3 Key System

Summary

The video explains a 'three key system' for managing properties. Each property has three keys: one for the owner, one for the property manager, and a third key kept in limbo for use by contractors, buyers, or renters. The third key can be placed in a lockbox or handed over depending on the situation, like selling, renting, or repairing the property. This system ensures flexibility and control over property access, and it's a standard practice for every property managed.

Takeaways

• 😀 The three-key system is used for managing properties, with each property having three keys in total.
• 😀 One key is held by the property owner for their own access.
• 😀 Another key is given to the property manager for management purposes.
• 😀 The third key is used by whoever needs access to the property at any given time, such as contractors or tenants.
• 😀 In case of a wholesaler, the third key might be placed in a lockbox for secure access.
• 😀 When selling the property, the third key can be handed to the buyer if it's a cash sale.
• 😀 For owner-financed sales, the owner may keep the third key to ensure control in case the buyer backs out.
• 😀 Renters will receive the third key when the property is rented out to them.
• 😀 The three-key system applies to every property consistently, providing clear and secure access management.
• 😀 The goal of the three-key system is to maintain flexibility in property access while ensuring security and accountability for all parties involved.

Q & A

What is the purpose of the three key system mentioned in the script?

The purpose of the three key system is to manage access to properties by ensuring that three keys are in circulation—one for the property owner, one for the property manager, and one for whoever is using the property at the time (e.g., tenants, contractors, or buyers).

Who holds the first key in the system?

The first key is held by the property owner.

Who holds the second key in the system?

The second key is held by the property manager.

What happens to the third key in the system?

The third key is kept in a lockbox or is given to whoever is using the property at that time, such as a tenant, contractor, or buyer.

What scenarios require the third key to be placed in a lockbox?

The third key is placed in a lockbox when a contractor is working on the property, or when the property is being wholesaled and access is needed without direct management.

How is the third key managed when the property is sold?

When the property is sold, the third key can be given to the buyer, but only if they are paying in cash. If it’s owner-financed, the keys are kept by the owner until the sale is fully completed.

What happens when the property is rented out?

When the property is rented out, the third key is given to the tenant.

How does the owner handle the third key if the buyer is financing the purchase?

If the buyer is financing the property, the owner keeps the third key in case the buyer backs out of the deal.

Why is it important to have the third key system in place?

The third key system ensures that there is always access to the property for essential purposes, such as maintenance, selling, or renting, while also protecting the interests of the owner and property manager.

Is the three key system applied to all properties?

Yes, the three key system is applied to every property the owner and manager handle.