Networking with Project Managers

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I overheard a collegue say they have found deals working with property managers as they help their clients unload inventory.  

Has anyone had any experience with this they would be willing to share?  

How is it best to approach a property management company to ask them inform you when opportunties are avaliable?

I have an idea of talking to them about me purchasing the property and would allow them to continue to act as the property manager but don't know if this the best option or if this is against a common company policy.

It depends on what market. I haven't had luck in Utah, but in the turnkey areas like Indianapolis, Kansas City and Memphis it may benefit you. I have a couple Property managers in Memphis that send me leads and a number are off market. Some need some work but are cheaper than the MLS prices from my experience. I am working on a couple of deals brought by Property managers helping clients divest. My biggest question to them is why are you selling?

I am the business developer for a national property management franchise in Indianapolis. We have a good cash flow market although good inventory is getting scarce like most markets. Most of our owners do pretty well and buy more than sell, but we are having owners that are starting to unload as the local market has strengthened. Unfortunately, they are decent homes in decent areas and our owners are listing them at market rates. Usually there's not enough discount rate to appease most investors (similar to turn-keys, but not necessarily tenanted.)

I do have a lot of phone calls from clients of other property managers who are having bad experiences and we do help them sell their homes, but we try to capture as many of these for our current clients... especially the ones who are experienced and capitalized enough to navigate through whatever problems the property is experiencing (major maintenance or damages, problematic tenants, etc.)

We've found that there's a lot opportunity by networking with PM's for several reasons, but at the end of they day... we're running a business and trying to grow. If we have access to inventory, we want to manage it. For that reason, you will likely find that most property managers will protect their inventory from investors.

I hooked up an investor about 3 months ago. One of our Israeli investors was selling a home with a current 5 year tenant because he didn't want to invest in a roof replacement. We negotiated a pretty good price and I sent it out to one of my prospective clients. Unfortunately, he moved the property to another property manager.

I wouldn't expect any favors unless that PM feels confident that you will allow them to manage the property after closing. Non-clients get opportunities after our current clients pick over them... 

I work with investors all over the world and help them build teams to identify, acquire, renovate, lease, and manage properties that yield a pretty decent ROI. Right now, inventory is getting tighter and the deals are getting leaner, but I still see deals almost every month.

My recommendation would be to identify some markets that meet your goals and financial resources. Are you leveraging bank money to acquire assets and build equity over time or are you a cash buyer purchasing for cash flow? How far away from your personal residence are you willing to invest? How much distress can you handle as larger scale rehabs can be very stressful?

After answering those types of questions, I would identify the best markets for you to be in. Many of my investors are in Indianapolis, Memphis, and Kansas City. I'm seeing more traction in Cleveland (as well as other places in Ohio) and Detroit (and other parts of Michigan) as well. 

Then reach out to PM's, Realtors, and Project Managers. They will be your local, boots on the ground. Allow them to help you build out your team and follow their recommendations (as various cities and markets have different strategies and opportunities for that marketplace.) There are plenty of reputable sources here on BP in all of these markets.

I am apart of a huge network of property managers over 40 states and 13,000 properties. Just about anywhere in the nation, I can connect you with a proven and professional property manager. Not just residential management, but also many who specialize in Commerical, Industrial, and Homeowner Association management. They will have all the answers to your questions. They want to help! 

Originally posted by @Jackson Pontsler :

I overheard a collegue say they have found deals working with property managers as they help their clients unload inventory.  

Has anyone had any experience with this they would be willing to share?  

How is it best to approach a property management company to ask them inform you when opportunties are avaliable?

I have an idea of talking to them about me purchasing the property and would allow them to continue to act as the property manager but don't know if this the best option or if this is against a common company policy.

Agents who are property managers will be a great source of rental property investor that is for sure. Keep it simple tho. You don't need to "network" with them. They are agents. Their job is to sell real estate. They do so by having the biggest pool of exposure to buyers. Tell them what you are looking for & get on an MLS drip. They will send deals from there as their goal is to send their deals to anyone who's willing to look.