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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: AD who wrote (23393)	8/18/2004 1:17:51 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Good question, but his comments are no different than the questions/criticisms which often get bandied about when people discuss the real estate business. What they don't understand about the industry could fill a book, but that doesn't keep people from reading junk on the Internet about commissions/business practices/the MLS and complaining loudly (while still hiring Realtors whenever they need them!--bizarre.) Underneath every criticism, it seems, is a latent, somewhat socialistic belief that real estate service should be a regulated public utility, instead of a competitive industry in which companies and individual agents follow many different types of business plans and work strictly for their customers and clients, NOT the public at large.

To: AD who wrote (23393)	8/19/2004 11:21:01 PM
From: Doughboy	Read Replies (1) \| Respond to of 306849

RE Management fees. I negotiated it down to 12% because I put two properties under management with one company but the range of offers to manage was between 15-25% of rent income in the Washington DC area. As for Vail, CO the standard fee is 40-50% income for the management company. The general idea though is that the management company acts almost like hotel management, and operates a reservation line, onsite concierge etc.. What bothers me is that the managers are so used to operating for wealthy, devil-may-care owners, they've lost sight of actually trying to run things efficiently and profitably. I guess they assume one should be happy with the tax break and the rapid appreciation. But I actually want to get income from these investments, and haven't found managers with the same attitude. Doughboy