Mar 26, 2019
This is the last one in the Six
Pillars to Profits series. Pillar 6 is the Secrets to Being a Great
Operator. How can you make phat money in deals to get some
paydays?
I’m going to give you some of my
successful secret tips and tricks. If you do these things, you can
get a lot of juice that’s worth the squeeze!
Topics on Today’s
Episode:
- Operations is where you go to make money; don’t
manage your own companies
- Do’s
and Don’ts: Questions to ask management companies to determine if
they have systems and processes in place:
-
- How
do they take tenant’s money?
- How
do they do ACH?
- What’s the lease-up process? Is it written
down?
- What’s your training process? How do you train
your employees? Is it online? Is it offline? Is it
both?
- Do
you require your manager and your maintenance person to live on the
property? Or, do you want them off property?
- What
accounting systems do they use? Is it Yardi? Is it Rent Manager? Is
it AppFolio?
- What
do you think the #1 thing is to generate profit or money at the
property?
- Ask
situational questions: “Tell me about a time…”
- Putting together a deal involves partnerships,
structures, and knowing your operating agreement
- Communication Reporting/Accounting: Get reports
of complete financials from your management company every
month
- Management Styles: Avoid one-to-one
relationship; use straight vertical line where different people in
different situations deal directly with your property
- Don’t
be in a hurry when doing repairs, be patient; always look like
you’re doing something on the property - do little things that make
a big difference
- Typical management company charges you 3% to 6%
in fees
- Management companies do most of the heavy
lifting in this business; look for their guidance and cost per
door
Links and Resources
Mentioned:
Quotes:
“Truly, the real profit is made
in the operations. I personally believe that you shouldn’t be
managing your own companies.” Corey Peterson
“Communications happen directly
from the management company to the person that needs to hear it. I
believe that’s the best way.” Corey Peterson
“We’re in the people business.
The people make the difference. You’ve got to have someone that’s
nice and kind, but also knows how to carry a stick and is not
afraid to use it.” Corey Peterson
“We’re never in a hurry when
we’re doing our repairs. We’re always doing something on the
property. Always making it a little bit better, always making it a
little bit nicer.” Corey Peterson
Don’t forget to download
my Free Workshop Quickstart Video
Series, and if you like
what you have heard please
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kit for single family.