PROPERTY MANAGEMENT! 
Who is minding your Store?

In today’s unstable and inconsistent real estate market and with future values unknown,  the "BUSINESS OF CASH FLOW AND PROFITS" become ever so critical.  In the past this area of the single family residential rental portfolio was grossly over looked since the appreciation of the property dwarfed the profit of the operational side of the equation.  The future is different.  The purchase of a single family home for investment must provide a good return (cap rate) first and the potential of future appreciation is just that, potential.  If this theory is followed the investment will be a good investment regardless of valuation, up or down.  Future appreciation is just gravy and what has always made the real estate investment more rewarding and exciting than most investments.  The potential opportunity to make incredible returns was always there.  Not anymore.  Yes, it may and probably will happen, but if you purchased in 2003 to 2006, this did not happen and losses will never be recovered due to the willingness to depend on high leverage and absorb negative cash flow to buy the anticiapted appreciation. 

Today, the business operation (income and expense) of a portfolio will make or break the investment.  The PROPERTY MANAGEMENT COMPANY will be the quarterback to the income and expenses of this portfolio.  From determining the market rents (income) to the ability to get repairs and maintenance (expenses) done at reasonble prices and all points in between, including but not limited to: initial rehab (making rent ready) expense, HOA expenses and control (a daily fight), proper leases (sharing the repair costs with the tenant), setting the priorities with the tenant (losing the apartment living mentality), knowing he current market prices of all vendors ($40 hr plumber vs. the $75 hr plumber), knowing what needs to be fixed and to what extent, preventative maintenance priorities (incredible savings), add on fees and charges from the management companies (many hidden fees), insurance negotiations both on policy purchase and claims, using the right vendors, choosing the right tenant, smart handling of turnover (owners highest annual cost is turnover), Risk Reduction Programs, and many, many more areas of income and expense will determine the real value of this investment in today’s  returns vs. anticipated appreciation. 

CHOOSE YOUR MANAGEMENT COMPANY WISELY !

CLICK HERE FOR MORE ABOUT PROPERTY MANAGEMENT!   

Contact Valentine Sales & Management to discuss this in detail!