Episode 11 - The Book on Managing Rental Properties

Question 1

Book Title: The Book on Managing Rental Properties

Answer 1

Heather and Brandon Turner are a married powerhouse real estate investor couple. They began their real estate investing journey early at the age of twenty-one, learning through trial and error how to become successful landlords and real estate investors in Western Washington State. Over time, they steadily bought, sold, and flipped their way into creating a vast real estate empire across the US.

Question 2

About the Authors: Heather & Brandon Turner

Answer 2

Brandon and Heather started investing in single-family and small multifamily properties and now focus on apartment complexes and mobile home communities. They manage over 700 rental units and have completed dozens of rehabs.

Question 3

About the Authors: Heather & Brandon Turner

Answer 3

Brandon Turner is the founder of Open Door Capital and a prominent figure in real estate investing. He is a best-selling real estate author, the former host of the BiggerPockets podcast, and the former Vice President of Bigger Pockets–a leading real estate investor networking platform.

Question 4

About the Authors: Heather & Brandon Turner

Answer 4

Brandon, Heather, and their daughter are adventurers and split their time between their home in Hawaii and various global destinations.

Question 5

Book Summary:

Answer 5

“The Book on Managing Rental Properties” is a comprehensive guide that provides valuable insights and practical advice for landlords and property managers. The book covers various aspects of managing rental properties, including finding and screening tenants, setting rent prices, handling maintenance and repairs, and dealing with difficult situations like evictions.

Question 6

Book Summary:

Answer 6

The Turners draw on their own experiences as successful real estate investors and landlords to offer practical tips and strategies for maximizing profits and minimizing headaches in the rental property business.

Question 7

Book Summary:

Answer 7

The book emphasizes the importance of effective communication with tenants, proper financial management, and proactive property maintenance to ensure long-term success.

Question 8

Book Summary:

Answer 8

Throughout the book, the authors share real-life stories, case studies, and practical examples to illustrate key concepts and offer actionable advice.

Question 9

Book Summary:

Answer 9

If you are interested in becoming a landlord or property manager, this is the first book you should read.

Question 10

Danny Gonzalez is the founder and CEO of Freedom Ventures Property Management–a leading property management company in the southeastern US.

Answer 10

He has over ten years of experience in real estate as an agent, investor, broker, and property manager.

Question 11

He founded Freedom Ventures Property Management in 2019 with a dream of helping others achieve financial freedom through real estate investing.

Answer 11

Currently owns 30 doors, has 5 flips going on actively.

Question 12

Preferred method of investing= BRRRRs

Answer 12

Danny and his wife Amy and two children, Daxton and Joanna, live in Miami, FL. Outside of work, he enjoys spending time with his family, weight-lifting, reading, and deepening his faith with other Christians.

Question 13

Tell me about your background–where you grew up, your family, and how you got into real estate.

Answer 13

Born in Miami, first generation American. I was the first to leave Miami, moved to Orlando where I went to college. Graduated, then taught middle school science for a few years. Eventually, I was introduced to a top real estate agent in Orlando that recruited me to join his team. Did that for multiple years, then moved to Birmingham, started investing, met Maura/Z, took down the portfolio which was the start of FVPM, and the rest is history.

Question 14

Tell me a little bit about where you are on your personal real estate investing journey?

Answer 14

-30 long term rental holds
-Have flipped 50+ doors
-Have another 5 going on actively

Question 15

Tell me about Freedom Ventures Property Management

Answer 15

-350 units under management
-Have a team of 10 that handle the day to day ops.
-We’re on our way to become the best
PM company in Birmingham.
-I run it remotely from Miami

Question 16

What did you like about the book?

Answer 16

-When I started FVPM, I had ZERO experience in managing property. This book became my daily resource.
-The part on “everything you do is training tenants, either with good behavior or bad behavior” was crucial. Now having 4+ years of experience, this is even more true. If you want good behavior, you set the expectation and then hold them to that standard. When tenants don’t do what they’re supposed to, you have to hold their feet to the fire.

Question 17

What did you dislike about the book?

Answer 17

-A lot of PM is state specific so even though this book lays out generally what it looks like to manage tenants, there is still a lot unsaid. For example, in the eviction portion, it said an eviction can be completed in a month. Right now in Bham, we’re seeing 6,8, 12 month waits for set outs. Unless you know the intricacies of your market, you won’t be able to make the best decisions to increase profitability.
-The book spells out how to manage tenants, but it does not spell out how to operate a Property Management business. Entirely two different things.

Question 18

What are some important lessons from this book?

Answer 18

-The importance of screening tenants and how to do it
Reiterating qualification standards multiple times
Good recommended questions
-“The 13 Principles of being an Incredible Landlord”
If you follow these, your properties will perform well

Question 19

Who should read this book?

Answer 19

Anyone who is looking to manage their property. If you’re self managing, definitely study this book, but even if you have a PM company, handle your portfolio, it’s still beneficial to know the ins and outs of what managing a property entails. It’ll help you have empathy with your PM company, as well as hold them accountable.

Question 20

How would you rate this book on a scale of 1-10?

Answer 20

8.5

Question 21

Are there any other good books or resources about property management that you would recommend?

Answer 21

The Courage to be Disliked

Question 22

What are some of the big lessons you have learned from running a property management company for 5+ years?

Answer 22

-Where to start……
-Get around people that are also building a PM company
-Hire great people, VA’s are a great option at first

Question 23

What are some misconceptions that people have about property management?

Answer 23

-That it’s easy and that there should never be any hiccups.
-It’s a difficult industry with a lot of moving pieces, but if you can systemize it and build a great team around you, there are tons of opportunities

Question 24

What would you advise people to look for when selecting a property management company?

Answer 24

Experience.
I’d want them to talk to me about their collection process/renewal process/etc. The devil is in the details

Question 25

What can owners do to have a good relationship with their property managers?

Answer 25

Trust their guidance.

Question 26

What would you tell someone who says that they are interested in starting a property management company?

Answer 26

Be ready for a beautiful mix of anger, frustration, excitement, and hopefulness.

Question 27

Where can people learn more about you and Freedom Ventures Property Management?

Answer 27

-FreedomVenturesPM.com
-Instagram, dannyg.realestate

Question 27

There’s never a dull moment in property management…do you have any recent funny stories as a property manager?

Answer 27

We recently received a letter from an attorney requesting that we pay $7k for a high water bill, even though we repaired the leak within48 hours and even gave her a credit on her rent for the higher than normal usage for the 2 days.