What's it worth?
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What's it worth? (by Jim [CO]) Jul 31, 2020 12:01 PM
       What's it worth? (by WMH [NC]) Jul 31, 2020 12:23 PM
       What's it worth? (by WMH [NC]) Jul 31, 2020 12:27 PM
       What's it worth? (by Roy [AL]) Jul 31, 2020 12:31 PM
       What's it worth? (by Robert J [CA]) Jul 31, 2020 3:11 PM
       What's it worth? (by 6x6 [TN]) Aug 1, 2020 6:46 PM

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What's it worth? (by Jim [CO]) Posted on: Jul 31, 2020 12:01 PM

I am a 70 year old property manager. I am ready to retire. How do I determine what my business is worth? --70.158.xxx.xx

What's it worth? (by WMH [NC]) Posted on: Jul 31, 2020 12:23 PM

Wow. I *just* received an email about this: how to evaluate your property management business. Let me see if I can find it! --50.82.xxx.xxx

What's it worth? (by WMH [NC]) Posted on: Jul 31, 2020 12:27 PM


Steve Murray, the president and co-founder of REAL Trends, the nationís leading trends and research organization, was one of the speakers at this year's Pulling Back The Curtain property management conference. His company does 15 - 20 valuations/month so he went over some industry trends and walked us through how to valuations are determined.

The 3 main factors that drive your value higher are:

1.Profitability (pre-tax cash flow)

2.Consistency (in your growth, personnel, and records)

3.Portfolio Churn (the lengths of your contracts).

Your financial valuation is determined by your EBITDA (Earnings Before Interest, Taxes, Depreciation, & Amortization) multiplied by 2 - 5. Determining your multiplier depends on a multitude of other factors.

You can read full details in our article here."

latchel . com/blog/how-to-value-a-property-management-company --50.82.xxx.xxx

What's it worth? (by Roy [AL]) Posted on: Jul 31, 2020 12:31 PM

At the very min, you could say your business is worth 3 times your Net Income. I would need more information to give any other answer. What are your business assets? What is it that someone else would want to buy? --68.63.xxx.xxx

What's it worth? (by Robert J [CA]) Posted on: Jul 31, 2020 3:11 PM

I had two friends sell their Property Management Business. One turned 65 and the other turned 80.

The 65 year old provided the last 5 years worth of records showing:

1. Number of clients

2. Number of properties managed

3. Gross and Net Income -- the bottom line

4. A list of handymen/contractors.

5. Hours spent working..

This manager was terrific. She'd get a call from a tenant and then made phone calls to get things done! Only worked around 20 hours per week managing 72 homes and a few dozen apartments.

The negotiated amount was based on two factors. The monthly fee received per property and extra bonus for re-renting out vacant rentals.

Her goal was to get 2 times her annual profit, but those offers came with a 5 year payment plan. Instead she accepted 1-1/2 times her annual income, paid half up front and the balance over the next 6 months...

She had no firm contract from her clients so when the business was sold, no one had to keep on working with the management company. --47.155.xx.xxx

What's it worth? (by 6x6 [TN]) Posted on: Aug 1, 2020 6:46 PM


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