Acquiring Management Portfolios

During the last several years some owners of real estate sales companies have ventured out into the property management world. Some have been successful. Some have struggled and have decided to rid themselves of the additional problems they have taken on. Occasionally, the venture, which was originally initiated in hopes of finding a stream of revenue, only ends in a mound of paper work, tedious bookkeeping and a voice mail box full of messages from tenants who can't get maintenance issues resolved and owners who have not received their monthly checks.

Property Management is not for every Realtor. Every Realtor is not cut our for property management. Often, after attempting to manage properties for a year or two, some attempt to sell their portfolio. Most times the asking price is derived from a perceived future value of expected rents. Most times, the portfolio will be snapped up by an unsuspecting Realtor who believes, in all earnestness, the price paid was fair. Unfortunately, it may take a year or longer for the buyer to realize rents are not being paid as expected, some properties are in poor condition and in need of repairs and a percentage of the owners have been scouting new property management companies. In other words, the portfolio does not have the value as originally believed and the true value is diminishing rapidly.

Buying and selling property management portfolios is not a subject on which you'll find many text books. Many times, experience is the only teacher. The lesson may be well learned, but very costly.

If you manage properties and are considering liquidating your portfolio, call me to discus your goals.

Jack McSwain, PRM, Realtor
Managing Broker
Walter Williams Property Management
12420-2 San Jose Blvd.
Jacksonville, FL 32223
904-886-8842
www.jmcswain@cbwwcorp.com