Listing ID: 64168
Company provides leasing and management of residential homes, townhomes and condos along with Brokerage for investors selling and purchasing investment properties. The company focuses on high quality homes in desirable areas that attract tenants with the highest financial qualifications.
They currently manage 110+ homes and have great retention consistently staying occupied 97% or higher based on the higher demand generated from their residential tenants coupled with the higher quality of the homes they manage.
Not many single family property management firms in the Birmingham area that cater to higher end homes.
Continue to grow the business by adding more homes for leasing and property management. A great opportunity for an outside property management firm adding to their portfolio while improving their cash flow.
Currently shared office space and not having to pay any rental expenses. Can be run out of office/home
- Asking Price: $1,150,000
- Cash Flow: $265,000
- Gross Revenue: $325,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:2
- Furniture, Fixtures and Equipment:N/A
The business was established in 2010, making the business 12 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell businesses. However, the real reason and the one they tell you might be 2 totally different things. As an example, they might state "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competition, recent reduction in incomes, or a range of various other factors. This is why it is extremely essential that you not rely totally on a vendor's word, however instead, make use of the vendor's answer along with your general due diligence. This will repaint an extra reasonable picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money in order to cover things like supplies, payroll, accounts payable, etc. Remember that in some cases this can imply that profit margins are too small. Numerous organisations fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new consumers? Many times, companies have repeat customers, which create the core of their daily earnings. Particular variables such as brand-new competition growing up around the location, roadway building and construction, and also staff turnover can impact repeat consumers and negatively affect future earnings. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the chance to construct a returning client base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the local mean household earnings impact future earnings potential?