All Forum Posts by: Sky Mikesell

haha let me clarify... 

Property rents for $1000 per month. 

Management company fee is 8% of gross collected rents = $80 per month

as a buyer of a property management company you would pay 1-1.25 for that income stream... which is an annualized number. 

$80 * 12= $960 *1 =  $960   or  80 * 12 = $960 *1.25 =$1200    that would be the "value" of that one account.    obviously if they are a property manager they are hopefully going to have more then one account so you would quantify that number. :)   

that should make more sense then my first post. 

good question. 

every answer you will get is going to be different.    the fact is what is better for you is based on you. 

If you have cash to invest to be able to buy and fix up your potential profit if you buy right and rehab right is obviously going to be much great then your profit would be as a wholesaler. 

however to be a wholesaler allows you time to gain good experience in evaluating deals.  the cost to be a wholesaler is almost nothing except your time, energy, and effort (and a little money for marketing)   but you usually wont make as much as a wholesaler as you would as a fixer/flipper... not do you deserve to as your risk is much lower. :)  

1% of gross management fees for one year is standard fair here in north carolina.  i would imagine you could get away with a little less in your area based on facts rents are higher.