the projects I\u2019ve ever bought could be transformed into what they are today under a PM.<\/span><\/p>\n

It\u2019s a blatant reality — none of us can afford a PM for anything we currently hold in our portfolios.<\/span><\/p>\n

Let\u2019s Look at Some Numbers<\/h2>\n

One of my favorite series of articles here on BP Blog is the one tracing the repositioning of the Symphony 10-unit. There have been 4 or 5 installments, and you can find them by clicking here<\/a>, here<\/a>, here<\/a> and here<\/a>. <\/span><\/p>\n

Just to summarize: <\/span><\/p>\n