All Forum Posts by: Scott Bowles

Team, I appreciate any time y'all will give me.

Let me explain my scenario - Myself and a Business Partner are 30 years old, we have a single 4-plex and a condo currently under our belts in Portland Oregon. For obvious reasons, we are looking to expand our investments beyond Portland Oregon (renters laws, high initial down payments, brutal landlord tenant laws, low cash flow) to a market with a lower get in cost, as well as a market that cashflows. I've been dumping hours into finding the right market to invest in considering we dont have piles of cash and have narrowed it down but am curious on the communities opinion. Ultimately, I'm looking for any tips and tricks for out of state investing or recommendations on a market. Game plan is to buy duplex's (or similar) and have a local property manager run the day to day. I would also be interested in whether or not forming an LLC (or equivalent) is a good idea vs owning the properties personally/ what the pros/ cons are of this approach.

Sorry for the broad stroke of a question - any help/ time is appreciated! Enjoy the long holiday weekend!

@Scott Bowles

Recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

To avoid going through the same poor experience, keep reading.

Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.

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, they often select the first PMC they call or that calls them back!

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!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

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😊

Happy to send one to you