North East, PA · Member since 2016 · 6 posts · 1 vote
Hello
I'm brand new to real estate investing. I am a partner in a business that has a very strong monthly cash flow and I'm looking to use that cash to acquire multi unit rentals. The main issue I have is my lack of experience. I'm not a handy man what so ever and I do not want to get dragged into the day to day of being a landlord.
I realize where my strengths and weaknesses are and that is why I am planning to utilize a property management company.
My question is, are my expectations unrealistic of being a mostly hands off real estate investor? Can a property management company handle 99% while I continue to manage my daily business and hunt for more deals? Also are there any resources I can turn to if other people like me? Would love to have a mentor whose been in the same situation!
Thanks much in advance!!!
Maitland, FL · Member since 2016 · 45 posts · 17 votes
9y
That's a very broad question that really depends on what you negotiate with the management company. The more you ask them to do the less passive they will be and the more it will cost. But, unfortunately or me, I'm more of a retail investor lol. I can't change a light bulb to save my life. When I've used management companies in the past, I've had them handle everything.
Maitland, FL · Member since 2016 · 45 posts · 17 votes
9y
That's a very broad question that really depends on what you negotiate with the management company. The more you ask them to do the less passive they will be and the more it will cost. But, unfortunately or me, I'm more of a retail investor lol. I can't change a light bulb to save my life. When I've used management companies in the past, I've had them handle everything.
North East, PA · Member since 2016 · 6 posts · 1 vote
9y
Ok that makes sense. The company I've been looking at has a pretty decent list of task they cover which to me seem to be all, but again I'm still a noobie so who knows. They are charging 10% plus first month when finding a new tenant
Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
9y
Recognizing your own strengths and weaknesses up front puts you years ahead of most new investors. A good PM will actually prefer to handle everything and for you to stay out of the picture. Your job should be managing the manager (politely) and nothing else. Keep solid communication but stay out of the way and let them do what they get paid to do and you'll have a positive experience.
If your manager is not NARPM accredited you better look very close to make sure they actually know what they are doing.
Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
9y
agree with Robert we are Canadian investors so for us everything is done at arms length so our property management companies handle all the say to day affairs .... the secret is to have a company that you can trust... we do take trips to the states to meet with the key people on our teams and are doing well with our investing as of today
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
9y
If they're charging first month tenant placement and 10% of rent then they should be handling everything enabling you to be 100% hands off. Unless they're a bad property manager, in which case you should can them anyway.
Real Estate Broker · Hugo, MN · Member since 2016 · 688 posts · 596 votes
9y
I prefer owners stay hands off. This is what we do, we have policies in place for every situation the owners should judge our overall performance, not need to be involved. Pm is running a small business, monthly reports and photos should keep you up to date on how your business is doing.