Kidnapped by Russian Mobsters and How to Manage 13,000 Rental Units with Andrew Propst | BP 265

TL;DR

Andrew Propst shares insights on managing 13,000 rental units and surviving a kidnapping.

Transcript

this is the bigger pockets podcast show 265 you're listening to bigger pockets radio simplifying real estate for investors large and small if you're here looking to learn about real estate investing without all the Heights you're in the right place stay tuned and be sure to join the millions of others who have benefited from bigger pockets calm you... Read More

Key Insights

• Andrew Propst was kidnapped by Russian mobsters during a mission trip and later released after a week, a story that became a movie.
• He started his real estate journey by managing properties, eventually growing to manage over 13,000 units across multiple states.
• Andrew emphasizes the importance of having a good property manager and suggests looking for those with certifications and a strong online presence.
• He advises that a property's value can often be increased by improving management rather than just physical upgrades.
• Andrew suggests building to rent as a viable strategy in the current market, noting the potential for high returns.
• He highlights the importance of understanding local landlord-tenant laws when investing in different markets.
• Andrew recommends automating rent collection to reduce delinquencies and improve cash flow management.
• He stresses the need for consistency in managing tenants, such as adhering strictly to lease terms to avoid legal issues.

Questions & Answers

Q: How did Andrew Propst get into real estate after his kidnapping experience?

After his mission trip and subsequent kidnapping, Andrew Propst was inspired by his sister's experience managing properties, which allowed her to live rent-free. He pursued a career in property management, starting as an onsite manager and eventually growing to manage over 13,000 units.

Q: What advice does Andrew give for finding a good property manager?

Andrew advises investors to look for property managers with certifications like those from NARPM or IREM, a strong online presence, and transparency about their services and fees. He emphasizes the importance of choosing a manager who understands investment goals and treats property management as a business.

Q: How can investors increase the value of their rental properties?

Andrew suggests that investors focus on improving management practices rather than just physical upgrades. He highlights the importance of understanding market demographics and setting rents accordingly, as well as maintaining consistent policies for tenant management.

Q: What is Andrew's view on building to rent in the current market?

Andrew sees building to rent as a lucrative strategy, especially in markets where construction costs are lower than the potential rental income. He recommends investors consider this approach to achieve high returns, particularly in areas with strong rental demand.

Q: Why does Andrew stress understanding landlord-tenant laws?

Understanding local landlord-tenant laws is crucial for investors to avoid legal issues and manage properties effectively. Andrew notes that these laws can vary significantly between markets, impacting eviction processes and tenant management practices.

Q: What are Andrew's tips for automating rent collection?

Andrew recommends using technology to automate rent collection, such as online payments and automatic drafts. This approach reduces delinquencies and simplifies accounting, allowing property managers to focus on adding value to properties rather than acting as collection agencies.

Q: How does Andrew handle tenants with service animals?

Andrew follows fair housing laws by treating all tenants equally, regardless of service animals. He advises property managers to adhere to lease terms and avoid making exceptions, which could lead to potential legal issues.

Q: What is Andrew's approach to tenant eviction?

Andrew emphasizes the importance of following lease agreements and state laws when evicting tenants. He advises property managers to start the eviction process as soon as legally allowed if rent is not paid, while maintaining professionalism and consistency in communication.

Summary & Key Takeaways

• Andrew Propst shares his incredible story of being kidnapped by Russian mobsters, which later turned into a movie. He also discusses his journey into real estate, starting with managing properties and growing to oversee 13,000 units.

• The podcast emphasizes the importance of having a good property manager, suggesting that investors look for certified professionals with a strong online presence. Andrew also shares insights on increasing property value through better management.

• Andrew discusses the strategy of building to rent as a profitable venture and stresses the importance of understanding local landlord-tenant laws. He also highlights the benefits of automating rent collection and maintaining consistent management practices.