BiggerPockets Real Estate Podcast 618: Seeing Greene: Is My Property Manager Skimming Off the Top?
Jun 5, 2022
Discover the intricate world of property management and learn how to spot red flags when your manager isn’t communicating. Explore the balance between launching a business and investing in real estate for sustainable wealth. Gain insights on the importance of return on equity versus return on investment. Dive into essential management strategies, from managing repairs to navigating financial hurdles, and understand when to pursue partnerships for growth in a competitive market.
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Balancing Business and Real Estate
- Leverage house hacking to start real estate investing with minimal capital.
- Focus on business growth initially, reinvesting profits until you can fund real estate purchases.
Return on Equity vs. Return on Investment
- Return on equity (ROE) is a better metric than return on investment (ROI) when properties appreciate significantly.
- Consider redeploying capital when ROE is low, but factor in appreciation, effort, and closing costs.
Choosing Joint Venture Partners
- Choose partners based on complementary skills, not emotional security.
- Seek partners with experience and resources who enhance your business.
