The Truth About Managing Rental Properties

In my recent podcast episode James Wise mentioned that a lot of people like to dance around the issue of how difficult it is to be a property manager to actually invest in real estate. James is a broker; brokers want to sell properties. Brokers want broker deals, syndicators, they want to sell their sponsorships.

James have sold $150 million with the rental real estate in the last few years, and he run a large portfolio top to bottom. He wants to sell more real estate, but he doesn’t like to dance around the topics. He doesn’t call these people unique, some of these people are savages. That's where the idea for his show, one of his shows on Holton Wise TV, this is probably the most popular show, it’s called the Tenants from Hell Show.

James runs a large portfolio. That’s part of the business. If you’re investing in real estate, it doesn't matter if you’re investing with Grant Cardone, Holton-Wise. You’re buying stuff off of RoofStock, whatever, nobody in the world has figured out how to run around a real estate without doing evictions. That’s part of the game. So, what James likes to do, he likes to film his evictions. He does about a hundred evictions a year. He films them, and the best ones he gets, he puts them on the show. He does that live. One episode, he had a hoarder. A lot of people, they don’t understand what exactly it's like to go through an eviction or what is actually going to happen. Like a small little apartment. It was like, 600 square feet and this thing rented for like probably 600 bucks a month. He can’t remember off the top of his head, but he had to get an entire crew in there.

He had on-site in that video, where you can see all the guys in the video, working, emptying out this apartment. He probably had three bailiffs and like a total of nine guys. They’re all day emptying out this little 600 square foot apartment. You think you’ve seen some rough stuff, guys. This ended up being a total bill to get that apartment completely emptied out, renovated, and ready to run again for 600 bucks a month. The total cost ended up being like 15 or 16,000 dollars. And that's the part of the business that nobody really ever wants to talk about, but these things happen. When they are doing analytics on their rental properties, they need to put this type of stuff in their proformas because this is stuff that's going to happen. That’s what the Tenants from Hell Show is all about, that’s what he like to do, he wanted to show people that, so nobody goes into investing with a blindfold or blinders on.

Listen to full episode: https://lifebridgecapital.com/2019/10/ws362-the-truth-about-managing-rentals-with-james-wise/