I’m currently interested in buying a property management company in California.(Partnership with a Broker)
I have a meeting with the current owner set up and I am curious on questions I should ask.
Currently they have 115 doors that they manage. 4 employees(2 are willing to stay) gross income last year was around 180,000$. I plan to go over their numbers at the meeting..
Asking price is $115,000 at 3-6% on a 10year that they are willing to carry.
Any suggestions or thoughts please let me know. Thank you
Good gurdy man, $180,000 gross income with 4 employees is SLIM! That comes out to $45k per employee with NO expenses . . . and as a PM let me tell you . . . there are expense.
115 doors is a good start, but young or small in the overall world of PM, so I'm curious: what exactly would you be buying here? Do they have phenomenal marketing and blue sky value, a tremendous book of business, or something else?
115 doors and $180k isn't much. Unless you have a GREAT plan to grow it to at least 200-250 doors.