If your as skilled as Steve and manage to accumulate over 130 properties, how do you manage all of them ?
Ie. repairs, keeping track of when leases are due to be renewed or finding new tenants, ensuring the tenants are up to date with the lease, end of year tax decarations must be very time consuming, etc
If you hire an extra person to look after all this then your positive cash flow profits are spent on staffing.
Do you arrange to have a Real Estate Agent manage the portfolio ? which would be a cost.
Regards,
Arty.
[?]you don’t
huh ?
You need to keep an eye on your investments though ?
Regards,
Arty…the confused one…[xx(]I am also very interested in how to manage multiple investment properties successfully with the minimum of effort. Any advice and hints out there? Managing 130 sounds like a full time job in itself!
We have 8 IP’s and our PPOR and we do spend a lot of time and energy “keeping track” of this small portfolio of properties.
We employ a PM for six of them and manage two ourselves.
We intend to purchase more properties and are actively sourcing them but are concerned about our ability to manage more than we currently have and still have time to fit in all our other commitments and activities.
VERY impressed with this discussion board and the opportunity of chatting with like minded people creating wealth through property. In fact, I’m becoming addicted to the board!
Happy investing[
]Yes this board is very addictive callum![
]. If you had 130 properties +ve cashflow you would not need to work so you could spend your time looking after them. Not all of your time though, of course, because you would be missing the idea of financial freedom. I guess along with making a plan to aquire 130 properties would be the need for a plan to maintain them. Im havent read Steve’s wealth protector but I guess something about this would be in there??Cheers
Wilko[8D]
..Seems like there is no answer……
If you have 130 properties… and financial freedom… you spend the time running around looking after the properties you have anyway…
so you wouldnt have much spare time for yourself anyway…
…still concerned..
Arty.
[]But isnt that the whole idea of this site… to positive gear cash flow and accumulate property…
You need to accumulate a fair amount of properties to replace your salary to become financially free…
Without a plan to manage them you will get more problems than you can handle.. if you pay an agent to assist your wasting your positive cash flow on agency costs….
So does anyone have an answer ?
Arty.
[]That’s what we’re worried about – financial freedom sounds great but at what cost if you have hundreds of properties to look after or keep your eye on.
Fair enough a PM could take some of the work load but you would have to seriously “keep you eye om” the PM too. We all make mistakes.
There must be a simple answer to this dilemma though. How does Steve do it? Any ideas anyone?
The other thought we had was, how many is enough?
How many IP’s do we need for financial fredom? I guess this is a personal decision, and of course we have given this some thought but maybe we’ll have to cut back a bit on our original ideas so that we can manage them comfortably.
Don’t want to take on any extra unwanted unnecessary stress that is going to detract from the enjoyment of financial freedom.
Hope someone out there has got some ideas. [?]
Hi guys,
I think the trick is to find a PM who is actually proactive (just how you do this, im not so sure – maybe by interviewing them, just like u would if u were offering them a job!)
I just dont understand tho, why anyone in their right minds would want to both build a property portfolio AND manage those pptys themselves! I think theyre mutually exclusive.
If it costs you 5 to 7% to get them managed by experts (and as above, youve gotta find a PM whos an expert, but im guessing it can be done!) WHY WOULDNT YOU!
I just SO couldnt be arsed, fixing sprinklers, finding new tenants, making sure the carpets are clean etc etc etc!
I think if i had to do this, id ratehr stick with my J.O.B (just over broke).
Get a professional to do it, and save urself all the hassle
” This has been my two cents worth”
When you have 130 properties to manage it
is probably cheaper to pay someone full
time to take care of them.Think about it, 130 * 100pw = 13,000.
$13K at 7% is 910 pw which you could pay
a manager to give your properties
undivided attention.Additionally, find someone who is also
handy and you’ve got your maintenance in
the package.Also, the rents now come directly to you,
if the rent is paid fortnightly, you get
it fortnightly instead of waiting for the
agency to do their monthly accounts.andy
An idea:
By the time you have 130 properties, the average rent will probably be about $200 pw. The estate agent takes 10% to manage it, or $20 pw each. That’s $2600 pw. So you sack all the agents, and get your own PM to do what they do, PLUS pay the rates, call the repairman etc etc. Since you are going to get good tenants and be very nice to them, you won’t have to re-let very often.
All you need to do is find someone who will do that for $135k pa. Hey, if I give up my day job, will you let me know when you reach 130???
Of course, if you have cheaper (country etc) properties you may only be getting $100 pw and be able to pay the PM $67k pa!!
Does this work???
For the $135k salary you’d want to get someone with extra skillls, eg accountant, licensed estate agent or whatever.OR a really good speaker to do your seminars for you when you decide to spread the word!!!
Pardon the ignorance, I have not actually read Steve’s book yet, but surely lots of those 130 are wrapped? If this is the case, you don’t need to “look after” the properties, as the new tenant/buyer will.
Dan.
If you want an extraordinary life you have to be prepared to do things that ordinary people aren’t prepared to do.
Many Thanks for your answers!.
It sounds like a dedicated private PM is the way to go then.
Regards,
Arty.
[]I think Dan the Man has hit the nail on the head. Think about it – the Commonwealth bank doesn’t fix the hot water system for you when it stuffs up, do they? So why should you fix your buyers properties??
Have a great day!
Marco
That maybe the case for wraps… but if you want to retain the +ve property, then you need to maintain it too.
I would like a +ve cash flow ongoing to live off, and retire on.
If the IPs are worth selling off due to high CG then I may sell, and roll the profit into a new IP… etc….
But this is all theory for now ..
Im still reading the bible….”0 to 130 properties….”Regards,
Arty.
[]
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]. If you had 130 properties +ve cashflow you would not need to work so you could spend your time looking after them. Not all of your time though, of course, because you would be missing the idea of financial freedom. I guess along with making a plan to aquire 130 properties would be the need for a plan to maintain them. Im havent read Steve’s wealth protector but I guess something about this would be in there??
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