All Forum Posts by: Alex Case

@William Principal

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

 this is the biggest catch of all: liens     

he is 100% RIGHT!!

I am a real estate investor in WV I have a deal ready to be closed in weirton wv. From my experience here the title places have no idea what wholesaling is or how to work with a investor.. I have my hands full here and I'm hoping they don't screw my deal up..I'm really concerned..and hoping that wholesaling/flipping contract  is allowed here..any reply would helpful

Hi @Dan Pocklington there are deals in the bay for sure. David Greene has operated in the area for a number of years and I work with investors in the area on a daily basis. Mind you, the cost to acquire property is higher in CA but the appreciation is on your side. 

I recommend digging into the calculator tools on BiggerPockets to help you determine what is good and what is not. Start by looking on the MLS for multifamilies you think would be a good fit, contact an agent to get you the lease agreements, and plug the numbers in.

If you are finding that deals are too expensive, maybe it's best to shift your gears to off market properties by attending meetups and reaching out to wholesalers. 

Good luck!