Helping Sister Invest in My City

Helping Sister Invest in My City

Rental Property Investor · Topeka, KS · Member since 2019 · 9 posts · 1 vote

Hey all. Hope your Easter weekend was great. I have been investing in residential real estate for 15 years and my sister wants help in buying investment property in my city. She lives out of state and I have agreed to manage the properties for her after purchase...for a fair fee, of course.

We haven't however discussed costs for me to work with my local real estate agent to identify and do the pre-purchase due diligence on the properties as she most likely will not be available in person to see them. What is a reasonable fee to charge? Should it be a percentage of the assets purchased or an hourly rate. Thanks for any input.

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  • Rental Property Investor · Steamboat Springs, CO · Member since 2014 · 278 posts · 100 votes
    7y

    @Scott Schultz

    Hey Scott!  Both can work.  It sounds like you have good experience with managing your own properties.  So it probably won't be too much for you to take on one more asset.  Would you invest in the specific property with her or would you just help out a family member and manage it?

    You can alway charge the "standard" 10% of the rent to manage it. And if you are really nice, give you a family discount.

  • Rental Property Investor · Topeka, KS · Member since 2019 · 9 posts · 1 vote
    7y

    They are doing a 1031 exchange so they will be buying the properties. Want it to be a win-win but my time is valuable as well. 

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