Having a property manager to handle your properties doesn’t mean your work stops there. Passive income doesn’t mean just waiting for a check because there is no such thing as mailbox money. Even though they're handling the day-to-day operations, you still want to be on top of it.
Today’s guest, real estate investor, Ken Naim, shares some things you should know about before hiring a property manager. Even if you're hiring other people to do it, you have to manage them – and manage them well – to make sure everyone working for you is on the same page.
Here are some power takeaways from today’s conversation:
Episode Highlights:
[04:10] Tips for Transitioning into Commercial Properties
Ken recommends only dealing with rockstar brokers because you want the best in the business. They're the ones that are going to get all the leads and get all the off-market properties. And if you find brokers where your gut feeling is telling you to run away, then that's what you should probably do.
Once you’ve found the right people, you’ve got to tell them what you want. Break down what your criteria are so they will understand what you’re looking for. The more specific you are, the better it is. Once you close a deal with them, then you become their first call because they know you can close.
[10:41] What are Value Add Properties?
Value add properties refer to commercial properties that are not fiscally or physically attractive, but once improved, then increase in value. Commercial buildings are great from this aspect. You won’t have to wait for the market to appreciate because you can create that appreciation yourself.
[16:27] How to Manage Your Property Manager
Being involved early on in the management of your property gives you a better understanding of how much things cost. You start to understand what property managers can do to a property and how to protect yourself. It helps you set up the property the right way so you have the least expenses going forward and you don't have to redo the same thing over and over.
Once you’ve found a rockstar property manager, pay them what they want, give them what they need, send them referrals, send them business. Show your appreciation, and make sure that they understand that you're you're serious, and you want to build the relationship with them
Resources Mentioned:
Email: ken@beaconoffices.com
