Starting a Property Management Company?

Question

So, I am new to the forum... new to REI. I was wondering if starting a Property management company might be a good way to start.

I am excellent with marketing and business in general, just a complete newb in RE. Would this be a good way to learn rentals and buy/hold investing? If so, would you go alone or open a franchise?

With this, I could invest in the business and marketing versus investing in the actual property and possibly build up a quicker cash flow.

Thanks

Jeff B. · Answer

There are legal requirements for PM for most states - - suggest you find the rules before you sink any money into this - - even on a PM Certification.

I Calif, a PM must hold a RE Broker's license OR directly work for one.

Nathan Gesner · Answer

You can see state requirements HERE

According to your profile, you have no experience in real estate or property management. Do you know why so many people refuse to own rentals? Because they don't know what they are doing, they get into trouble, and then they run away with their tail tucked between their legs!

I recommend getting licensed and working for a property manager for at least a year before you try breaking off on your own. This will give you the training and experience, plus you'll find out if you even like it. If not, move over to sales and count your blessings. If you do like it, then you can put a plan in place to start your own company.

Keep in mind, you typically have to have a Broker's license to open your own company and those take two years or more to earn. The other option is to be a licensed PM  and work under another Broker, but then you have to share some of your spoils.