418: My Property Manager Robbed and Ghosted Me ($40K Stolen!) w/BiggerPockets CEO Scott Trench

Real Estate Rookie

BiggerPockets

How To, Education, Business, Investing, Entrepreneurship

4.8 • 1.7K Ratings

🗓️ 12 June 2024

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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Summary

If you get your property management wrong, you could lose tens of thousands of dollars. A sketchy property manager could take all your rent and run, leaving you with the bills and no hope of recovering your long-lost rent checks. That’s precisely what happened to today’s guest, a seasoned real estate investor who’s even looked up to as an expert in the industry. Even he made a sizable property management mistake, and in this episode, we’re trying to help you avoid the same fate. The BiggerPockets Podcast Network is bringing you a crossover episode with the Real Estate Rookie podcast’s Ashley Kehr and the BiggerPockets Money podcast’s Scott Trench. Scott is not only the host of BiggerPockets Money but also the CEO of BiggerPockets. And today, he’s sharing every painful detail about how he lost over $40,000 by hiring a bad property manager. This IS an avoidable mistake, but some easily overlooked red flags could put you in the same position as Scott unless you’re very careful. Scott shares the entire story and gives the top red flags to look out for. He’ll explain why he DOESN’T give his whole portfolio to one property manager, why you MUST set communication standards from the start, the questions EVERY investor should ask before hiring a property manager, and the fees you should refuse to pay the next time you outsource your property management. Need a property manager? We’ll share the best tool ANYONE can use to find a property manager TODAY! In This Episode We Cover Deadly property management red flags and signs you should run from a property manager Why you never, EVER give your entire portfolio to a single property manager/property management company Simple questions to ask that immediately show if a property manager is legit Negotiating fees and why Scott is okay with paying a higher monthly rate Communication expectations and what a property manager should be sending you EVERY month The easiest way to find a great property manager wherever you invest And So Much More! (00:00) Intro (01:31) Hiring the Property Manager (03:48) Things Start Going Wrong (06:23) Losing $40K! (09:43) Property Manager Red Flags (15:50) Questions You MUST Ask (23:45) Negotiating Fees (30:16) Asset Type Matters! (35:05) Communication Expectations (37:40) Vetting for Legitimacy (43:27) Find a GREAT Property Manager Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-418 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 418.
0:04.0	Real estate may help you get set for life,
0:07.0	but what happens when your property manager steals from you?
0:11.0	I'm Ashley Kerr and welcome to the rookie podcast where three times a week from you
0:15.0	the rookie podcast where three times a week we give you the inspiration, motivation, and
0:17.6	stories you need to hear to get started in real estate.
0:20.4	Today we have none other than Scott Trench investor, podcaster, author, and oh yeah,
0:27.0	CEO of the Bigger Pocket. He's come on today to share the impacts of his terrible property manager and ultimately how he has dealt with the aftermath.
0:37.2	Scott has been house hacking for the last 10 years and turning his primaries into rentals using the move-up strategy.
0:44.1	We will hear what red flags he started to see
0:46.6	and how much it costs him for his 13 unit portfolio.
0:50.3	He's also gonna give us tips for rookies so they don't end up in the same situation.
0:56.0	Okay, Scott, welcome to the show.
1:00.0	We're having you back again.
1:01.0	If you'd like to learn more about Scott
1:03.4	before we get started into his horror story today,
1:06.2	we're gonna link some other show episodes
1:08.3	that Scott has been on so you can learn more about him.
1:11.0	But Scott, thank you so much for joining us today.
1:13.0	Thanks so much, Ashley. I'm super excited to be here, although in the context of sharing a little bit of
1:18.1	an embarrassing person and costly loss that I had in my real estate portfolio in the last couple years.
1:24.3	Well I'm sure this isn't easy to open up about but we definitely appreciate you being
	...

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