Ep 294: Property Management and Hotel Investing with Jesse McCue

16 Replies

Are you happy with the current state of your real estate business? If you’re like most people, the answer is no. On today’s show, we interview property management superstar Jesse McCue and dig deep into how he's become Maine's top property manager as well as a successful RE investor along the way. Jesse shares how he formed a partnership with a successful business to become an owner of the company, as well as how he bought a 67-unit hotel off of a tip from his electrician for half of its appraised value! You'll be amazed as he describes a strategy that is "better than BRRRR"—and most importantly, the number one question you need to ask a property manager to find out if they are the right choice for you. If you want to learn how to put fundamental business skills to work in your investment business, this is a show you do not want to miss!

Listen here or on your favorite podcast app.

Originally posted by @Syreeta Beads :

I really enjoyed the podcast. Did the motel return to daily and weekly rentals only?

 They are currently doing weekly and monthly rentals (some are efficiency type units). No daily rentals. 

Great episode, as usual. Another great example of using your sphere to find deals. It doesn't just have to be through agents or wholesalers.

Side note: I always listen through the end of the episodes, but especially the last several with David's nicknames for Brandon in the sign-off. Top Notch!

I really enjoyed this podcast. It really hit on something that I know I need to do but put off and never get done, which is to put proper systems in place. I know what systems and how to do it but always procrastinate or start and don't finish putting them into place. This was a good reminder for me. Thanks! Aaron

@Jesse McCue Thanks for the podcast. It was very inspirational and provided a lot of good information. You mentioned getting started in property management as a way to build networks and pipeline as well as starting small. That's very good advice and looking at the bigger picture vs  like you said "not huge dollars" in property management. Love to hear how you got past that 10-20 unit stage in into the next 50-100 unit stage, as that seems to be the threshold I am currently stuck at. 

@Drew Y. Thanks for the positive feedback, I hope my story was helpful.  I just checked out your profile and I think the fact you own investment properties yourself gives you a lot of credibility among other investors looking for management help and that is something I would not be shy about sharing.  The jump from 20 to 100 can happen fast if you can show investors you can handle their property in a professional manner.  Simple things like a professional website, ability to take payments online, a real tenant application/screening process, maintenance tracking, after hours call system, financial reporting, etc.  Which most of this goes hand in hand with using a good Property Management software.  Once you can show people this you might be surprised how the jump will come with investors who have portfolios for 20-50 units each.  And these type of investors will talk to their friends.  Our growth was exponential once we showed we could handle large complexes instead of just small multi-units.  And the large complexes can actually be easier to manage because their size can often justify a dedicated maintenance person.    

@Jesse McCue Thanks for the advice. Sounds like one thing is after you have your based established, make sure that you are prepared for the growth. Like you said one step back in order to take two steps forward. It's definitely been hard for me making that transition to paying someone instead of doing it myself. 

Thanks for paying it forward with the podcast and advice. Hopefully I will be in the same position in the near future. 

Cheers

@Drew Y. thanks.  There is also creative ways to add help during growth.  You can try and find someone willing to work in a combined role.  When we were small everyone did everything.  For example, an hourly rate to perform maintenance and on commission to rent units, or an bookkeeper who rents units and inspects maintenance calls and coordinates work, whatever you gotta do.  

This show was great, Jesse! Definitely settled some of my anxiety regarding leaving investments in the hand of property management. I particularly liked the part about setting clear expectations and being "firm but fair". In my line of work retention is a constant issue and setting clear expectations is a big part of the solution. Awesome to see Maine getting some attention too. Before I found BP I actually came across the MREM website and was really impressed with it compared to most real estate websites/technology. The pros of being on the cutting edge of tech is definitely showing itself here! 

Wonderful oodcast- really enjoyed hearing about his re-fi on the motel. Great tip if you start out as a cash investor. One odd question- can he show a picture of his 'Key Room'? We have 30 places and still have the ziploc bag of keys! It feeels heavy! :)

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