Hair Brained Idea?

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Would it be crazy to offer free property management to, "Learn the Ropes"?

Blair Poelman · Answer

@Jonathan West

Start by writing out the basic steps it takes to do a deal - here's a 10,000 foot view:

1. Find and buy a property2. Make said property rentable3. Get a "For Rent" sign and put it in the yard4. When a person calls, make them your renter (if they qualify)5. Collect a security deposit and 1st & last month rent.6.  Set very clear expectations of when rent is due, when it is considered late, what the late fees are, etc....7.  Collect the rent each month, and learn from your experiences 8.  Start over at step 1 with another property and do things better on the next one.

and that's it folks.  Success in Real Estate in 8 super generic steps (obviously there's a few details in the middle there)

Andy C. · Answer

It would be crazy to accept free property management! Why would someone trust someone to learn with their investment ?

Mark Ferguson · Answer

Yes, it is crazy. For one many states require property managers to be licensed real estate agents. If you have no experience you are opening yourself up to a lawsuit if something goes wrong.

It scares me a lot you are willing to manage someone elses property, but not your own.

Kevin Yeats · Answer

Read Eric Drenckhahn's landlord blog .... No  Eric is a member of this BP community

Amy L. · Answer

Here's how we did it:

Formed an LLC to protect ourselves - your choice. Our lawyer gave us a copy of the lease he uses for his rentals.

Got an accountant

Set a cap to what we would spend on our first house, then started looking.  Starting with one house and if it worked out well and we could handle this, then move on to the next.

Read BP (and continue to do so), cause we knew NOTHING about REI

Screened tenants following BP guidelines and came as close to perfect tenant as possible. You want them to pay on time and take care of your place.

Used forms from BP, i.e.,  Application, move in/out, etc.  Took many, many pictures of home, inside and out.

All of these good folks are here to help, and so generous with their experiences and knowledge.  This was my push to move forward and it took me/us a year to finally jump in.

Good luck!

Jonathan West · Answer

Thank you for all the great advice everyone!

Rod F. · Answer

Johnathan.  you can always look for a partner. Someone who can bring some expertise to the table. Everyone has a specialty. Sometimes it takes  two perspectives  to look at a fix.

Nick Lee · Answer

it's a good idea but if it's free people seem to attach little value to things.

House hacking could be a way to learn the ropes and live for free

Blair Poelman · Answer

@Jonathan West   You really do have to just jump in, otherwise you're never going to do anything.  Don't be haphazard about it, you don't have to take the first deal that crosses your path.  There's almost a guarantee in this business that you will miss out on an unbelievably phenomenal game-changer deal at some point in your life - but who cares!  There are more where that came from.  (You will kick yourself for the rest of your life for missing that deal.  Just fair warning, dude)

Don't try to take down a deal you can't control and/or don't understand.  Keep it simple - whatever simple means to you.

Andy Webb · Answer

Just jump in and get your feet wet (e.g. take on your own buy-and-hold).  You will learn - and re-calibrate as you make mistakes and compare your latest experiences with other landlords around you.

Andy

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