All Forum Posts by: Coleman Nelson

Welcome to the community @Bobby Jones. There is a great network of investors here in the local area. Let me know if there's anything I can do for you.

@Jacob Homan welcome to the site.  It looks like we may be neighbors!  My business partner has his Ohio license and he's with Ownerland Realty.  He only uses his license for his own buying and selling...not as an agent for others, and they seem to be ok with that.

There's a lot of good information here and on the podcasts.  If you guys want to come over for dinner to talk real estate sometime, just let me know!

Hey Grant! Welcome to the community. It sounds like you have some good goals to work toward. Let me know if there's anything I can help with or if you ever want to talk real estate.

We just started our own management company to manage our properties.  If you already have the team to do it, then I'd recommend that route. Below is a link to a thread from some questions we had while starting ours, and there is some helpful info in there.

https://www.biggerpockets.com/forums/52/topics/269...

I don't know if any of these companies are good or reliable, but here are a few management companies that I know of:

Sundance Property Management

CRES Property Management

Penklor Property Management

Paradigm Property Management

Real Property Management

 It's all yours!

I'm probably not going to be able to make it to the meeting tonight because of work.  If anyone isn't going because they didn't register for it, feel free to take my place.

@Joel Owens Thanks for your advice. I live in Kentucky, but it is a suburb of Cincinnati OH.  All of our properties are within 20 miles from me in OH. So our LLCs are all Ohio LLCs. And I agree with you about PM being difficult to make a lot of money in without a lot of headaches. That's why we aren't planning to pursue managing 3rd parties at this time, but want to be able to if the right opportunity comes our way. 

@Max James, it seems to me, and it sounds like Joel agrees, that it's tough to make money in PM unless you are able to get a lot of properties and go big. For instance say you do SFRs that rent for $1k per month and you charge a flat 10% fee. That's $100 per door per month. So you'd need to manage 50 properties to gross $5k per month or $60k per year. Then you have all of your expenses to account for. Hopefully that math is right! But if we are good at managing our own portfolio, which will hopefully keep growing, and have our systems in place, and someone approaches us about managing an apartment complex, it may make sense to take that on. 

Thank you all for your responses.

@Daniel Raposo, @Mark Elliott, and @Jered Sturm I appreciate your advice.  Since we are only managing our own properties at this point, I think it will make sense to have our management company pay all of the expenses so the only transactions hitting the holding companies' accounts are the monthly payment from the management company and draw payments to the owners.  Seems to be easier for accounting and operations.

@Nathan Gesner, thanks for all of your insights.  All good advice.  I agree that the main benefit to manage properties for others is the potential for deals and having a better pulse on the market.  At some point that may make it worth it to make a move in that direction.

My business partners and I just created a new property management company here in Cincinnati, Ohio to manage the properties in our portfolio.  I am hoping that current PMs and owners who use PMs can offer some tips on the best way to manage the cash handling between the management company and the owner. We are currently only planning to manage our own properties, but we want to set up the company as though we are managing 3rd party properties so we will be able to transition to that quickly if we determine it's the right opportunity.

Our plan is to have the management company collect all rents, pay all expenses, and send a check to the owner for the net cash flow at the end of the month, less management fees.

Is it common practice for PMs to pay the mortgage, insurance, property taxes, etc., or should the owner be paying those expenses?

Is it difficult getting vendors, such as lenders and utility companies to work with the management company since they are not the property owners?

For large expenses, such as property taxes, do you have the owner transfer money over to the PM in advance so they have enough cash to make the payment?

Do you have a separate bank account for each owner that you manage for where a reserve is kept?  Does the PM and owner both have access to this account to add and withdraw funds?

I have more questions, but this is probably enough for now!  Thanks in advance for all of your help.

Welcome to the community @Avnish Khare!  Make sure to set up some keyword alerts so you are notified of posts related to our local market or any other areas you are interested in.  Good luck with your learning!