ABOUT YOUR CASH FLOW MORE THAN YOU DO .
Building a real estate portfolio that is going to take care of you long term requires time and attention. And since we’re not talking about spending time collecting rent or taking maintenance calls, the time we spend is truly being the CEO and managing your team. When your primary team member is your property manager (PM), that is where your focus will be. This isn’t terribly complicated, however it DOES require discipline and consistency to make sure you keep YOUR eyes on YOUR prize. Every month you should receive a report from your property manager for each property you own. At a bare minimum, you should be reviewing every line item, taking note of ANYTHING that catches your eye. For example, if you see a large line item
expense for maintenance, you need to call the PM to request the GL (general ledger) detail so you can identify if there are any repairs that look out of line. Even if nothing looks unusual, it’s a good idea to ask for more information on one or two items each month to make sure (1) your PM is keeping proper documentation, (2) that the expense actually does belong to your property
and (3) that your PM knows you’re paying attention.
One of the things that scares a lot of people when getting started in real estate investing is the stories about property managers ripping them off. I’ve been there. Lessons Learned What I’ve learned over the past twenty years is that when I’m paying close attention to the expenses
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