I received a phone call yesterday from a local man who is assisting his son with purchasing an investment property in the area. He was referred to me by a long-standing client who went to college with his son....after asking me many questions on our current rental market, he advised me that his son was working with a local Realtor who had suggested a property at XXXXX address. DUDAH!!!! It might be a good BUY; however, it is NOT a good property to expect a positive cash flow with the $$$DOWN son was willing to pay....too far out, not the more desirable school system and very little socialization for incoming new residents......this is MORE important than many realize.....I suggested some alternative properties of similar price - one a BRAND NEW PROJECT where son could purchase for Spring 2010 delivery/possession and get to choose dual sinks in master bath, upgrade carpet, etc.....all desirable and less than 5 min from one of the area's BIGGEST employers.....a "good deal" going in (short sale) is not necessarily a good deal for the investor wanting to buy and hold for the long term.
NOW Sharing the life and spice of the GC one day at a time - Grand Canyon, AZ
Suzi Woods, Prior Independent REBroker in MS
This is great advice Wallace. The less desireable elements such as style and location automatically require more re$erve in my opinion.
Sep 08, 2009 11:30 PM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer
Thank you Suzi * give me the RIGHT property to manage and I'll get you the BEST rent, keep it RENTED and take CARE of IT with minimum $$$$....I LOVE brand new properties!!
My "head scratching moment" is that the Realtor agent did not get suggestions from a property manager BEFORE even suggesting the property in the first place?
Sep 08, 2009 11:44 PM
Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL - Lansing, IL
SFR, SRES, CNC
Wallace, this is just the natural way we flow... KNOWING what rents in which areas and for how much. It's to an investor's advantage to inquire from a property management's perspective... they will have EVERYTHING to gain! Excellent post.... as usual! Thanks for bringing this up!
Sep 09, 2009 02:25 AM
Charles G. Perkins, CPA - Burien, WA
Wallace,
I have considered properties in other states, but realize that I need good professional advice and a property manager. If the property cash flows and otherwise makes sense it would make sense.
Sep 16, 2009 06:30 PM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer
Charles * If for nothing else, GOOD PMs KNOW where renters want to RENT....which is very often not where buyers want to buy!!!
Sep 16, 2009 11:56 PM
Libertas Holding Inc. - Calgary, AB
Thanks for your thoughts...I don't think enough realtors put enough thought that a PM on their team or in their contacts when working with investors or the general public would lead to more purchases with those investors. It is a good strategy as Property Management is the key to long term financial growth of your real estate assets, stability and peace of mind with those investments, freeing up an investors ability to close more deals.
I always say that a good PM will allow an investor to own more property than if they did it on their own.
Sep 19, 2009 04:25 PM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer
Keenan * in over 40 years of fee property management, I've given 100s of listings to Realtors that were in GOOD condition (often better than when the owners lived there) and many times with good, well-paying renters....using a good property manager puts EXTRA $$$ in an agent's pocket - either with a referral fee or unpaid assistance during the due diligence period of the purchase.....thank you for your comment!
Sep 19, 2009 11:24 PM
Rainmaker
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Wallace S. Gibson, CPM
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