On this week’s podcast, Dr. Matt Motil interviews Jason Hull about his company DoorGrow. We talk about why a real estate investor needs good tenants and how DoorGrow helps keep the shitty ones away from your rentals! Jason gives a ton of insight on his company and some great tips.
Jason and I have known each other for two years now. He is in a unique business because he helps property managers grow and scale their business. Property managers are important because many investors want to be passive or realize being a landlord is harder than they anticipated. DoorGrow will help property managers be better. Jason is married to his business partner & wife Ashley. Together they run their businesses & are raising their 3 daughters & son from their home in Valencia, California.
Check out this latest episode where I interview Jason Hull about his company DoorGrow. We talk about why a real estate investor needs good tenants and how DoorGrow helps keep the shitty ones away from your rentals!
Real Estate Investments are Not for the Faint-Hearted
People think the investments are easy and turnkey. If you actually believe this you probably don’t know what is going on with your property. There are new laws always coming in and tenants can be nightmares. In the US, we have about 20-30% of single-family properties being professionally managed. That is such a low number and some believe that it’s actually lower than that. The residential real estate investing will probably move to something more like Australia’s style. 80% of their homes are managed by professional property managers. It will cost an investor less to hire a property manager than it would to pay for legal fees (because they are not up to date on legal matters) or to deal with a vacant tenant loss.
The biggest myth is that entrepreneurs are better or faster than everyone else. This myth makes a person think they can do the property management better than a professional business or that they can fix the electric when they are not an electrician. That kind of thinking can turn you into a slumlord. As a real estate investor, your biggest challenge is trying to maintain cash flow or growth. You have to know when to let go of some of your responsibilities!
Not all property management companies are the same. There are many companies out there that don’t need to have licensing or anything that really qualifies them to be managers of the property. A majority of the licensing that is required is a broker’s license and that only pertains to real estate. It has nothing to do with tenant legalities and property laws! Realtors are salespeople (whether they want to admit it or not) and doing all that paperwork and keeping up with those tiny details of property management are not the same.
To make a real estate company make double their money (especially if they do property management on the side), they need to drop real estate from their branding. If they focus solely on property management they will get tons of leads because they know the investors that might want to sell their properties. The property managers are also more in contact with the real estate investors, sending them rent checks and taking care of their properties, whereas a realtor might contact them once a year to see if the investor wants to invest in something else.
How to find the best property managers:
- Look at their online reviews. The good and healthy companies will have good reviews because they are managing their relationships with tenants and owners well.
- Check if they’re growing. You can ask the property managers how they are growing their company. If they are only using SEO, PPC, content marketing, etc. to grow, they are not growing. The companies that are growing are the ones going to realtor networking events and meeting with people and creating relationships. Online marketing is great, but the relationship creating and networking is way better.
- Do not look for who the cheapest property manager is. They are cheap for a reason.
You have to know that investing is never going to be perfect. You have to know where your balance is–when you should start scaling your business and removing things from your plate. If you are not a full-time real estate investor, it will be so hard for you to be the landlord to multiple rentals. You’ll end up working two jobs and you will burn out.
Thanks for taking the time to check out the Cash Flow King Podcast! If you want to know more or have any questions, you can email me at firstname.lastname@example.org or hit me up on social media. You can also contact Jason at any of these links and let him know you heard him on Cash Flow King!
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