How to structure my Real Estate Business to run more effectively?

13 Replies

So me and my wife have 7 SFH’s and a duplex. All currently rented besides 1 SFH. So this has been a family run business for some time and my brother was the Maintenance guy and Remodleing guy but he has up and quit. So my question here is how do I keep everything kept up with and moving without him. We are doing interviews this week for a new guy to take his spot. We almost felt really lost at first like it wouldn’t work without him but now feel it’s for the best being that he was not doing his job very well for the last month. So what’s the next move for the business to keep it going and growing? We have all the tools and a storage unit for all that stuff. Any advise would be greatly appreciated. Thanks Josh

Any advice please?

Congrats on a nice portfolio @Joshua D. Did you pay your brother or was he a partner with you all in the business and his contribution was to do maintenance? While others will disagree with me and I think it depends on your situation, I would say property management is a possibility. I think with as many properties you have you may be able to negotiate a lower percentage pm fee. Hope things work out for you!

@Robb Almy thank you! He wasn’t a partner. He just got paid weekly to do the renovations on any house projects and did any maintenance calls we had. And he wasn’t actually my brother- he was like a brother to me at the time. He was paid $11.00/hour on payroll and given flexible work hours, cash bonuses after every house ($500) and a lot of other various perks and bonuses. I’m unsure if we should even have a full time person or if we should just contract each renovation out and just call someone when we have a maintenance call to get sent out.

Any help would be great. Currently In a pinch and not sure where to go from here. We started out with a full time guy and got all the tools we needed and he quit. So wondering what the best option is as far as budgeting and being the most effective

Also, who handles small things on the houses versus big things? For example, replacing filters, missing shingles on houses, small leaks, who do you call? Do you use one general contractor to do all of those things or just the big renovation projects ?

And who does your inspections?

Any Help would be greatly appreciated. Kinda feel in a spot right now

a handyman can do most small things and if you bundle several tasks up at a time you should save money.   It's going to be difficult to find very reliable full-time maintenance employees for that low of pay.   You can make it work but you're going to have to spend time messing with training and managing them and your time is likely worth more than the head ache.  

I would try out a few handyman and just see how it goes.  They might cost more per hour but their quality will be much higher if you get a good one and if you don't like it you can always hire a maintenance guy down the road.

For the next few people you hire to do small repairs turn it into a job interview. If they do good work and communicate well ask them if they would like to be on call for more work like this.  Most repair people love getting in and getting out two or three days max.  It keeps them flexible with their customer base. I found a great plumber this way and an electrician. Some of my favorite skilled workers are retired but still hold a license. They won't do new construction but would love repairs you are seeking.

I found one person by asking the plumbing department guy at Home Depot. Normally the HD guys come from the trades and hook up with HD because of age or injury or other reasons but they are well connected.

I found a great concrete guy by calling the local mix plant and got three names to try. I told them I wanted someone that only does the size of my projects (sidewalks, stoops, patios, small).  There again is a nice subset of contractors that like to prep one day, pour one day and pull forms. In and out.

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