I wanted to get people’s opinions on real estate companies that also do property management. Last weekend I went to a meeting/presentation for Marshall Reddick in Newport Beach, CA. (https://www.marshallreddick.com/) the presentation and sales pitch went great (as they always do) and I have already had a few conversation with the real estate advisor and so far everything looks great, the main thing I like about them is they have tons of listings out of state. Given the current prices in Orange County, I am not looking to invest here yet. Now, I know there are many companies out there like Marshall Reddick so, I am looking for people that have worked with these kinds of companies to please share their experiences and things I should watch out for. I know everything sounds great on paper and things can quickly become a nightmare. One thing I really like about them is they only make money when I do and their fee is 7% of the rent. I am not ready to jump in to investing tomorrow, I am still a few (3-4) months away from having enough for a down payment for a single home in the Texas and Tennessee markets.
Originally posted by @Ramonater Ramo :
I wanted to get people’s opinions on real estate companies that also do property management.
I know from experience that this type of partnership has worked well for me. In Huntsville, AL I have partnered with Dietrich Rentals who manage my rentals there and I also used Carolyn's services when I purchased.
When I lived in SoCal and started investing I managed my St George rentals myself and did work with a partner who shared insightful information about managing. It is a very landlord friendly state.
Now that I'm in TN and manage my own rentals here. I am asked repeatedly to help other investors with management and so started with my daughter our own management company. It just works.
I will say it is helpful to know what your expectations are and make sure that your criteria is meet well before you let anyone else handle your money. You want to trust who you partner with when investing.
@Ramonater Ramo They don't only make money when you do. First of all, they make money on the property that they are selling you. That's where the bulk of the profit is. Secondly, they can still be making money on the property management side even if you are losing money. They'll still be collecting their 7% even if you're bleeding out in maintenance and repairs. I'm confused why you think they will only make money when you do. They are not taking on any of the risk and can't be expected to.
@Mike D'Arrigo You are absolutely correct, when i said they make money when i do i meant in regards to having a tenant in place and getting rent, they don't get paid if the place is vacant. And of course if i am left with a repair bill that might end up netting me negative that month (or a few) i know they will still charge their fee but, as long as the place is rented out.
@Ramonater Ramo I thought maybe that's what you meant. Most property managers get paid on only collected rents.
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