Why PMs lose money in year one đź’¸
In this short conversational excerpt, Peter Lohmann and a co‑speaker compare two real‑estate revenue models. They first discuss how realtor cold‑calling can lead to a very fast payback: a listing agreement secured within two weeks can generate a full profit once the home sells about 60 days later. They then contrast this with property‑management fees, which are much smaller relative to the effort required. Lohmann notes that, unless leasing fees are charged, the payback period stretches over multiple years. He estimates that property managers typically lose money in the first year of managing a property, but begin to turn a profit in years two through five. The dialogue highlights the importance of leasing fees and the differing cash‑flow timelines between sales commissions and ongoing management fees.
