I am currently studying to get my real estate license in North Carolina and will hopefully be licensed in January. I want to start a property management company after I am fully licensed. What is the best strategy to getting your first property to manage? Is there anything that I can do now to prepare myself. What are the best networking organizations to join?
@Ryan Manning do you currently, or have you ever, owned any investment properties?
@Ryan Manning Starting a business is not hard. Starting a successful business is a different story. I was reading an article recently about majority of PM companies not making it past 2 or 3 years.
I would recommend first working for a property management company as a licensed real estate professional to learn how it all works. You will also gain some connections that way so then you should not have issues being find by investors.
As an investor, when selecting a PM, due diligence is very important. I would not trust a company to manage my properties without proven track of successful records. I would want to know how well you screen the tenants and have good records showing that. I would want to know you can handle evictions in timely and professional manner and that you can maintain my properties to keep them profitable.
@Ryan Manning I’m guessing you Can’t start a property management company as an agent, you usually have to be a broker.....and for good reason, if you have no experience you’re going to make a lot of mistakes/missteps with other people’s properties/money. You need to gain some management experience before you decide to go out on your own.
Understand, the education you get to get your license teaches you Nothing about the actual Business of real estate, mostly only some rules and regulations.
Hi, @Ryan Manning in NC you will need a Firm Lic. which you will need to be a full Broker to get, so just take all your Post-Lic classes right away. The bigger challenge is that you have to have a Broker-in-charge (BIC) for each physical office you have. You wont be able to be a BIC until you have 2 yrs exp. You can hire a BIC eligible broker to be your BIC, it'll probably take a few tries I am guessing most will be a bit hesitant to shoulder the liability, but they are out there.
The big thing that the NCREC cares about is that you will be handling "other peoples money" so make sure you have right bank accounts setup and a good Prop Mgt SW that will let you handle the accounting. Please don't underestimate the accounting part of PM'ing it is a much bigger part of the business than people realize.
@Ryan Manning good for you that you are trying to get started doing your own thing but before you wade out into the deep water you better get some knowledge first or else you are about to learn some very expensive lessons!
Join NARPM immediately so you get some knowledge and education behind you.
@Ryan Manning - Definitely don't open your own property management company without property management experience. You may find that you don't even like it.
I was managing 56 of my own properties before I started looking for a property management company to take them from me. Boy was I disappointed. I couldn't find one that I wanted to work with so I ended up opening my own company. I don't have a real estate license (you don't need one to manage your own properties) but, since my company was also going to be managing for others, I hired a BIC and also opened a brokerage.
You must know the laws and how to manage before you jump out on your own. You must have a track record. Anyone with properties is going to need for you to convince them why they should use you as there are plenty of companies to choose from.
The idea of working for a management company first is a great idea.
Let us know what you decide and how things work out!
Thank you so much to everyone for the great advice. I still have a lot to learn and will definitely heed your advice.