How do some people manage properties around the world?

13 Replies

I know of private companies with 1 principal owner that own and manage properties all over the world.

NYC, Miami, Chicago, London, Paris, Mexico City, and more.

How do they do this? At this point, I can't imagine being able to own something over an hour drive away. I would need to constantly be able to keep an eye on it, and also be sure my employees are being honest.

@Patrick Philip   As we have looked to grow to other parts of just Chicago it takes in house employees and third party vendors to be able to outsource the boots on the ground like @Scott Morris said.    Some companies just have better control over it then others.  Commercial property management companies do it well but with commercial there is less "tenant and toilet" issues and more arrangement of just exterior routine maintenance.  There are a couple of national residential property management companies popping up but they truly have local offices to run the operation with a parent company.  There is also these investment group management companies that outsource management to local management companies and take a spread on the revenue. They actually do now work except maybe as a pass thru of info.

It’s definitely possible. My business is to purchase short-term rentals with investors and manage them for the benefit of all the investors, myself included.

@Patrick Philip I think what that company most likely does is subcontract to local managers so they hardly do anything and you pay double commission.

10 miles 10,000 miles, if your an investor it does not really matter.  If you are a landlord, then it is important.  The internet has changed the profile of RE.  Face time and the ability to txt a photo are huge.  Bank financing has evolved as well.  The best example is TD Bank (Toronto Dominion), it will lend to Canadian citizens to buy property in the US.

Having good people is essential, whether, the property is down the street or across the globe.  Multiple quotes on jobs is the best test of a vendors.  I have relationships with vendors I use all the time, we have unofficial pricing.  As long as the quality remains strong and they honor the price, I don't have to shop the work.  It has taken me years to get to this point.      

Originally posted by @Ali Boone :
Originally posted by @Karen Rittenhouse:

@Patrick Philip

@Ali Boone is a fabulous resource here on BiggerPockets. Owning in other countries is exactly what she does.

Good luck!

 Thanks Karen! ;)

 Do you have an answer?

Originally posted by @Patrick Philip :
Originally posted by @Ali Boone:
Do you have an answer?

Are you asking how to be a primary owner like of that kind of company that owns and manages all over the world, or are you asking just generally how someone could own a property not local to them?

The general answer to both of those is- outsourcing. You hire a property manager to manage the properties and then your only job is keeping an eye on that manager.

Originally posted by @Ali Boone :
Originally posted by @Patrick Philip:
Originally posted by @Ali Boone:
Do you have an answer?

Are you asking how to be a primary owner like of that kind of company that owns and manages all over the world, or are you asking just generally how someone could own a property not local to them?

The general answer to both of those is- outsourcing. You hire a property manager to manage the properties and then your only job is keeping an eye on that manager.

 And how do you keep an eye on a manager from 1000 miles away?

Originally posted by @Patrick Philip :

And how do you keep an eye on a manager from 1000 miles away?

You make sure the property is functioning as it should (first hint is the correct amount of income comes in each month, no mysterious charges, no tenants who secretly moved out, etc.) and if it's not, you make sure the manager is taking proper steps to deal with it.

Originally posted by @Ali Boone :
Originally posted by @Patrick Philip:

And how do you keep an eye on a manager from 1000 miles away?

You make sure the property is functioning as it should (first hint is the correct amount of income comes in each month, no mysterious charges, no tenants who secretly moved out, etc.) and if it's not, you make sure the manager is taking proper steps to deal with it.

 Wouldn't you be more worried about tenants secretly moving IN? The property manager pockets the rent and tells you the place is vacant?

Originally posted by @Patrick Philip :
Originally posted by @Ali Boone:
Originally posted by @Patrick Philip:

And how do you keep an eye on a manager from 1000 miles away?

You make sure the property is functioning as it should (first hint is the correct amount of income comes in each month, no mysterious charges, no tenants who secretly moved out, etc.) and if it's not, you make sure the manager is taking proper steps to deal with it.

 Wouldn't you be more worried about tenants secretly moving IN? The property manager pockets the rent and tells you the place is vacant?

Ummm...not quite sure how that would work for very long, if I were staying on top of the vacancy period...

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