A new story from Before the Millions
The ups and downs of real estate on the property rematch business. It's crazy right. It's been a crazy right. We'll get some crazy right. I want to know about that but I talked to you. Yes so I'm based out of Rhode Island and I manage property in Rhode Island and southeastern Massachusetts So did the chicken coop before the AGR- bag before the did you start. Investing and then guidance probably management or did you probably management's I can invest or. Did you kind of do both well. How how did that happen? Yes so I bought my first multifamily and I bought my first multifamily stabilized. It caught the real estate bug and I was trying to figure out. What do I do next so I started wholesaling? The first list that I'd mailed was owners with high hi equity other multifamily owners than I dove into very quickly probate list and then lastly inherited list. I've never received so many death threats for mailing list. Listen my life when I mailed that inherited lists like how'd you how'd you get this information. I'm like I'm just mailing a high equity list. It did not go. My First Wholesale Celio was a three family in Attleboro Massachusetts Hint. As soon as I got that phone call at the price on the phone. I knew that I could make it happen. I very quickly realized. Having conversations stations across those three separate lists who I was really good at speaking to and those retired landlords. That's what I was really boast entrusted. I've always been focused on. Achieving financial freedom and a friend recently has three feet at freedoms group on facebook so he talks about financial freedom time freedom and location freedom freedom. So that's what I've been more focused on recently I definitely have time freedom a little bit of financial freedom but it's all about that geography or location freedom trying to chase now so not. They're always trying to get a little bit better. And my goal was always to achieve that through passive income from real estate so it started with my first four unit property got into wholesaling but a second four-year property flipped a couple of houses and then I caught a bad review. It my full time job. So that was kind of that was kind of the push but during that whole process when I when I started thinking about property management when you've really break down the numbers to see what investor nets on a monthly basis per door on a multifamily property. It's really similar to the management fee. Be that a property manager makes so in our area Investors typically in to make one hundred twenty five to one hundred fifty dollars net per door on multifamily investment. Now it's going to be different in any area that you're in my miniature fees. Aren't that high outs. Middle of the road for in the market that we're in But they're very similar so I thought to myself. Hey if I don't have all this capital go buy a ton of properties. If I become a property management something that I enjoy the process that I like to live day in and day out then I can essentially build a property. Management Company escaped by nine to five gain. Some of that time freedom through the right systems. But but I'm essentially making the same as an investor would in part of the strategy behind that too. Is that if you build a great company you stand stand by your wording. Do the right things. There's an a life cycle to any investment right or a life to any investor. So you get in you. Buy Property hopefully hold for a long time. But eventually you're going to sell so if you've been working with a property manager for a long period of time you're probably coming to me I when you go to sell that property to ask ask me. Hey Jim do you want to buy it. You have investor that wants to buy it and I think it's a really cool opportunity as we continue to grow this business where five years young now but as our investor base starts to age in terms of the people that we work with. We're GONNA have more and more of those opportunities to purchase more property out of the portfolio. We already manage. It's an asset that we're familiar with. And there may be an opportunity for seller financing based on trust that we've built with those clients so that was really the thought process of why property management so. We've really focused on growing our management portfolio. Were just under seven hundred units today and then more easily even focused on working with the right clients as we see the writing on the wall that were very late in this real estate cycles you know we could. We could definitely talk about the investment side of things and also talk about the property giving management side of things but this podcast is predicated on lifestyle design. You name three things we look for time. Freedom you're looking for financial freedom. Location independence absolute. Those are the same. I'm exact things that I was looking for when I had a corporate W Job I was just like do like. I'm working seventy hours a week for somebody else. Paying half my money to the government in taxes about half is going to the bank and credit cards and student loans and that whole year my entire my entire sweat equity as gone to accompany accompanied hoping that has not recognized me for the work that I've been put in an I also andy fulfilment right. Because I was I was a big four accounting mazing. Yeah I was so I was always in real estate but but it sounds on. I'm just making sure the numbers add up so that we had right at my accounting from the clients that we had like they were seen success. They were seeing progress. They were getting their financials. Right based on what the big picture was and why they hired my firm. But I'm making sure the seven plus three as ten like I don't I don't get any fulfillment. I don't get any satisfaction so immediately just like do like I got to control my time again and you notice about it's about owning your own destiny. That's the biggest part right so as entrepreneurs a Lotta people joke that you know. We're working eighty hours so we don't work forty for somebody else but a lot of us are willing to put in that time because we own the outcome outcome and this is this is work right now. Jim Work Right. This is where the best. That's the best part that in these. I I really enjoy these conversations being on podcasts or talking with other entrepreneurs I had I have an apparel guy and then he also signs as well but he came out yesterday in. He works with a plethora of other entrepreneurs in the area and I always love calling them out. Because it's not just about buying another sign buying more Powell. Bree tells me stories about these other entrepreneurs preneurs and based on the business that I have it leads to other opportunities around Matt Right So when you talk about this being work that's the most exciting part. Art is like I get to deal with other entrepreneurs all day learns stories from them and hopefully this is a big golden nugget for the audience to whatever industry. You're in if you WANNA WANNA differentiate yourself. Don't look within the industry right so a lot of folks will look within the industry that they're in if I'm in Rhode Island Look Property Manager in California. Maybe your property manager for New York see the different things that they're doing and that's cool to a certain extent in terms of maybe trying to find the best technology to work with or you know a couple of other different things that you could take from from the leverage in your own business but I think that's really foundational if you want to build something massive you have to go to other industries outside of your own and bring bring those back so like look at apple recently. They're not looking at their competitors right in the different market segments that they're in now getting into the Financial World Wither Apple Credit Card right so they'll looking outside the four walls in different industries to figure out how to continue to expand and bring it home so if you want to be a successful entrepreneur like for me don't just look in the property. Management Industry Look at other local businesses other national businesses. That are doing really cool things and see if we can mirror some of that or bring back that that type of ideology back into art business. That is beautiful beautiful. I love that concept Holds true for every industry right for every lesson that we learned in life. I think is super invaluable to take those experiences and apply that to your current situation. That's beautiful Jim. Let's let's walk through. Let's let's help somebody mighty. Let's hope a few people build from scratch their property management business rial. You've done it you have you manage over seven hundred units but I wanNA talk about that the first one and maybe not your first one but I want I wanna I wanNA imagine individual food who who's on the list of this podcast mobike do it. I don't even know what took charge where to go what to say. Who to turn to? Where two finely? I don't know any of this stuff like give me like you know and I don't want you guys because you know people insight. Hey option so I'm still kind of hazy like I want to somebody a specific number to charge K.. Like charging six percent. We're charging ten percent right and then again you keep in mind that you were in the head of the first time property manager somebody who just needs to manage their first. They can leverage that right to build their portfolio love. This I've got a great story from this weekend. Yes so for years. I've asked my partner Chris our first client his name is Tim. He had a three family in a D. Neighborhood in Providence Rhode Island and for years on my Chris Tim that he was our first client. He's like Nah Nah. It doesn't matter. Data doesn't matter. Chris married on Saturday right so It's been a crazy week for me. As he's on his honeymoon and I'm trying to maintain everything but at Christmas is wedding. Tim was there and I walk up. This and I'm like hey how's IT Goin'. And he goes. You know that. I know that I was your first client right like in some. I'm like I'm glad that you're stuck with us. He's like you guys hit the ground running legitimate like victims of the problem tenant that he had we got in they returned heard it over. We've got all of his rents up in. He was able to sell that he came to us right and he said what do you think. It's worth like three or four years ago before the market really started take back off in in Rhode Island's always the last state of the nation. Come out of the recession and I told him I said listen. I think it's probably worth one sixty. He's like Hey Jim has really cool. I got an offer from one. Eighty five from analyst investor. I'M GONNA dump it when you try to sell it at one hundred and thirty before we turned it around and he couldn't get rid of it so that was a really cool story when we hit the ground running But Tim was a referral from Chris's now wife but then girlfriend. So I think if you're going to start your own property man business start with your natural network. There.