Re: Repost…Property mgmt corp? - Posted by Frank Chin
Posted by Frank Chin on January 24, 2001 at 12:27:51:
There was a thread a few weeks ago where this was discussed in detail. One fellow suggested finding a good property management company first, then locating the properties.
I managed all of my properties myself as I heard many stories:
1- One friend took a no money down course, and I asked him if he found some deals. “Yes, plenty” - was the answer. “Where?” - I asked. He tells me of numerous properties run into the ground by management companies. In fact, one landlord’s been pestering him to take over the property - just assuming the mortgage. “Do you want this guy’s number?” he asks. Tells me some management companies had a knack for finding deadbeats.
2- I took a Saturday Real Estate investment course in New York City. This investor owns property in the Mid-West and Texas. He hires retired people part-time to manage his. Takes a trip out there to place want ads on church bulletin boards senior citizen centers. Had great experience with god-fearing seniors willing to make a few extra dollars. “Beats Property Management companies by miles” he says.
3- A good friend bought an apartment building from a doctor at a giveaway price. He fired the management company, property manager, building super, and evicted deadbeat tenants. Moved into the building. Sold it several years later at a great profit. “Who bought it” I asked. “Oh - the same doctor who sold it to me” he says. “He’s learned his lesson and is not using a property management this time.”
In fact, I recently made a career change. I own too many properties to manage part time after work. I can try - but won’t see much of my family. I can:
A- Hire management companies and have them run my properties to the ground.
B- Trade up to larger properties and manage it full time myself. In fact - if things work out right, I plan to hire some seniors to help with the mundane handy-man and cleaning work. I’ll be the property manager - real estate investor.
I make it a point to visit the properties and collect the rent checks in person. Work with tenants to plant front yard gardens. Get to know the neighbors. Patronize neighborhood shopkeepers to get the local buzz.
Paid an elderly next door neighbor, named Dominic, who sits on the front porch every day (all day long)$40.00 a month a keep the sidewalk clean and keep an eye on one of my rental prioperties. Got a citation one day for some debris on the sidewalk. He tells me that at 8:45 that morning, a City crew emptying garbage cans knocked a can over and didn’t pick up the debris. I’ll go to court with you to fight the citation he says. “No thanks” - I said, don’t have time to fight City Hall.
I always wonder where I can find a mangement company who can beat Dominic’s attention and price. In fact, Dominic promised me next time, he’ll pick up the debris immediately rather than waiting till he finished his coffee. “That citation’s all my fault” he says. Would that be a management company’s attitude?
Dominic got a nice color TV that Christmas.