Why does a property manager need a real estate license? – Liviu
Ken: My cynical answer is that it’s because the city wants your money. However, while I don’t think it’s necessary in many situations, I can’t say that it’s overkill in every situation. The main reason for this requirement is because you’re handling tenants’ money. As the property manager, you’ll be depositing rents and security deposits and you’ll also be responsible for eventually refunding those deposits. I think the real estate license is for your clients’ peace of mind. When you get a real estate license, you’re bound by certain protocols and ethical guidelines. I’m not saying that I agree with this necessarily, but that’s the thinking behind it.
What are your best resources for someone who’s trying to get into sales but is pretty shy and introverted? – Samira
Ken: One of my favorite books in general is Never Split the Difference by Chris Voss. He was an FBI hostage negotiator for many years, and has taught people how to negotiate with confidence. I know that sounds like a strange recommendation for improving your ability to sell confidently, but the principles in the book can be applied to a lot of different situations, including the most extreme ones. Also, this is something that you can get better at, but it will take time. I’d recommend that you get in the habit of doing one thing that makes you uncomfortable every day. If you’re an introvert, that one thing can be starting a conversation with a stranger. It can be anyone – someone in line at a store, a cashier, your neighbor, literally anyone. Over time, you’ll strengthen the muscle of being able to communicate with ease. It won’t be easy, but it will kick start a powerful transformation. A lot of shyness is based on the assumption that people will judge you or think something unkind about you. In my experience, people welcome conversations and want to interact with someone who will listen to them. Also, once you’ve finished reading Never Split the Difference, keep looking for books or even classes that will help you negotiate and feel at ease around people. One thing my wife and I did last year was take standup comedy classes. It was totally uncomfortable but we had fun and it improved our comfort level with our YouTube videos.
What’s the minimum amount of ROI you would accept on an investment for it to still be worthwhile? – Charlie
Ken: For me, cash on cash means that I’m making a five percent return right out of the gate. Typically, the ROI would grow over time because of rising rents and fixed debt. But that’s just something in the back of my mind, not something I’m counting on. Whatever you do, don’t buy a rental property with negative cashflow expecting that something will happen to course correct.