The Jon Sanchez Show

10/29-How to choose a great property manager

When I speak to clients about adding physical real estate to their portfolio, one of the most common objections I hear is….”I don’t want to get phone calls in the middle of night or I don’t want to be a rent collector.” The concerns are valid except for one thing….you don’t have to be that person. Instead, your property manager does. This afternoon on the Jon Sanchez Show at 3pm, we’ll discuss how to choose a great property manager.

Duration:: 35m
Broadcast on:: 29 Oct 2024
Audio Format:: other

At Sprouts Farmers Market, we're all about fresh, healthy, and delicious. That's why you'll find the season's best local and organic produce, handpicked, and waiting for you in the center of our store. Visit your neighborhood Sprouts Farmers Market today, where fresh produce is always in season. Good Tuesday afternoon to you. Welcome to the John Sanchez Show on News Talk 780K, which, as you can tell, I stumbled there, guys. I was spacing what day of the week it was. It's been one of those days. It's like, good Wednesday. No, the boys. So it's got to be Thursday or Tuesday. OK, I'm going to go Tuesday. [LAUGHTER] Oh, Corey and Javidrilli, how you doing, Pixie? I'm doing great. How are you doing? Doing all right. Doing all right. Getting a little beat up, getting a little beat up with some DR Horton earnings and rising bond yields. But, you know, it's all good. [LAUGHTER] Yeah, just that time of year. It is indeed. It is indeed. Halloween has struck early, I think, on Wall Street. Oh, the man who is also getting beaten up these days. How are you, my friend? [LAUGHTER] Oh, I'm doing fine. Oh, I'm doing fine. We had a little recovery today, but, yeah, no, I'm doing fine. It's like, you know, you busted seven percent. Well, the mortgage back security has had a little-- Hey, I'll take anything, right? It's like, I'm out there against Tyson. Just give me a, you know, let me have a breather, right? So I'll take anything I can get, but no, it is an amazing roller coaster. But yeah, and I don't see it getting-- I don't see this thing smoothing out for a while for you, you know. But I think about your options throughout the day. Yeah, likewise, likewise. I know. Yeah, we need to be in the same office together. Well, as Dwight and I are chatting about, for those of you that don't know, which I'm sure you probably don't, because you're hard at work. We will share this with you, but we just let the cat out of the bag. Thirty-year mortgage did crest above the seven percent mark today. And we'll, of course, go into the reasons why. And again, guys, we're going to kind of lead things off here in a moment. I want to talk about DR Horton's earnings today, which were just terrible earnings and bad guidance and so on and so forth. And, you know, you guys just nailed it. Kudos to you. Corey, especially you, you've been saying all along that these earnings numbers are going to be tough for these home builders because of the mortgage rate buy downs, which we spent a lot of time last Thursday talking about thanks to you, Dwight, also. And boy, did the company even on their earnings call that admitted about this, how it's costing them a lot of money for these buy downs. So we'll talk about this. And I want to get you guys's perspective on what these builders, what you're hearing out there being in the trenches each and every day, is both of you or what's going on with these guys and gals. Because, you know, what's interesting, guys, about the home builders, they are probably, in my opinion, one of the, one of the sectors that will move so closely with one another, right? If one company has a good day, they send, they tend to all have a good day and vice versa. And so, you know, you take the likes of a toll brothers today. It was down two and three quarters percent or 2.34 percent. You had Lenard down 2.29 percent. But the damage, of course, as we say, was DR Horton down 7.2 percent on a big earnings miss, that was a $13.06 loss to 167.32. So, again, I want to, right at the top here, I want to get down into what you guys are seeing and hearing going on with that group from, you know, being in the trenches. But let me tell you what we have lined up for everyone today. You know, being a financial advisor, we shock a lot of our clients many times when we are looking at asset allocation plans and going over their goals and their risk and so on and so forth. We shock our clients a lot of times when we say, "Look it," and I just had this conversation with the client today. We think maybe a portion of your assets should not be in the stock market or some of the other investments that we can offer, but this should be in real estate. And hence, you know, to be real blunt with all of you, that is why Corey and Dwight have been a part of this show since 2008 because we are one of the few financial advisory firms that realize how important real estate is. And, you know, a lot of advisors will never recommend real estate to their clients because you are taking assets away from them. They don't make any money on it. Well, that's not us. We don't care if we make money or not. On that standpoint, we are going to do the right thing for our clients. And again, that's why these two gentlemen have become my best friends in life. And they have been for many years because not only do they do a hell of a job, but it's the right thing to do for the clients. But when I talk to clients about adding physical real estate to their portfolio, I hear this over and over and over again. One of the most common objectives is I don't want to get the phone calls in the middle of the night or I don't want to be a rent collector, right? We hear this over and over and over again. And I love when people say that because that is what our topic this afternoon is going to be all about. These concerns are valid. There's no doubt about that. No one wants to get the leaky toilet phone call in the middle of the night, especially if you just have one rental. I mean, if you have a portfolio of them as we'll discuss, that's kind of the norm or if you own a small apartment complex or something, that's kind of the norm. But you don't have to be that person. You really don't. Even if you have one property, you don't have to be that person that gets that phone call in the middle of the night. You don't have to be that person that has to go out on a Sunday afternoon and knock on the door and say, "You know what? It's the 10th of the month, Mr. Tenet, and you didn't pay me. So here I am to collect. And oh, by the way, I've got to collect a late charge." And no one wants to be in that position. Otherwise, you'd be in the reposition business or the phone collection business, that type of thing. So instead, who does all that? If you want to get into the real estate, who does all that? That's called a property manager, right? And it's been years since we've really gone into details of what a property manager really does. So the guys who put together a good list for us. We're going to go through what you look for when you hire a property manager. We have some great ones in town. There's some bad ones like any business. But we're going to talk about what you need to look for when you're interviewing them. And again, they're not cheap. Again, they're an expense of operating your real estate business. But Corey, real quickly before I get into the stock market side, you have sworn by property managers as long as I've known you. And I imagine that does not change over time in orders it changed and the recommendations you're given to clients that come to you and say, "Hey, I'm ready to become a landlord." Correct. It depends on the overall plan. I've managed my own properties for many, many years. And then you get to a point where your time is better spent doing something else, and your money's better spent giving it to an expert to take care of things, you know, depending on the number. And I think horror landlord stories are just like, you know, comments on TripAdvisor, right? Like, you only see the bad ones, but 90% of the experience is good, if that makes sense. So, by and large, most of my clients over the years have had a great experience as being landlords, whether they've managed themselves or not. You always hear a horror story here and there, and they are out there for sure. But the vast experience is generally a good one, otherwise nobody would do it, right? That's so popular because it's not easy, but it's not as bad as some of it makes it sound. And especially if you are not local and you don't want to manage that way, you need somebody here to take care of your properties because you're moving, and you have to have a manager because you need to deal with the day-to-day stuff as small as it may be. So, always a good idea to look into, for sure. Absolutely. And Dwight, in the properties you've owned over the years, you've had some that you've managed, if I remember correctly, and some that you've had property managers own. Yeah, you know, when I was out of the area, I had a place in Sacramento, I had to get a property manager. But you brought back PTSD for me because I did this for my dad. I was that guy for about 18 months. You know, you know, I'll share one real because I had a guy move out. And for a year, they were throwing their trash bags under the sub-four. So, yeah, imagine that fun. Yeah. So, I've seen it all. But, you know, Corey has talked about this over the years. And, you know, I mean, if you really want to be a powerful, effective landlord and own property and build and grow like you always are trying to get people to look at the next look, it's going to take a team and it's going to take a property manager for the most part because, you know, I'd like to say guys like me to come along and do that job. I don't like it. I won't do it. You know, but, you know, I think the ones he chooses, but Corey does have some pretty good successful stories with his. Absolutely. I've thought about that. And again, as I've said before, I've really only one time have I ever had a tenant in anything that I've owned real estate wise. But I know, again, I've said, sure, this was all of you many times. I know I would be a terrible landlord if I decided to, you know, put my efforts and my money towards it because I'm such a softie, right? All it would take is that person to say, you know what, this happened, that happened. And I'd let him slide and that's not what you need to do. So I know that. And then also my earlier years is all of you know, you know, I spent many years with GMAC doing that collection on the on the phone and in person and repossessing cars. I've had guns pulled on me by cops and I, you know, repossessed cars. And I've had every name called at me as I, you know, trying to collect a car from people and so on and so forth. So I don't like it. I've been there, done that at least on the car side. And I know it'd be even worse on the real estate side when you're talking, you know, roof over somebody's head head and especially if they've got children and so on and so forth. So, you know, count me in as the guy that would be the one that would be signing up for a property manager, guys, count me in. So I just he's got to look at your personality and see, you know, what fits in with you. So, okay, let me get down to the stock market side and then I want to get to this topic because there's a lot of things we need to discuss on that. So, once again, you know, Dwight and I were talking about rates a moment ago and it was every day it's becoming the deciding factor in the market. You know, the market going to go up if rates are down as the market going to go down if rates go up. And today was one of those days where even though we finished unchanged on the tenure at 4.27, it wasn't that way. Earlier in the day we were up six basis points on the tenure treasury and it was as volatile as the stock market was today. And normally, as Dwight knows, it is normally not that way in the bond market. But this is the new world that we find ourselves in, right? Ever since the Fed cut rates, it's just become a new world. And then, of course, the bond traders are concerned about a lot of different things. And we're seeing significant amount of volatility in the bond market. That's creating a significant amount of volatility in the stock market and so on and so forth. And that's kind of where we find ourselves at this point. We had the S&P case show or home price index come in for the month of August. Again, old data up 5.22%, not bad there. Consumer confidence number looked really good. The market spiked a little bit but couldn't hold on that one. Reading came in at 108.7 for October from 99.2 in the month of September. So consumer is still very optimistic about things. But again, the bond market driving the bus and just moving rates all over the place, frustrating to wait, frustrating any stock market investor, etc. So when it was all said and done, it was again a tough day on the Dow side of things. But I've got a little bit of good news for you that hopefully I'll check the features at the break here. Hopefully we'll turn things around a little bit. And that was Google, right? This is a very busy week. It's the busiest week from an earnings standpoint of the entire quarter. So lots of numbers coming in. But one of the first major tech heavyweights reported after the close today and that company, of course, was Google. Numbers were outstanding. $2.12 a share. Expectation was $1.85. Revenue came in at 88.27 billion. Estimates, 86.3 billion. YouTube revenue. Boy, they got to this be high five in themselves. This is one of the best buys they ever did. YouTube advertising revenue, $8.92 billion. Google Cloud revenue, 11.5 billion. Traffic acquisition cost, 13.72 billion overall. Alphabet's revenue grew 15% year over year, which is stronger than the same quarter last year. Cloud revenue up nearly 35%. I mean, I could just go on and on. It was a great move or a great quarter and we're seeing a great move in the after hours. Normal session, Google finished up $2.96, 1.78% to 169.68. Right now in the after hours, it's up $9.40. Just moved again, $9.40, 5.54% increased to 179.08. So good numbers out of Google will hit a few more commodity things when we come back and get ready for our topic. How to choose a great property manager. I don't know how we choose a great traffic reporter. There's nobody better. Kristen Snow, how are you? Welcome back to the John Sanchez Show on his Doc 780K OH with Dwight Millard of Synergy Wind Lending Courage of Edge Realty. All right, here's how we finished up. Again, we struggled on the Dow side of things today. We had, again, I don't know if it's because of the DR Horton Week earnings or the rise of interest rates, whatever it was. Home Depot was our drag on the Dow all day long, finished down $7.80, 1.95% loss to 395.04. Only had a handful that were positive. So then result was a negative triple digit loss day on the Dow, finished down 155.36% to 42,233. But the good news, the features are getting very early. They just open, starting to move up about 52 on the Dow features. NASDAQ's are higher by 45. SMPs up 15. Again, all it takes is one good stock like a Google to turn things around. So hopefully that will be our catalyst. NASDAQ, it just did not pay attention to rising yields or any of the problems the Dow side of it had, finished up 146.78% to a record close again of 18,712 and the S&P up 9 points to close at 5,832. Quiet on oil down 3/10 of a percent, 67/21 a barrel. Great day for your gold bugs up $25.20, 2007/81/10. As we mentioned, unchanged on the 10 year at a yield close of 4.27%. Mr. Mallard, take it away, sir. Tell us how we did on the 30 year mortgage. Well, according mortgage news daily, we had a three basis point increase to 7.03. So there's that 7% mark you were talking about earlier. So here we go. I mean, and John, I can certainly see the mental fatigue on these buyers thinking that just what a little over a month ago, there was going to be this wonderful opportunity on the horizon to watch rates come down a little bit, maybe start shopping and just kind of blew it out of the water. People are really frustrated. The ones that I talked to that, I mean, there are people that have been sitting there, trying to maybe even position themselves for a refinance because they got a seven and a half or it would have been all over the board. And everybody was anticipating and again, I'm just talking about the, like you said, the mental out there that are going to work every day, not in the trenches like the three of us, but they're just thinking, okay, now's a good time to reach out. And Corey and I have a mutual good friend ready to go. And here we are, rates are up. And how do you explain that to people, right? I mean, how do you just explain it that doesn't sound like you're, you're crazy, you know, and so it just, yeah, it's, it's, it's wearing on the consumer. That's for sure. Absolutely. Well, it's affecting the entire industry. And I want to start this segment off before we again, when we get back from the break, get into our topic, how to choose a great property manager. But I want to get into the discussion guys in regards to what the publicly traded home builders, the big boys are doing right now what they're facing at this point. So as we said at the beginning of the show, DR Horton was a, just an absolute disaster today. It started off in the pre market session when the company released their earnings, they finished down $13.06, 7.2% loss to 167.32. And I want to read you guys a very short story, a short article that is on Bloomberg. I mean, their earnings numbers are all over the internet, as you would imagine. But this is a really good consolidating. And then I want to pick it apart and get your guys's opinion on this. So here's what Bloomberg said. The shares, which I should have mentioned this, the shares today with this decline. This was the worst one day decline dating back to March of 2020. Okay, so that's how severe the loss was in DR Horton today. Again, we saw the other builders decline as I mentioned. Now here's what Bloomberg said in this article. While the 30 year mortgage rates slipped throughout the quarter, they have been climbing more recently. Home prices have also continued to rise for the stretching would be buyers. DR Horton's results suggest buyers may be holding off, expecting lower rates next year. The upcoming presidential election is adding another layer of uncertainty. Now this is from a comment from the chief executive of DR Horton, Paul Romanowski, chief executive officer, he said the following quote, "We are seeing our buyers sit on the sidelines, sit on the fence, a little less motivated today than they were previously in the prior quarters." There's just a lot of noise in the market. The rate volatility we've seen combined with the election news that's out there, I just think we're seeing people take a pause, but it certainly is a stretch today. Some house centers may be waiting for financing costs to fall below a certain point, but stability and rates, because this is his quote, "Stability and rates is most helpful for us in generating buyer demand." And three months through September, buyers signed contracts for 19,035 homes, up 5% from a year earlier, DR Horton reported, analysts were looking for 19,994, so we're talking less than 1,000 differential there. The company said it expects to close 90 to 92,000 homes in fiscal 2025, which was also lower than the consensus of many Wall Street estimates. So guys, I want to go back to what I really think is the most important sentence that the CEO said, and that is, I think we're just seeing people take a pause. Corey, take it from there. Is that true? Yeah, it's a fatigue, right? And I agree with quite a hundred percent that these buyers have been on a rollercoaster or at least the last year, maybe two years of rates going up, prices not coming down, rates settling in, prices not coming down, rates coming down, prices not coming down. And then you wait two seconds and the rates are right back up again. So there is no relief there. And I can completely see how some of these buyers, whether they're new home buyers or people trying to refinance maybe and think about selling and going to a new place, will just get worn out on it. And there may be a little bit of seasonality going into the holidays, get past the election. But we'll see how this election goes, because to me, both of these candidates are going to start spending a ton of money. If they have their way, if Congress wants to spend that money, and that is not going to be good for the bond market if that comes true. So is this going to say that careful what you wish for, because you may 7% may be a good rate looking back on things. I'm not wishing that, but I wouldn't surprise me. Yeah, Corey, there's an excellent point. Like I said, you took the words out of my mouth. I was going to say the exact same thing. Both candidates going to be spending a lot of money bring inflation, in my opinion, back into the picture. But I want to put a little aster Corey on what you said and what I'm agreeing with you on. And that little asterisk is this. Remember, folks, so many of the programs in pick your list, right? Anything that's going to cost money, it's going to require, in most cases, 95% of them, 95% of the cases, it's going to require congressional approval. So Trump can say everything he wants to do and give and give away and so on so forth. Harris can say the exact same thing. The bottom line is nothing is going to get done if Congress does not approve it. Again, for about 95% of what they want to do. So if, again, this is why I keep emphasizing the makeup of Congress is much more important in this election than it is the actual, you know, who's going to be our president, right? From an economic standpoint, the makeup of Congress is the most important thing, because that's where, again, if it's all to the right and Trump gets in, wow, watch out. Things are going to just skyrocket, you know, and I mean in a good sense, but also, you know, deficit's going to expand. Definitely rates are going to go up, so on, so forth. Harris gets in, same thing. I think things will, you know, I just go down, you get my point, makeup of Congress, extremely important. Dwight, real quickly, you agree with what Corey is saying? I know you do, but that, again, this consumer is just, you know, really ready to take, or they are taking a pause at this point. Yeah, a couple quick comments. I deal with the R Horton, you know, on several cases. And, you know, it's very difficult. The borrowers are becoming more and more challenging. They just give up, right? Hey, I need you to pay off your visa. I'm out, you know, so keep in mind, John, this is the number one home builder that did 88,000 homes last year closing. And on pace to do 92, Lenard's right behind them. But, I mean, you've got the biggest, largest home builder in this country saying, hey, you know, it's not looking as good as we thought. And so where does that leave the, you know, the 200, 300, you know, 1000 unit home builder? I mean, I mean, in trouble, right, I got to believe, you know, because it's a tough one. The bars are lending is getting tougher for these borrowers. It is. And, you know, guys, we've said this before. We haven't done the show a while. Maybe we need to next week or so. We're not even talking about the commercial. Lenard's out there, the commercial borrowers, that we're so much counting on rates coming down as refies, you know, are going to be get, or loans are going to come do here a lot next year. And if these rates are not down, you know, we can see that that that that catalyst began as far as defaults worse than they've already started in the commercial space. So yeah, higher rates, not good for anybody at this point, other than maybe the bond trader. So thanks for the comments, guys. That was very enlightening. Appreciate that. All right. How do you choose a great landlord? We're going to, or property manager, we're going to discuss that when we come back. Let's turn over to Greg Neff. He's got news traffic on weather. Hey, great. Welcome back to the John Sanchez show on his talk, 780 KOH, with the core edge of agility, the white Millard of synergy one lending. Hey, don't forget, if you missed any of our shows, pick us up at your favorite podcasting distributor. We have hundreds upon hundreds of shows just waiting for your listening pleasure. Speaking of pleasure, I love the pleasure I get when I go down to my friends at S&W Attractor, get to sit and drive and sometimes buy those great coyote tractors. They've got an incredible selection and they're ready to make some deals for you as you head into the end of the year, 0% financing for 84 months on select models. Standing the crew, they can make it all happen. Just go see them at 480 East Nylane and Carson City online at s&wtractor.com and their phone numbers, 882-1225, 882-1225. Once again, we finished down 155 on the Dow, a record close on the NASDAQ up 146 and the S&P higher by 9. How do we choose a great property manager? This is the alluding question that many people have when we start talking to them about, hey, you know, we'd like to see you add some real estate to your portfolio. Now, Corey, before we get started, I want to kind of preface this by as crazy as this sounds. A lot of people don't know what a property manager does. So please start off with a very simplistic explanation. What does a property manager do? They are going to step in between you and your tenant. So to kind of set the groundwork, property managers in the state know how to have to be licensed. Most of the time, the brokers are the real estate sales people, but the license you get from the division real estate, just like my brokers license or any other realtor. So they have to go through testing. They have to go through annual reports for their trust accounts, all these different things. So there is a regulating body out there that oversees people through property management. But in essence, what you're going to do is turn over, not complete control, but a lot of control of your property to this property management company. And they, in turn, are going to advertise it for rent. They're going to do the background checks. You're going to do all the things that you would have to do. They're going to place the tenant, and then they're going to take all those phone calls that everybody's trying to avoid if there's that need to be done. They're going to collect the rent, and they're going to send you the rent minus any expenses. It's all based on separate agreement, however you want to work it. But they'll send it to you monthly every three months, annually, however you want them to do that. And they're also going to take care of evictions if it happens, or late payments, or court proceedings if it gets to that point. All those things that people don't want to do is what the property management does, property manager does. And the typical cost. It varies. The normal cost on average would be about 10% of the gross rent. So let's say your house is renting for a thousand bucks, your property managers in place are doing all stuff. They're going to collect a thousand bucks. And if you don't have any other debts, you're going to send you 900 and keep 100 for themselves. So it's time to spend that average. You can negotiate. It's all negotiable. Okay, very good. And I think Corey, sorry, I was going to ask Corey, do they pass along with that flat fee or whatever that is? Do they pass along the other additional costs like running a credit reporter, having to track down? That's not embedded in that. That's over and above, correct? Most of the time, it's over and above. So a lot of times, you're either going to pre-fund their accounts, right? So you're going to have a good property manager there and have an account set up for your property. You're going to give them a certain amount of money to pre-fund it because certain things have to be obtained for or whatnot. Or the first month's rent that comes in, a bigger majority of that will stay in that account. Four little handyman things, toilets, this, that, or the other. A lot of times now, just like what you got, I think, correct me if I'm wrong, but four background checks and credit checks and all that stuff, the applicant, the tenant, is going to pay for that. Yes, that's my understanding. And Corey, the other thing we should add in there too, is they're going to act as the bookkeeper, meaning they're going to give you a detailed report, what monthly quarterly, annually of, here's what came in, here's what went out, etc. They'll set it up however you want. Now, that was always one of my punches. Whoever you choose, you want to make sure they have a good what I call back office, because typically the property manager, the tenant, and day-to-day is not the person that is going to send out the financials. So you want to make sure they have a good back office, because yes, you can get them monthly, you can come quarterly, you can get them annually, however you set them up. And what we do with our stuff is it comes in, clients over it, everything works right. Most landlords in their brain say, "Okay, I'm expecting a check for X." And if the check is different, that's when you can go down to that account statement and say, "Oh, I see why it's different or I don't agree with it." But most importantly, the one at the end of the year, typically, if not quarterly, is the one that's going to go to your accountant, because he or she needs to see all that stuff and make sense of it on your tax returns. Do you give them a threshold of what they can spend? In other words, you say, "All right, any expense, less than $500, just go ahead and pay for it. You don't need to get my approval. Is that normal?" Most contracts are having a number in there. And the number, again, is I don't want to say negotiable, but you can talk to them about it. It could be $250. If you're one of those people- Is that the property? Yeah, yeah. It depends on the property, and it depends on how smart the landlord thinks he or she is. If you say, "Hey, anything over $100, let me know," because I'm smarter than everybody, and I might be able to do some different things. What we do with ours is, I think, we're set at $1,000. If it doesn't reach that threshold, I really don't want to deal with it. I just take care of it on my billing. Right. Besides the non-fun stuff, like collecting rents and, like you said, evictions and so on and so forth, your property manager is also advertising agency. This should be one of our main points that we're looking at when we're trying to decide who we're going to work with. We need to understand what their marketing strategy is, because they are responsible for giving me a tenant. Correct. With the housing market the way it is, where it's been a complete seller's market, if you price it right, things typically sell pretty quick, it should have been the same in the rental market. There's been a shortage of rentals, as you can imagine. These property managers don't need to take out billboards and full-page ads to get things rented. They just need to have a rent that is realistic for the market, a nice main property, and a lot of times they'll just put up a sign. A lot of them will have websites, just the normal things, but they don't even go above and beyond. You don't see them advertised much, now that I say that. You don't really need to. A lot of times you can go to, because of, I don't want to call it AI because it's been going on forever, but I'm sure AI is made an easier. You can go to Google, you can go to some of these other ones and say Reno Rentals, and it may take you to a couple specific websites, but most of all it's going to show you rentals in the area from everybody's company because all the data has been aggregated by the source. As long as there's a somewhat of a presence, people will find it. Okay, makes perfect sense. All right, when we come back, Corey, I want to get into the tenant screening process. How do we know and ask what their process is when we discuss how to choose a great property manager? Let's wrap it up to Kristin Snow in the right now, Traffic Center. Hi, Kristin. Welcome back to the John Sancho Show on News Talk 780KOH. It's Mr. Adger Funderber, please. 673-6700. Mr. Mallard. 240-2022. Thank you, boys. Do appreciate it. All right, we're talking about how to choose a great property manager. Again, this is one of the big roadblocks people have when they start thinking about becoming a landlord. They don't want those phone calls. So this is what a property manager does among many, many other things. Corey, we talked about, again, how some of these companies advertise and so on so forth because they're responsible for getting people under the roof. Now, what is involved and what do you like to see in a property manager from a screening process in regards to their tenants? Well, and let me back up a little bit too. With your property, you can talk to the property manager and say, "Hey, I don't want any pets," or "I have a three-bedroom house, so I don't want, you know, 25 people living there." He can kind of set some parameters as long as they're legal to go along with that screening process. And then what'll happen is they'll do their advertising, they'll get applications, and it'll be as a tenant. You got to be prepared in just the landlord knows it's a full application of job history, current job, past jobs, bank account information, or time. It's not as in-depth as Dwight's application, but it's getting pretty damn close. And then it'll also pull a credit report. And based on all that stuff, the property manager will make a decision. So that's one of the things that sometimes landlords are, they get a little more intuitive than they need to be and say, "No, they want to decide." And that's, when you hire a professional, let the professional do their job, and they will decide. And as much as I hate to say it, John, they will go off of, if all the tenants are the same, they'll say, "First come, first serve." If one sticks out more than the other because it fits what the landlord wants, it's all legal stuff, and they're stronger financially, that's probably the thing going. So what, you know, I'm glad you brought this up, Corey, in regards to the background side, because I was talking to this young kid the other day, this friend of ours, and he's trying to get into, like, I'll call it an upper-end type of an apartment. I mean, you know, pretty good chunk of money each month, almost equivalent to what a mortgage payment is. And he said that they're conducting a background check on him. Now, I mean, it's been 40 plus years since I was ever in an apartment. I never remember a background check, obviously a credit check and so on and so forth. What's, what's this background check, Corey, or Dwight? Dwight would have to, I mean, there are some other background checks they can check, just like attorneys do, but maybe Dwight knows more about what they're getting. John, I think it's just what Corey was alluding to. It's a, it's a very thorough credit check. You know, they're going to, they're going to look at your, you know, your references, they're going to call them. I don't think it's an actual background, criminal background check. I would think, I mean, that's getting way out there. We don't even do that to loan applicants, right? Yeah, I think it, I think it's just more, but it, to Corey's point, it is very, very burdensome on that new tenant because it is getting to a point where it looks just like the money. It is. Yeah, this poor kids have been waiting like four days and, and yes, check and income verifications. I mean, and they probably charge them for the application. Yeah, is there, yeah, they did. Is there a FICO score they look for? Like, like in lending? I would assume one comes back on the report. I don't know if it's the same type of FICO as Dwight looks for, but there's some kind of score that comes back. Well, I know. Is there John, they're typically, John, they're typically getting an experience. They're getting a what a soft poll. And I would say that they probably have a minimum threshold, I would think. Okay. Okay. Perfect. Corey, wrap us up. What's, what's your last piece of advice on hiring a property manager? If it's, don't let the horror stories dissuade you from getting into real estate. And if you're not one of the hands on people that want to be involved, hire the property managers, interview a couple of different ones, get some references. There's some bad ones out there, like you mentioned, but there's, there's more good ones than bad ones. So nine times out of 10, I got to find somebody with experience. And, but I've always said hire a property management company. I wouldn't hire a property management individual. Individual. Great job, fellows. We'll do it again tomorrow on the John Sanchez show. God bless. Have a good evening. This program was sponsored by Sanchez Wealth Management. 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