Wise to buy from a Property Management Company?

[Franco Urbaez]

Hey all,

I am a new investor who has yet to close on my first deal.  I found a 6 unit property that should generate enough cashflow to satisfy my goals.  I am wondering if it is unwise to purchase a property from the property management company that I want to manage the property when I own it.  If anyone has done this before, can you please tell me what I should look out for?  Anyone please feel free to chime in, I want to catch every angle - every pro and con.  Thanks in advance guys!  :)

- Franco

[Fred Heller]

@Franco Urbaez Oh I see. To answer your question, no there is not a conflict of interest. It wouldn't be any different than buying a property from any other seller.

So is the PM company actively marketing this property? Or is it just something you would be interested in buying? If the former is true I would want to know why they are selling. If the property is profitable, why do they want to sell? If the latter is true then you're probably going to have to offer a very sweet price to get their interest.

In either case, I would definitely have someone represent you in the transaction. You'll want to have someone looking out for your interests.