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:
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- 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
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