Author Topic: Where to start?  (Read 3255 times)

ECrew28

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Where to start?
« on: July 12, 2012, 01:53:06 PM »
So I have always been involved in the trades in some matter or another.  I have wanted to get into property management since I can remember.  My family was involved in commercial real estate for awhile, and once I worked with/for them, I had the bug.  It is something I would like to get into more in a residential level than a commercial.  Where do I even start?  What sort of money should one have set aside before embarking on this journey? 

arebelspy

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Re: Where to start?
« Reply #1 on: July 12, 2012, 07:46:34 PM »
I have wanted to get into property management since I can remember ... Where do I even start?

Start with researching your state's laws.  Some require that you be working under a licensed real estate broker.  Others will let anyone be a PM.  Check your state laws first.

Then you basically have three routes:
1) On your own, small time.  Advertise on craigslist, call out of state owners, etc. and just PM yourself, small time.
2) On your own, larger scale.  Start your own property management company, with employees.
3) Get hired by a current property management company.  Work for them.  (A good option to "learn the ropes.")

Little to no money should be required, save possibly option 2. 
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

ECrew28

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Re: Where to start?
« Reply #2 on: July 19, 2012, 03:33:28 PM »
I think I kind of mis spoke here.  I want to get into the rental market side of things, so in essence I would be my own property manager.  That being said, how have people gotten started in the rental market? 

arebelspy

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Re: Where to start?
« Reply #3 on: July 19, 2012, 03:53:23 PM »
Ah, you want to become a landlord.  You may regret that.  ;)

Nord's wisdom on the topic is solid: Watch two movies (Pacific Heights with Michael Keaton and Melenie Griffith and The Money Pit with Tom Hanks and Shelly Long) and read two books (Investing in Real Estate by Gary Eldred and Landlording by Leigh Robinson).  If you still want to be a landlord, may god help you.  :D

Further, I'd add.. after watching Pacific Heights, read this article from May 2011:
http://blog.nj.com/njv_barry_carter/2011/05/carter_newark_man_acts_as_his.html

And the follow up September 2011:
http://blog.nj.com/njv_barry_carter/2011/09/carter_even_on_a_family_outing.html

I recommend beginners start with the book Building Wealth One House at a Time - it's a great place to start with an overview of the whole process, IMO.  Only real flaw is his appreciation assumption numbers.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Another Reader

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Re: Where to start?
« Reply #4 on: July 19, 2012, 04:11:08 PM »
Ah, the "vexatious litigant."  Fortunately, Arizona is a bit more landlord friendly.

ECrew28 - have you ever owned real estate?  Sometimes buying an inexpensive starter home in a high demand rental area and fixing it up as your personal residence is a good way to start.  You get favorable financing and build sweat equity.  Rent it out after a year, rinse and repeat.  Before you start, do your homework at the library, as Arebelspy suggests.

hardworkingpenguin

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Re: Where to start?
« Reply #5 on: August 07, 2012, 03:19:07 PM »
Check online resources. I recommend http://www.BiggerPockets.com.
Start small. Call out of state landlords who are tired of managing tenants.
Look into master leasing.
Get access to the MLS to see market rents.