The 5 Biggest Mistakes That Keep You From Growing Your Rental Investment Portfolio
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We’re here today with Benton Cotter from RentVest. Benton is an owner of RentVest are one of the owners and helped grow the property management company from 1 to 450 to 4000 doors managing single family homes. So we’re going from 450 to 4000 in three years. And as a result we’re actually the fastest growing property management company in America.
The fastest. That’s pretty nice. He has a little better space about with referential properties we’ve seen a lot of investors come through and do very very well with their portfolios.
And so we thought we’d shared some of the things they have done and that made them successful with their growing their portfolios and some things that maybe you can take for yourself and growing yours.
If you’re one of those people that wants to grow and maybe you have a couple of properties and want to get over that hurdle that barrier to five properties and maybe have you seen that with the five properties. Benton have you seen people struggle to get over that point and why do you think it is?
Yeah definitely. It seems like there’s just that cap happens. I think it’s that a lot of factors go into it but I feel like it’s becomes almost overwhelming. There’s just a lot to do a lot to keep doing and to keep being successful at it.
It’s hard to hit five good rental investments in a row. To be honest to know and do research in different markets and so that’s one big things actually make sure identify the right property and to be able to actually find the right property to be able to be successful to make it to five and go beyond that is key and that’s sets a lot of work to find properties.
I think when you have five year to do on all those daily managements of those five properties then you have on top that find more properties is just time consuming especially if you’re doing another job you have your day job and this is more of a side gig. It’s pretty difficult just that the day to day. But it gets It gets annoying it’s hard. There’s a lot of problems and issues and having the phone ring at 9 o’clock.
Now you have five tenants ringing you at 9:00 instead of one that just keeps growing and growing. So there’s lots of factors but definitely time is a big one.
Well a lot of problems you talked about. We’re not trying to just promote property management obviously that’s what we do but we’re trying to actually give you the tips to get to that point where you can build a portfolio and really build that retirement and you know pay for your daughter’s wedding and stuff like that using the money you make from rentals.
Obviously we believe in property management. We started, Benton and Jacob and these other guys and started out with RentVest, you know they built it in a way that would help them with their properties that they invested in and that they would want somebody to help them handle those calls and handle the property having confidence. So they obviously built a company that is built around helping investors and accomplishes that without the late night calls and stuff like that. Right?
So if you have somebody that’s there that’s doing all these things for you like let’s say you know something that’s already a client of RentVest they’ve already had two successful properties they’ve had great renters. They’ve been there for three years and paid every month and you I’ve taken care of the property and they’ve built up the confidence. Why do you think they would it was a problem that would keep them from getting another rental investment?
I think comfortability in the market like we’re out of Phoenix is a lot of our corporate office a lot of it or half or a third of our doors are there and so it’s not the best ideal place to buy. Right now there’s other areas that are more lucrative but I feel like when it’s outside of their realm or their local neighborhood they get a little unsure of it.
Also I think it’s sort of it’s no financing getting your finances in order and each time you buy investment property it’s 20 percent down and so that to get that in order and then performance we’re being successful. Hopefully you’ve been successful with RentVest and so I hope they understand “hey I can. This is a good thing for me to prepare for my retirement and get that cash flow coming.” I think that’s also just comfortability of it. I feel like just the knowledge that to be educated about and that you understand he can go other places or there’s even opportunities to buy it here in Phoenix , just not downtown there’s other areas to buy and it’s hard to get that information to them.
Actually one actually to them so they can actually digest it properly is key for us as well we send all the e-mails we want that’s actually for them to digest that information and understand oh there is good opportunity here or in Memphis or wherever Atlanta there is there’s good opportunities getting educated and feel comfortable with that I think.
Yeah I think if you don’t have like it’s sort of saying you know you’re talking about you know it’s really common that most people that invest in rentals invest in it around that area they live like within a few miles even most clients, that’s 60 percent crazy like that 60-70 percent. But you know we are here in Arizona when the market took off in like 2003 it was like crazy. And we did have investors coming from other states and you know we were in real estate and I diversified a lot of measures that. Made a ton of money.
They had no clue about the Arizona market. But they went for with confidence and and they they found the right people. And we can help you do that too.
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