First Time Investors: How Do You Start?
I Just Bought An Investment Property…
As an Investor it is important to keep purchasing investment properties. For first time investors, this can be a daunting task, especially when investing out of the area. A lot of first time investors will go and give their property to a property management company without knowing any other options.
What Have I Done?!?
For example, we had a Client call us and tell us that he had just purchased an investment property which needed a lot of work. He had given that investment property over to another management company prior to talking with us. He let them have free reign over the maintenance process and even gave his credit card number over to the property management without setting any limits whatsoever.
Needless to say, he was very surprised when two months later property management called to say that the work was done, but when he checked his statement he found a five figure bill to fix everything! Not only that, but the property management was renting the property for less than he had agreed to.
What Do I Do Now???
Because this property owner had given his management free reign and didn’t check his statements for months at a time, he was taken advantage of. When he had come over to us we put him on an online portal so he could access his statements 24/7 from his computer or his cell phone. Not only that, but we had put limits on repairs to make sure that any repairs over a specific limit would be okayed with the Owner. Today the Property is closer to being stabilized, but the Owner is still trying to recoup the five figures in repairs that the previous property management had put in place.
If you have any questions, please feel free to reach out to me and I can always give my advice.
Until Next Time,