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This will be a 30-day thread on how to manage a building on a budget:
This will be helpful for anyone wanting to learn about how to save money and manage your own properties
Enjoy :D
This will be helpful for anyone wanting to learn about how to save money and manage your own properties
Enjoy :D
Day 1:
Why should you self manage?
I think its particularly useful when distinguishing yourself from others, especially when your time is worth less than money.
I pursued this when I was younger and now I have a thriving management company next to my RE portfolio
Why should you self manage?
I think its particularly useful when distinguishing yourself from others, especially when your time is worth less than money.
I pursued this when I was younger and now I have a thriving management company next to my RE portfolio
Day 2:
When I started off managing my first building I shopped quotes for cleaning of an upstairs common area.
$600 dollars a week was the lowest
So I went and scrubbed the toilets and mopped the floors every week.
Paid myself hourly and a management fee through NNN
When I started off managing my first building I shopped quotes for cleaning of an upstairs common area.
$600 dollars a week was the lowest
So I went and scrubbed the toilets and mopped the floors every week.
Paid myself hourly and a management fee through NNN
Day 3:
Only pay professionals for things you cannot do.
Pay a professional to hook up pipes and lights
Do not pay a professional to redo a floor, take out an appliance or repaint trim
Money is made in management by using yourself or employees to deal with these issues.
Only pay professionals for things you cannot do.
Pay a professional to hook up pipes and lights
Do not pay a professional to redo a floor, take out an appliance or repaint trim
Money is made in management by using yourself or employees to deal with these issues.
Day 4:
Need to redo a bathroom?
Do not call a contractor. Instead, go to home depot and youtube. Rip out the floor call a plumber and an electrician to do the hard stuff.
During my first deals, I replaced many floors and redid a few bathrooms.
It will save you 20-30k
Need to redo a bathroom?
Do not call a contractor. Instead, go to home depot and youtube. Rip out the floor call a plumber and an electrician to do the hard stuff.
During my first deals, I replaced many floors and redid a few bathrooms.
It will save you 20-30k
Day 5:
Stop using hardwood or tile floors in your common areas. Instead use fake wood floors.
You want your floors to be easy to clean and to not be white.
It is a maintenance nightmare to put real wood or tile floors in.
Stop using hardwood or tile floors in your common areas. Instead use fake wood floors.
You want your floors to be easy to clean and to not be white.
It is a maintenance nightmare to put real wood or tile floors in.
Day 6:
Organization is key to building management. Buy a lot of plastic bins to organize supplies at your buildings.
I keep all my cleaning supplies in plastic bins labeled.
This enables you to be able to higher temporary work with little instruction
Organization is key to building management. Buy a lot of plastic bins to organize supplies at your buildings.
I keep all my cleaning supplies in plastic bins labeled.
This enables you to be able to higher temporary work with little instruction
Day 7:
If you are cleaning and need to vacuum by a backpack vacuum.
This type of vacuum saves time and makes your building turnover quicker when cleaning.
Efficiency is sometimes worth the extra cost.
If you are cleaning and need to vacuum by a backpack vacuum.
This type of vacuum saves time and makes your building turnover quicker when cleaning.
Efficiency is sometimes worth the extra cost.
Day 8:
When I clean my buildings I use pine sol mixed with water and Windex.
Use the pine sol for most everything.
I use Windex for porcelain and shiny objects.
Don't overcomplicate and look to save money on management as it can drastically improve profits.
When I clean my buildings I use pine sol mixed with water and Windex.
Use the pine sol for most everything.
I use Windex for porcelain and shiny objects.
Don't overcomplicate and look to save money on management as it can drastically improve profits.
Day 9:
Make sure all your common area doors are using the same locking mechanism of interchangeable cores.
I use falcon locks on all my doors.
Instead of removing the entire doorknob I simply just remove the core when the tenant leaves.
Make sure all your common area doors are using the same locking mechanism of interchangeable cores.
I use falcon locks on all my doors.
Instead of removing the entire doorknob I simply just remove the core when the tenant leaves.
Day 10:
Systems are everything in management. Make sure to first create your management systems (how you will pay bills etc..)
Then make sure to document every single process. Therefore any employee can complete any task if need be.
Systems are everything in management. Make sure to first create your management systems (how you will pay bills etc..)
Then make sure to document every single process. Therefore any employee can complete any task if need be.
Day 11:
If you are looking to manage your portfolio then make sure your buildings are all within a close distance to each other.
If they are spaced far away from each other it will eat in to profits by the way of extra work hours and transportation costs.
If you are looking to manage your portfolio then make sure your buildings are all within a close distance to each other.
If they are spaced far away from each other it will eat in to profits by the way of extra work hours and transportation costs.
Day 12:
Once your management company is large enough invest in either sprinter vans or transit vans
I have a few and they are amazing work vans. You can deck the inside of them out for whatever job you need
You can also pile quite a few people in the back (No windows)
Once your management company is large enough invest in either sprinter vans or transit vans
I have a few and they are amazing work vans. You can deck the inside of them out for whatever job you need
You can also pile quite a few people in the back (No windows)
Day 13:
Do not put logos on your management cars. Anything related to your management company should be incognito.
You don't want other drivers, city officials, permit people etc.... to see your logo on your truck.
If they can identify you they will send the bill to you.
Do not put logos on your management cars. Anything related to your management company should be incognito.
You don't want other drivers, city officials, permit people etc.... to see your logo on your truck.
If they can identify you they will send the bill to you.
Day 14:
Permitting every little thing in your building is a nightmare. If you have a non Class-A building it is not worth the time.
Part of management is knowing what to take the extra time to do and what to not bother with. This includes permitting.
Permitting every little thing in your building is a nightmare. If you have a non Class-A building it is not worth the time.
Part of management is knowing what to take the extra time to do and what to not bother with. This includes permitting.
Day 15:
Structure your leases differently depending on the location of your properties.
My properties in lower-income areas contain a lot of provisions such as nuisance clauses, specific trash clauses and more.
Don't use one template for every single unit you have.
Structure your leases differently depending on the location of your properties.
My properties in lower-income areas contain a lot of provisions such as nuisance clauses, specific trash clauses and more.
Don't use one template for every single unit you have.
Day 16:
Don't use small tiles in your bathroom. It creates more grout and thus more spaces for dirt among other things to stick to your floor.
I use laminate hardwood on office floors and laminate tile in bathrooms.
Remember the most important thing is ease of cleaning.
Don't use small tiles in your bathroom. It creates more grout and thus more spaces for dirt among other things to stick to your floor.
I use laminate hardwood on office floors and laminate tile in bathrooms.
Remember the most important thing is ease of cleaning.
