managing yourself..

Davlyn,

Great question you ask … Most people who wrap do the paperwork themselves and look for an all emcompassing software solution to manage their properties for them … and you can pay big money $2,000 – $3,000 to get them.

I have wrapped 10 properties and one thing I HATE is the paperwork and administration that comes with it. Therefore I took a leaf out of Rick Otton book and went off to find a company that would do my cashflow and property management for me. After talking to 8 real estate agents and 1 accountant I have been able to negotiate a real estate agent to manage all my properties for me for 4% (around $40 – $45 per month per property). Therefore if I make say $460 profit spread off a wrap property, for under 10% of it I make the investment passive. To me that is a great scenario. She looks after all the rates, insurance, loan repayments and buyer communication.

Administration will become a very very small part of my work load. I wanted wrapping to become non-relant on me living and breathing so that I know that I can go away on holiday or die tomorrow and the income would still come in month after month to my family’s trust account without my family member having to know the indepth details of how the business operates.

One other thing that someone told me is that you make much much more money doing new deals that you do administrating the business. By negotiating a real estate agent to manage my properties it frees up my time to do more deals … Currently I am trying to actively wrap another 4 properties that I have on the go at the moment.

Regards,

Jason Moore

Darren,

I use to use a similar company, but I still have to do all the administration work etc. The thing I do not like about those companies is that they take of money any day in the previous week and only dispurse it to you on the following Tuesday or Wednesday. As most of my people get paid at various times of the, if one of my buyers pays weekly on a Monday, under the Ezypay system I would have to wait a week and a half to recieve it. Not too crash hot!

Under the arrangement I have with the real estate agent, the money is direct debited the day prior and it is in their trust account the next day. Simple! Also using the agent, buyers feel the personal touch and not a number as they would with Ezypay. I want my buyers to give me tonnes of property and homebuyer leads in their local area and a friendly environment tends to promote it.

Also I now have access to the real estate agents 140 rent roll that I can do a monthly mailout to and I get first pick at the best deals they get and the agent says to the vendors when she lists properties “We can put it on the market for $100,000. However, if you need a quick sale and no hassles I have someone who will sign the contract today for $85,000, do you want me to call him”.

In the end, that is the way I like to operate.

Regards,

Jason Moore