Lender · St. Augustine, FL · Member since 2015 · 120 posts · 26 votes
Anyone have experience buying a PM business? As of now, we only manage our own small portfolio. We are looking to buy an established business with a system in place. Any advice would be appreciated!
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
in Oklahoma is a real estate license required to manage properties?
If so it might be hard to sell the management side of the business as the the real estate sales may be also under the same company structure. I could be wrong..
Also since your a licensed agent why don't you just start your own company and hire experience managers to work for you..
I encountered a lot of bad management companies who just drain investors money. They always lacked something and I will never have peace of mind.
If you are seeking a company you need to make 110% sure they have the best systems in place and the way they are structured doesn't have any loopholes.
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
6y
in Oklahoma is a real estate license required to manage properties?
If so it might be hard to sell the management side of the business as the the real estate sales may be also under the same company structure. I could be wrong..
Also since your a licensed agent why don't you just start your own company and hire experience managers to work for you..
I encountered a lot of bad management companies who just drain investors money. They always lacked something and I will never have peace of mind.
If you are seeking a company you need to make 110% sure they have the best systems in place and the way they are structured doesn't have any loopholes.
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
6y
@Hai Loc , yes, in Oklahoma you must have a real estate license to manage properties for anyone other than yourself. @Jaren Woeppel , after looking at the available local options, we continue to self-manage although we export a number of tasks, ie. answering the phone.
Lender · St. Augustine, FL · Member since 2015 · 120 posts · 26 votes
6y
Thanks everyone for the resoonses so far! Some clarification, we are looking to buy a PM business in the St. Augustine - Jacksonville, FL area, not here in Oklahoma.
The idea behind buying a PM business would be bypassing the scaling of the business. Why I would agree, it would be ideal to start one ourself but to be profitable at PM it seems to be a numbers game. The idea would be, say we wanted to buy a company for $100k and they have 100 clients. Would we be able to spend $1k in aquisition costs to get to that level? Also, how long would that take?
Property Manager · Wake Forest, NC · Member since 2015 · 84 posts · 56 votes
1y
@Jaren Woeppel I own a management company that focuses almost exclusively on the management side for revenue and has right at 700 doors under management. There have been some big players entering the PM market and a lot more interest in acquisitions of smaller PM operations. In our market 100k for 100 doors would be a steal. Many buyers are paying 1.5-2x revenue. If you’re looking at 100 doors at $150 per door you could be looking at a purchase price of $270,000 - $3600,000. This will change the roi and cost benefit equation quickly. I’d also be aware that you likely won’t have much in the way of systems at 100 doors. That is very manageable for one PM and an office admin. Beyond a management software you may be just dealing with soft processes or in others words, “this is just the way we do it.”
I hope this is helpful and gives some context as you look into this further. Best of luck!