property management

[Rich_in_CT]

Sounds like you've done what sucessful rehabbers do, built a SYSTEM that works and expanded it.  By having people out there that are well trained and ready to act intelligently on your behalf you've multiplied the level you can operate at bigtime.  Good work!

[DannyTheGreat]

Thanks Rich. The "Investment Analysts" really are smart people. All have some background in home inspections or general contracting. All have owned their own business at one point. All got tired of an inconsistent income and I pay them equal to or more than what they'd make on their own with less stress of worrying about where next weeks payday is coming from. These guys can evaluate 2- 3- 4 properties a day each which leaves plenty of properties to choose from.

Sometimes home inspectors or appraisers offer their expertise in the form of an "investment consultant", this is pretty much the same thing only mine are full-timers.

Now shut up and go buy a piece of the rock!

[Rich_in_CT]

Trying man, trying.  Trust me......I'm definitely out there trying to git r done.  I think unless the numbers come back above my expectations on that condo deal its kibashed bigtime.  I'm going to keep searching.  Read a little of "Flip" last week or so, figured since I was trying to buy now I should at least pretend to read it.  LOL  

[Frank Chin]

I'm with Mike here.

I already wanted to own a business with employees, but having run one with 8 employees for the last four years, I'm currently selling it. Why??

Good employees are expensive, they come and go, open their own business, and if they stay want frequent raises. The bad ones stay and stay till one day, they mess up bad enough I have to let them go.

I just had it with employees

For small businesses, one out of four hires are disasters. I hired a gentlemen, in his late 30's, with a mind and intelligence of a 15 year old. My manager prevented me from firing him a number of times, reminding me his replacement can be a even bigger disaster.

Anyway, I kept him around for laughs, but he finally left a few weeks ago.

- One time he's having lunch, picked up the phone to tell a customer with his mouth full of food that's he's out to lunch. The angry customer wanted his supervisor. Told him to let the voicebox pick up the phone next time.

- Told us all about all his problems bringing a big pizza home on a crowded city bus because it's one dollar cheaper here where he works. Couldn't understand why the other passengers are so upset.

- Asked a lady in the office what to do with leftover pizza, and was told to heat in up in the oven at 350 degrees. When he gave a puzzled look, turned out he just rented a new apartment, but forgot to see if it came with an oven.

- Another employee tired of sitting around did some work for him, but didn't quite finished. He was all upset, yelling  saying why people can't finish jobs that they started. Explained to him everyone working here is "on a team", and he's expected to finish work someone else started. His answer "oh, now I understand. I never understood why after my wife did the wash, she's so upset, I don't go and fold it, and I always thought if she started a job, doing laundry, she's got to finish, folding it. I guess on ON A TEAM with her, and I should finish".

- Bought several new phones at Staples and he started to throw the all boxes away. Told him to keep one, he gave a puzzled look and asked why. A customer standing nearby explained that if a phone is broken, you put it back in the box, and bring it back to the store. His answer "oh, I never knew that".


I kept this fellow on, as he's stupid but harmless.

[DannyTheGreat]

I understand completely. It takes a while to find the first one because it has to be a winner. There is no comprimise on this because a marginal deal can leave you torn to sh** financially and it will be another 10 years before you are in the position to start again. Just keep on truckin'.

"Riches do not respond to wishes. They respond only to definite plans, backed by definite desires, through constant persistence." - Napolean Hill

[DannyTheGreat]

Frank,

What was the clowns job? Hopefully nothing of importance....

[Frank Chin]

Help answer the phone, cashier, and "go-for" to pick stuff up at parts store etc.

He was biligual with Chinese, and speaks Englsih with a thick accent. Got into an argument at a parts store we use because the guy couldn't understand his English. The shop owner called and ask we don't send him over anymore.

Asked what said at the store. He insulted the owner saying "do you speak English"?

We have a busy repair shop, and retail tire shop. I fire idiot mechanics immediately due to safety issues. Got rid of 3 of them in a row in 3 months last year.  

 

[aak5454]

LOL

Mike, that sounds more like a frat house than a business. I had no idea there was any private ambulance companies. RE tends to attract more mature (older) people so I'd imagine you'd have less of that "fun" to worry about.

I agree 150% that most employees are mediocre on a good day. The younger employees I have are about as stupid as I've ever seen a human be. They are relegated to menial tasks like putting stamps on 5,000 envelopes, answering the phones, going to get office supplies, etc. But I have 3 who I almost never see.

They are all over the state evaluating properties unsupervised and doing a great job. They send me pictures and descriptions of each room of the property along with a detailed scope of work based on what they saw. By inputting the disrepairs in their tablet PC's, it automatically tells them how much it will cost to repair based on a lot of previous research. Before they arrive at a house we will have an agent send my office some comps and we determine a max ARV ahead of time. With those 2 numbers, they can then make an offer to the seller on my behalf, on the spot. They are really in the position to screw me over if they wanted so I keep them happy$$$.

Couple of very interesing points brought out which are the following:

1.  Goal setting--interestingly, I pay less attention to number of units, but set goals based upon gross rent collected and net income.  With recent acquisitions I've done, my goal of $250,000 in gross rents per year is well within reach for 2007.  As its been said, this is a business...its all about top line revenue and cost control which determines net income.

2.  Expandability of a business.  I have a full time job so this is my "hobby".  As such my number of hours is limited by how little sleep I need.  Of course, I use property mgmt companies, but there is always plenty to do done in paperwork, planning for turnover (i.e. opportunity for major repairs/upgrades) and of course, new property acquisition.