If you’ve ever purchased a business, the key is not finding the right business but finding one that hasn’t been managed to the best of its abilities. The worst it’s been managed means that it has a lot of potential. If you find a business with good cash flow that’s badly managed, you’ve found the right one. Why? Well, if the business gets you cash with poor management, think about what happens with good management? It will make it better.
Most longtime real estate investors will tell you that property management is successful for them if they do it right. Good management is hard to find, just like good investments. This shouldn’t be the case for those investors that know what they want to look out for. From 2009–2015 there are properties that were purchased within multiple partnerships and the increased OI was 65%. why is that? Well if you want to create something that good, you need management.
Finding good management with the know-how to make the right changes is much harder than ever. If you do self-manage right now, you may find your longstanding employees leaving for higher paying jobs. If you hire a management company, you may find out that they’re starting to charge more because their expenses are going up because they’re trying to keep the good talent. This leads you to finding worse off properties, and if you get them the right management, they will really take off. So how do you find it? Well, read on to find out.
Look at job postings initially. If an owner is trying to get an underperforming manager out, that’s a symptom of a bigger problem, which is larger-scale issues with both maintenance and management. Both are the opportunities that you want to buy a property correctly. Your first step is to find the market that you want to buy, and from there, look at property management, various ads, and some of the calls and emails that you get before you find out if it’s a badly managed property as well.
You can also check with management companies too. It can be challenging for some to handle those residential real estate assets. Many times, property management companies have issues too, ad if you build a good relationship with these guys, you can get better opportunities to purchase real estate. Find out if they are managing for those who need an exit. If a property management company is draining resources to make someone happy, that’s not working, and you can solve tow problems with just your presence.
Then there are vacancies, which are at an all-time low on a national level and the trend will continue. Once you’ve found the market that you’re interested in, you can search for units with multiple or long-term vacancies. From there, you can find the phone numbers and emails, and that’s how a deal will be made!
Now, can you make money in a rental market that’s this tight? Course! It takes a little bit of extra time and effort, and a little bit can translate into better equity, so just make sure that you don’t repeat the mistakes of the previous seller, so make sure that you hire a good property management company that truly will make it better for you.
When it comes to finding the right people to help out, or even some properties to manage, it’s much easier than you think. Once you do choose the right place, you as a property manager can then work with the management company in order to be successful. A little bit will go a long way in terms of your own personal property management, and by being smart, and not working hard, you can provide for the tenants a better experience. And, if you’re smart about it, you can drastically increase the ROI for yourself, and for the property as well, and in turn, create the best results that you can with this. A little bit can change the game of this, and with the right content, and the right actions, you can indeed make a huge difference in your rental profiles and the property.