Home: Message List - Has anyone ever started a small real estate company?

Re: Has anyone ever started a small real estate company?

alm005 — Sat, 27 Dec 2008 17:24:19 GMT

Man your tough. But I got tough skin. I actually enjoyed reading your response to my blog post. It was very thourghly explained and thought out. You almost sounded like you had answer the question bout 100x. To be truthful about my business, my business doesn't necessairly have to be profitable. I make decent enough money from day trading. My initial ideal was to have anywhere from 3-5 properties max. I'm a mortgage loan adjustor for a BIG BIG BIG bank, that just recently just bought another BIG BIG BIG bank. This will be my last year working full-time. I wanted to somehow apply my knowledge as an loan adjustor, my overall knowledge of the real estate industry, and my business connections to form a minature holding company of some sort. I do have about an 18 month horizon, thats mainly due to my capital being tied up in stock investments (mainly gold). I'm a Gold Bug, and I expect to see gold back up around $1000 real soon, citi is qouted for saying Gold being around $2000. I think they are either dead on, or way off. So i'm dividing their opion by half, and I really do see gold hitting 1000 bucks. anyways enough bout that. Lets say hypotehically I have between $150k -$200k,will that be enough to hire a personal attorney, finanical advisor (I am one by the way), accountant, maintence... I can easily answer your question (no it wont). Your post gave me great insight, made me think more as to what I really want to accomplish and how I want to accomplish it. Once again I would like to thank you for your post, it was really helpful. I think after reading your post, I have a better direction of where I want to take my business.

Re: Has anyone ever started a small real estate company?

DomainDiva — Mon, 29 Dec 2008 13:45:17 GMT

Remember that if you are selling for tax purposes you cannot buy the stocks back for 30 dasy, it's called the wash rule.

Re: Has anyone ever started a small real estate company?

DomainDiva — Mon, 29 Dec 2008 13:43:16 GMT

What we were told (from a salesman for the Texas branch of this developer) was that a contract was signed, monies were put up by the buyer but the final price of the house was determined when the house was fininshed and appraised. (Sorry if I did not communicate this well). Personally I thought it was crazy, and that it would be illegal for a company to do so.

Re: Has anyone ever started a small real estate company?

DomainDiva — Sun, 28 Dec 2008 22:59:36 GMT

Linda I owe you an apology it seems you are not ValCards, at least not from your posts. The water alarn website link alerted me.

The Vegas market was crazy at one time, we heard from a salesman that prices were not being locked in when the contracts were signed, is that true?

Re: Has anyone ever started a small real estate company?

miche369 — Sun, 28 Dec 2008 21:39:24 GMT

Hi,
I currently have a small real estate company and have been successfully investing and helping others invest since 1986. Our focus now is of course short sales and foreclosures. If you would like to talk about your ideas further e mail me at amw@royaldrive.com

Re: Has anyone ever started a small real estate company?

EyesofTexas — Sat, 27 Dec 2008 22:43:38 GMT

Lucy, I'm a licensed Realtor and my husband and I own a very small property management business (12 doors). We'd like to greatly expand the property management business -- I'd like to email/talk to you more about this. Would you contact me privately at mjglendenning@austin.rr.com . Perhaps you can give me some ideas on how to pick up additional owners/investors?

Marilyn

Re: Has anyone ever started a small real estate company?

LucyLou — Sat, 27 Dec 2008 22:30:13 GMT

Interesting. If you want to mail me some brochures, I'll have my lady put one in each owner's packet.
Am I allowed to give my company name and address on this site? I only joined today.
Thanks,
Lynne

Re: Has anyone ever started a small real estate company?

LucyLou — Sat, 27 Dec 2008 21:57:47 GMT

I started a real estate firm that offers property management in 2002 in a small suburb of Charlotte, NC. I found that offering the property management service compliments the sales perfectly. I work with investors, sell them a property (make my comm.), manage the property for them, (50% of the first months rent, 10% per month thereafter), turn my tenants into buyers and sell them properties, move new tenants in and keep the cycle going.

We grew VERY quickly and are now the largest management firm in the county. If there has been a "downfall" it has been that by offering the property management, we grew more quickly than we were prepared for.

Property Management will always be a thorn in your flesh, regardless of your attempts at organization.

My tips would be:

Make money off of repairs by obtaining a good relationship with a licensed, insured contractor and disclosing the relationship. In exchange for the contractor getting all your repair leads, have them take all the repair calls....no after hours employee expense for you. Repair calls are by far the most time consuming aspect of property management. Obtaining property authorization for repairs..etc. Put this off on the contractor to deal with in exchange for the volume of business that they receive without having to pay for the leads.

Consider making money from other investors instead of purchasing with your own money. Purchase your own investment properties as additional income. Let the agents make money for you as the property management accounts give you residual income. The investors will buy more properties as they see the hassle of ownership removed.

Join a good, tenant screening network and make the tenant application pay for the fees.

Make everyone at the office hold a valid license.

Don't waste your money on advertising. Use yard signs, directionals and a good company website. It will be all you need for the rental properties and let the agents pay for their own sales advertising.

Invest in a good, money management system that is approved by the real estate comm.

Have an accountant audit your books monthly for a minimal fee. It will be worth every penny.

I've done this and flipped houses on the side at the same time. I think it's a good combination. The rentals carry you during hard economic times. AND...my tenants pay. They know they want to buy a house and they know I'll evict them if it's not in on time...no excuses.

Good Luck!

Re: Has anyone ever started a small real estate company?

alm005 — Sat, 27 Dec 2008 17:28:25 GMT

Lake Fronts, that sounds nice. I can picture a lake front view in alaska or upstate new york w/ the snow. But dont quite have the millions yet, who knows in 10 years, that could be a good ideal. Thanks for the input

Re: Has anyone ever started a small real estate company?

Maddeb — Sat, 27 Dec 2008 17:17:22 GMT

Although I have not, I do know people who have. One friend owns and rents. He averages about 100 dollars per month per profit per unit. But durnig these economic times, gettin paid on time is hard for him. We know its a buywes martke, not a sellers, but as more and more loose their homes, they turn to renting.

I also know a couple that flip in the realestate market. They focus on lake properties, as they are about the strongest realestate market in todays economy. However, it requires millions to purchase, renovaten demo/rebuild on valuable lake front realestate. God is certainly not creating anymore ocean fronts, and true lakes. Something to think about if you want to remain in realestate, and have the capital or partners to venture with.