Business for Sale, Would I Buy It? | Property Management?

Alright so in today’s version of “Would I Buy This Business”, we’ve got an established property management business in a prime location. So this is one I personally tried starting a property management business. I had my real estate license years ago. I had been doing business brokering. I was doing business brokering and I thought, you know, with my real estate license, what else can I do? Property management seems like a good business. You have recurring revenue once you sign somebody up. You just collect the rent, you take your cut, and you pass the rest on to the owner. If somebody calls for maintenance issues, you just send you know the plumber or the electrician or whatever else it is out. Seemed easy right, I thought. I hated it. I hated it with a passion. Trying to rent properties was a nightmare. You have to drive across town in traffic, always at the worst time, to show a property to some potential renters who half the time wouldn’t show up or would show up and complain or not be interested or whatever. Probably partly the time that I was doing it wasn’t the best time. Rentals weren’t in high demand, and it was hard to always find somebody. But I just found myself spending so much time in the car driving around talking to people who wanna call evenings and weekends. Not a good fit for me. I did not like the property management business. But if you can be in a position where you’re not the person who has to go on-site and do the rentals and do the maintenance and do all that stuff. And you got a staff that can handle that, as a business there’s still a lot to like. It has recurring revenue which makes it nice and stable. And there can be a pretty healthy profit margin. And so you know, if you get into it and do it right, not from a start-up from the ground up like I was thinking about, it could be a solid business. 

So, this one asking price of 1.279 million, revenue of 1.347 million, and cash flow of 345,000. So about 25% profit margin which is not bad for a service business. You potentially could make that even better. It comes with $170,000 of fixtures furniture fixtures and equipment, which for a service business, I’m not sure what that is. Maybe they’ve got a few trucks, maybe they do some of their own service. It says it was started in 2012, which you know that’s a good 12-year history. So that’s pretty solid and see what the description says. Profitable Colorado HOA property management business. Highest level of personal service technology integration. Great reputation. Services 21 HOAs. They do – okay – association management, property management, snow management, maybe that’s where the equipment comes in. We have 14 employees, 10 full-time, two part-time, and two seasonal. Current management is in place and potentially stays for the right buyer. 

So yeah Frisco Colorado. If you’re interested in that area and property management is something you wanna get into, this looks like a reasonable business. Again I think profit margins could be higher. If they’re already doing 21 HOAs, depending on how big Frisco is, there may be – they may have to expand into some other areas. Vacation property rental management or just you know individual homeowner property management to grow. But yeah it’s something worth potentially checking out. The price doesn’t seem crazy high for what it is and I also wanna know a little bit more about what all those fixtures and equipment are that come with it, $170,000. What exactly are you including there for this kind of business? But yeah, could be good for the right person willing to relocate and who doesn’t hate property management like I do.

Here’s a little about this series. CapForge’s owner and founder gives us a little behind-the-scenes on what a good or bad business would be. CapForge helps tons of clients either buy or sell business and Matt was a business broker before starting CapForge. Let’s look at some of these businesses for sale and see if Matt would be interested in buying them.