Again, my name is Robert Rico, California Realty Training.
Today, I have Matt Williams here.
Matt Williams: Hello.
Robert Rico: Excellent property manager.
We're going to ask him a few questions regarding property management.
We've discussed different things with these blogs before.
We've talked about residential sale.
We've talked about investment.
But, we have yet to hit on the topic, property management and that one we do want to get
across to you, to make sure you understand how this works.
Course, we've got the man here himself to give us some great tips and how this works.
And maybe, Matt can give you some tips to help you out with your career, if you're interested
in getting into a property management.
Alright Matt, so let's ask you a couple questions.
When did you get involved with property management in general?
Matt Williams: I started doing property management over seven years ago.
Robert Rico: Got it.
Now, why did you get involved in property management?
I just mentioned to the audience out here.
There's real estate residential sales.
There's investment sales, all kinds of stuff.
And, you got involved in property management.
What's the deal?
Matt Williams: So, I've done commercial mortgage banking.
So, three million and up commercial mortgages.
Robert Rico: Wow.
Matt Williams: In office buildings, shopping centers.
I've done brokerage.
Sold multi-family properties.
Robert Rico: As far as sales, right?
Matt Williams: As far as sales.
So there was mortgage banking.
So, that would be finance.
Robert Rico: Got it.
Matt Williams: Then I did apartment brokage.
Then, I did a little development with some skilled nursing.
And, the thing was mortgage banking and brokerage are all pop businesses.
You have to have your cash flow in line ... Robert Rico: What does that mean, pop businesses?
Matt Williams: You pop businesses.
Basically, it's a pipeline business that you make a pop every time there's not residual
cash flow.
Robert Rico: Okay.
Matt Williams: So, property management, I know how much I'm making every month.
Robert Rico: Got it.
Matt Williams: And, I know exactly how to budget for my overhead.
I don't have to close three, four, five deals just to get that done.
Instead, I know I've got so many buildings.
This is how much I'm coming in and I can manage it.
So, the trade off is with brokerage or commercial mortgage banking or finance.
Is that, you don't know how many deals you're gonna get in a year.
Robert Rico: Got it.
Matt Williams: Whereas, with this.
You make a lot less.
You don't get the big pops.
But, you know how much you're making.
But, it's a constant, constant ... Robert Rico: Oh, I get it.
So, pop meaning closing a deal and you don't know when you're gonna pop.
Matt Williams: That's right.
Robert Rico: Got it.
Matt Williams: It's a pipeline business.
Robert Rico: In your field and I guess, what you're saying is.
It's consistent.
Matt Williams: It's consistent cash flow.
But, it's a lot of work.
Robert Rico: Got it.
Now, explain to us what kind of work is involved.
Now that you mentioned that, what kind of work you talking?
Matt Williams: Okay.
So, just to give you an idea.
You've got owners who have expectations of how they want their properties to be run.
You have tenants that have an expectation of what their living environment can be.
You've got government agencies that have their own expectations and requirements.
And, you've gotta find a way to work all three.
On top of that, you've gotta work with vendors.
So, you might have an issue, an owner may have an issue or, a tenant may have an issue.
Sometimes we have to work with both the owner, the tenant and the vendor.
And we have to constantly be problem solving.
Now, the thing about property management is, when was the last time you called your property
manager and told them they did a good job?
Robert Rico: Yeah, right.
Hardly ever.
Matt Williams: That doesn't happen.
Robert Rico: It doesn't happen.
Matt Williams: So, the only time you get calls is when something goes wrong.
Robert Rico: So, you hate that phone when it rings, I take it.
Matt Williams: I don't hate it, cause I love my job.
Robert Rico: But I mean as far as, you know what's coming.
Matt Williams: I know what's coming.
I know that it's either, there's going to be an issue and because, it's someone's home
they're gonna be ... They can be upset.
They can be excited.
Most people are fair and reasonable and can work through a problem.
Some people have unrealistic expectations.
Some people are very, very flexible to work with.
Our goal is to manage that process.
Robert Rico: Now you said, our goal.
I take it you don't do this yourself then?
Matt Williams: Oh no, no.
We've got quite a few people working with us.
Robert Rico: So, you have a nice team?
Matt Williams: Oh, we've got a great team.
We've got bookkeepers, we've got field supervisors.
Robert Rico: Oh, this is actually, not just a team of two to three people like a real
estate team.
This is an office?
Matt Williams: This is an office.
We manage quite a few buildings.
And, I couldn't count everybody that works with us on both my hands.
Robert Rico: Wow.
Matt Williams: Yeah.
Robert Rico: Excellent.
Hey man, I wanted to ask you something else.
How important is it to have a property manager?
Now, some people ... I, myself.
I owned a few investment properties before.
Why am I going to pay property manager?
I could collect rent myself and, I know how to fix a thing or two.
And it kind of, backfired on me.
Why is it important to have a property manager?
Matt Williams: So, the first deal for anybody's fun.
You buy your first house.
You get your first renter.
You call your first maintenance company.
You solve your first problem.
You think you're flying high, right?
Robert Rico: I remember those days.
Yeah, yeah.
Matt Williams: Everybody loves it cause when it's a hobby and it's something new and the
glitter and gold is all cool, you love it.
There's an old country song, not everything that glitters is gold, right?
So, the truth is that, it's more than just collecting the rents and paying the bills.
A lot of it is, property managements actually, people management.
So, a lot of times ... Robert Rico: People management, I like that.
Okay.
So, you're not really ... I mean, you are managing properties.
But, you're managing people.
I dig that.
Okay.
Matt Williams: Yeah.
If it was just processes and procedures and it was as easy as tech.
You send an email, you send a text and boom everything ... Like our modern day cell phones.
Anybody can do it.
You just run the process right.
But, processes are efficient.
People aren't.
Robert Rico: Got it.
Matt Williams: So our job is to really manage the people elements.
So, how do we deal with a tenants got an issue on their property.
How do we deal with that issue in a way that allows the tenant to be happy.
They still may be frustrated because they aren't gonna be happy no matter what you do
but, that's okay.
We understand that too.
But, we want to do it in a professional manner or, we're doing it in a way that's responsive
quick.
And, manage the owner's expectations and well.
When you said, "Boy, that blew up fast."
Well, I'm sure you can tell a story and I don't want to misrepresent any of those stories
for this blog.
But, sometimes there are real issues that occur due to misunderstanding.
So, a misunderstanding could be a tenant's rent sends the check to us.
Mails the check but, the mail looses it.
It happens.
We call the tenant say we never got it.
Tenant said, I sent it.
Well, the tenant suddenly assumes we're saying their lying.
They aren't lying.
Robert Rico: Right.
Matt Williams: They sent it.
It didn't get to us.
We're both telling the truth.
Where's the gap?
So, in every situation our philosophy is that there's a piece of information missing.
So, right there we don't create a conflict we say.
"It's not that I don't believe you.
We just never got it."
Robert Rico: It sounds like communication is huge here, there.
Matt Williams: Oh, you need communication.
Robert Rico: So, aside from the list of items that you do I'm guessing, repairs, collect
rents, and I'm sure there's others.
Matt Williams: Oh, collect rents.
Monthly reports.
Bank reconciliations.
Dealing with the city and the county on inspections.
Dealing with all these different issues.
The biggest piece that moves it is, customer service.
Robert Rico: Got it.
Matt Williams: And without customer service, you can't run it.
Now, the truth is nobody wants to take a call at 10PM.
Robert Rico: That was my next question, when was the last time you got a call at one in
the morning?
Matt Williams: Oh, we had one the other day and I had to let the tenant ... If we have,
if it's a clogged sink or actually, if it's a clogged toilet and it's a one bedroom apartment.
Well, we've gotta fix it.
But, if it's a two bedroom apartment and there's one clogged toilet.
That can wait till the morning.
So, sometimes it's about working through some of these issues and it's an apartment.
It's apartment living.
You can't change that.
But the truth is, at the end of the day, our goal is to deal with the building professionally
because, we do this full-time.
Robert Rico: Got it.
Matt Williams: And a lot of times, owners might take things personal that shouldn't
be taken personal.
And a lot of times, tenants just need to know that we're actually listening and we care.
Robert Rico: You're almost in a position of being a meditator, kinda sorta.
Matt Williams: Every day.
Robert Rico: Really?
Matt Williams: Every day.
Robert Rico: That must be the most challenging part.
Matt Williams: That's actually, the best part.
Robert Rico: The best?
Matt Williams: The best part.
That's what I love about my job.
Robert Rico: Yeah.
And, that happens sometimes.
Matt Williams: Yeah.
Robert Rico: The toughest ... The most challenging is usually, the most exciting.
Yeah.
Matt Williams: Yeah.
And the truth is, anybody who works with us will discover that something's are out of
our control.
Something's we just can't get you someone there in 20 minutes for this issue.
We can get someone there in 24-hours but, you are going to die in 20 minutes.
Robert Rico: Right.
Matt Williams: But sometimes, it's just knowing we got it.
We wanna take care of it for you.
Robert Rico: Seven years you've been doing this, huh?
Matt Williams: Seven years.
Robert Rico: Sounds like you've been doing it forever.
Awesome, awesome.
Can you let the audience know what your name, your phone number, how they can contact you?
If you guys have any questions for Matt, please go ahead and leave them in the comment section
below.
If you need anybody to rent your properties.
If you guys are investors out there and you want some help with these kinds of, issues
as far as, renting properties.
Give Matt a call.
You just heard what he said.
He sounds fantastic.
One more question.
Matt Williams: Yes sir?
Robert Rico: What advice can you give somebody whose getting their license?
Let's assume they just go it.
Cause I've had a few students of mine in the past, who say.
"You know what?
I think I want to do property management."
And, I never understood why.
But, now I get it.
I see the challenges, but I also see the consistency as to you know what's coming in as far as
pay is concerned.
Matt Williams: Yeah.
Robert Rico: It's consistent.
What would be your personal recommendation Matt, as to telling somebody who says.
"You know what?
I think I wanna select property management for my career."
Matt Williams: My advice is, do brokerage.
Make the money and buy your own buildings and manage for yourself.
Robert Rico: Now, real quick.
Do brokerage.
What do you mean, do brokerage?
Matt Williams: I would say, get your pop income.
Get those big paychecks.
Robert Rico: Got it.
So, do residential sales?
Matt Williams: Do residential sales.
Robert Rico: Got it.
Matt Williams: Multi-family sales.
I mean, they're licensed they can sell office buildings, shopping centers, industrial centers.
They can sell apartments and, they can sell homes.
Robert Rico: Right.
Matt Williams: They can even sell hotels.
Robert Rico: Got it.
Matt Williams: They aren't limited to residential.
With their license they can finance.
You don't have to do just residential.
Robert Rico: Let's talk about the typical ...
Matt Williams: Got it.
Robert Rico: They're just coming in.
Probably the residential sales.
Matt Williams: Got it.
Yeah.
Robert Rico: So, you're saying go out and pop, which means close a couple of deals.
Matt Williams: Yup.
Robert Rico: And then what?
Matt Williams: And then, manage for yourself.
Bring in the buildings.
You have more control, you have more say.
A majority of my business is working with the owners.
And so, it takes a lot of long nights in order to make the money.
To do it, you have to have some money saved.
Or, you have to be willing to sleep with your cellphone underneath your pillow for the first
couple years.
So, it is a ... It takes a long time.
It takes a real investment and time commitment and savings to actually, start and do it.
So, I recommend you do it.
I recommend you give it a shot.
But, the truth is, you get a building.
You make $200, $300 a month on a building.
Maybe, a duplex or a single family home.
Maybe $150.
How many of those do you have to do before you actually making a living?
Robert Rico: How many properties do you currently manage?
Matt Williams: We manage over 90 plus.
Robert Rico: Wow.
Matt Williams: Yeah.
So, it takes time to get there.
So, my advice is you can do it.
But, if you're gonna do it, it's going to take three years.
Robert Rico: One more question, then I'll let you go.
Three characteristics that somebody must have to be a property manager.
Just three characteristics.
Matt Williams: You gotta have the patience of Job.
Robert Rico: Patience.
Matt Williams: Not just any patience.
Robert Rico: Oh.
Matt Williams: You have to have the patience of Job.
You have to have a positive attitude- Robert Rico: Positive attitude.
Matt Williams: -that no matter how much people criticize you.
You're able to still be kind, patient, and gracious.
Robert Rico: So, it's gonna be, patience.
Positive attitude.
Matt Williams: And then, the final thing is a whole lot of problem solving skills.
Robert Rico: Boom!
The three P's.
So, let's go again.
Matt Williams: Patience.
Robert Rico: Patience.
Positive attitude.
Matt Williams: Attitude.
Robert Rico: Problem solving skills.
The Three P's.
Look at that.
Matt Williams: That's right.
The Three P's.
Robert Rico: I just gifted something you can use.
Matt Williams: Thank you, thank you, thank you.
Robert Rico: There you go.
Hey Matt, thanks for being here with us.
Matt Williams: Thank you, thank you, thank you.
Robert Rico: And again, if you have any questions for us California Realty Training, wants to
make your career as positive and successful as possible by bringing guests like Matt who
have been doing this for seven years now.
Sounds like he's the best of the best.
What's your phone number and email address?
Matt Williams: Matt Williams.
You can reach us at 310-987-7978.
That's, 310-987-7978.
You can send an email to matt@williamsrea.com.
Robert Rico: Boom!
Beautiful.
Thanks for coming in this week to our video blog.