In Contract-HOA Management Book of Business For Sale

Alameda County, CA

Seller Financing Available
In Contract-HOA Management Book of Business For Sale
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Asking Price: $160,000

Cash Flow: N/A

Gross Revenue: $175,000

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Established: 2015

In Contract-HOA Management Book of Business For Sale

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Business Description

Perfect Home Based One-Man Business for Aspiring Entrepreneur

Established Property Management Company in Alameda County is seeking to sell its HOA division. It's currently run by one PM and a Virtual Assistant. The PM also helps on the rental side, so one person could probably manage it by themselves.
The portfolio consists of 22 small HOAs for a total of 290 units. We've specialized in smaller HOAs that can't get the level of customer service that they need from larger companies. We've built ourselves as a largely virtual company. Most HOAs are on a 1/3 meeting calendar, where we attend one meeting in person per year and three via video call (Join.Me or Google Hangouts). There are a few that we don't attend at all, we just prep the agenda and get the notes afterward. We don't do site walks and we don't do additional meetings unless they pay for them ($150 per meeting).
This could be a good acquisition for an existing company or if a single person wants to build a one-person business, this would be a good living.
The base management fees are approximately $12,000/Mo but could be raised and there are ancillary fees for things like postage, printing, extra meetings, 1099s, consulting, SOS filings, etc. We are protective of our clients, so we want someone who would take care of them, not someone looking to make a quick buck and deliver poor service. We've kept things fairly small and uniform, we've fired 6 HOAs in the last 12 months because their expectations were unrealistic, so these are fairly simple HOAs to manage. 86% of them pay their dues online, the rest mail their checks to an HOA lockbox. Again, we could leave that in place for the rest of the year until the annual packets go out so that there would not be any disruption mid-year. Good customer service is as important as industry knowledge.

Detailed Information

Location:
Alameda County, CA
Employees:
1
Facilities:
Service business. Everything is digital except for the HOA ballots that we're required to keep on file. You'd need a postage meter, printer, computer, phone. Could easily be run from home. We also wouldn't have a problem consulting on an ongoing basis to make sure that no institutional knowledge is lost as many tasks are annual.
Competition:
The HOA market is certainly crowded, but we've carved out a niche among smaller HOAs (50 units and under) that can't get the level of service they need from larger companies. We have a steady stream of referrals and haven't had to pay for advertising. If someone continued our high standard of service, we believe the business would continue to grow. We'd also be happy to set up an ongoing referral fee for new leads as we get 2-3 a month from existing clients and contacts.
Growth & Expansion:
Fees are rarely raised, so many of these HOAs could be raised. We also haven't been charging much for extra meetings or printing, so there's more money to be made there. My advice would be: stay selective about who you take on. You could also make money if you or a friend/family member is a handyman.
Financing:
I would prefer all cash or SBA, but primary concern is finding a quality buyer.
Support & Training:
Negotiable. We're happy to arrange a smooth transition. We like a lot of these HOAs and we want them taken care of. We wouldn't be opposed to sharing our existing software for six months and letting a new owner learn our systems before taking over.
Reason for Selling:
Funding other acquisition. Want to focus on rentals.
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Business Listed By:
Rob Buffington

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