Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Horror Stories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 2 hours ago on . Most recent reply

User Stats

84
Posts
23
Votes
Rodney Lorenzo
23
Votes |
84
Posts

Avoid Revolution Properties LLC at all costs

Rodney Lorenzo
Posted

When I acquired a 6 unit property in Hartford, CT in 2022, the neighborhood appeared as just working class. Soon after, the neighborhood went from class C to class F. I stuck with the same PM, owned by Tom Kopchick, because they knew the building and neighborhood quite well. Unfortunately, things went South really fast. I thought, let me evict the non-paying tenants and replace them with paying ones. Well this was like pulling teeth. Units were not flipped because the PM blamed it on the bad neighborhood and said that govt programs were the way to go if I wanted a consistent rent roll. He never told me that it would take several months to get funds from these entities. I ended up with 4 empty units and 2 paying tenants, then only 1 paying tenant. I still paid the mortgage on time, but was a struggle at times borrowing money from friends and family just to do so. A veteran was finally put in one of the units (the one paying tenant), however, the PM failed to tell him to open his own electricity acct and after 6 months, ended up with over $2000 of charges under my LLC. When I went by the building one day, they refused to let me into another vacant unit because they said once a govt program takes over while they find a tenant, I as the owner cannot have access to it. This unit ended up costing my LLC over $1800 in electricity charges when it was supposed to be vacant. The electricity shot up to over 3000 kw over the winter prompting me to think they had a grow house in there or a squatter the PM was collecting rent from himself.

In a neighborhood like this, you need a very competent PM. Instead, I ended up with the worst and most incompetent in the state, if not the whole country. They never got back to me on anything. It was, "yeah I'll take care of it" and I'd never hear from them again. Some of the problems were not taken care of at all. Homeless people were shacking up in the basement and breaking windows on the ground level trying to get inside one of the units. The PM had a manager who stuck her "friend" in one of the units prior to my acquisition and because they had a fall out, she stopped paying rent so I got no revenue from that unit for 7 months. The PM was horrible at trying to evict her and she finally abandoned the place, costing me over $9000 in lost revenue. When I attempted to replace them with another PM, Tom begged me to keep him on. Like an idiot and a firm believer that everybody deserves a second chance, I proceeded to continue on with them. Huge mistake. Things got much worse. He deliberately used a plow to destroy my driveway when there was snow, prompting my insurance company to come after me. In the two estimates I got to repave the driveway which were around $7000, Tom wanted 15K for it. It seemed to me that things were broken so they can make money off of the repairs. A PM could easily get away with this. There was a leak in the skylight above the inside hallway and they implied that I needed to redo the entire roof because of that one leak. That would've cost me over 20K. 

In trying to get another PM to come on board which none would touch with a 10 foot pole and my hemorrhaging money left and right, I decided to put it on the market. Tom the PM got upset because he wanted to sell it for me, but I told him that if he was inept as a PM, what made him think he would be great at selling my building? All reviews of this PM on the internet are all horrible. Goes to show you that before you contemplate hiring a PM, ALWAYS check their reviews first. Most lie through their teeth. Additionally, he never charged me a "percentage" of the rent roll as stated in the agreement. It was always a flat fee of over $600 whether I had 4 tenants or 1. With the appreciation, I didn't lose as much money as I thought, but had I held onto it, I would've gone bankrupt and had the building go into foreclosure, all because of their incompetence. Again, I tried my best to find another PM, but there were no takers. It's PMs like these that ruin the reputation for the others. I truly believe that they can steal from under you and get away with it. Even the REIA in CT was of no help. An entity that supposedly "helps" investors, but said nothing on how to avoid bad PMs. Besides them, I contacted the AG of CT, the mayor and an attorney to see about suing them. I got no help whatsoever. The state literally has enablers that allow rogue PMs to get away with a lot and I'm sure this is like this across the country. The Dept of Consumer Protection was a joke and was of no help either. Everyone assumes landlords have bottomless pockets so they don't really care about them. I sought advice on Biggerpockets, only to get berated and spoken condescendingly by other investors. It's as if I was supposed to have a crystal ball and why didn't I do this or that. Were they successful on their FIRST INVESTMENT? Crickets. It was more like "look at me, everything I touch turns to gold". Yeah right. Now, I'm focused on fixing and flipping. An endeavor I look forward to, as I refuse to get discouraged in my real estate journey.

Most Popular Reply

User Stats

43,020
Posts
63,513
Votes
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
63,513
Votes |
43,020
Posts
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Quote from @Rodney Lorenzo:
Quote from @Michael Doherty:

@Rodney Lorenzo I am really sorry to hear this. I hear their name come up all the time (not in a good way). I do decent amount of brokerage sales in Hartford and it can be really rough in certain areas. I wouldn't let this deter you from future investments and I hope you were able to sell the 6 family. 
Multi Family can be a great investment, I would recommend paying more for a multi in a better neighborhood and managing it yourself. If you don't want to self manage, interview 3 different managers beforehand and get current client reviews. If you need other management recommendations let me know. 

Hi Michael. Yes I did sell it and what a load off of my shoulders. I felt I needed to take a risk in my first investment and I screwed up royally. But this experience taught me a whole lot, which I don't think I would've learned elsewhere. In some ways, I'm kind of glad I was taught a lesson. I focused too much on the property and less on the neighborhood. Renovated building in a Class C neighborhood which eventually turned into a Class F, instead of a property in need of work in a great neighborhood. I know that not all property managers are like this, but I will stay away from bad neighborhoods, as well as, bad PMs from now on and ONLY fix and flip in good ones. Hope you're doing well!


first rule of RE investing is Location second rule Location third rule Location.. thats the issue.
Also this is a very cautionary tale in chasing yield.. In todays market and since rates popped up using the same desires for positive cash flow with minimum down required has moved folks into the danger zone so return is directly related to risk.. 
business profile image
JLH Capital Partners

Loading replies...