All Forum Posts by: Andy Brown

Seems to be. It would be great if Wabtec can actually stay in Erie for the long hall. Though sometimes I wonder if it would be better in the long term if the last of the big manufacturers would just die and let the city redefine itself with a more stable and diverse economy (is this blasphemous?) That plant has been such a rollercoaster for the city's morale.

@Dennis M. Never. Disappoints.

@Daniel Lynch, I would add two things:

1) I secretly hope the gf is an active BP member and this is your passive-aggressive way of giving her a hint;

2) if you do charge her rent, do it all via email and never address it in person (super passive aggressive) and if she does try bring it up, just refer to "the landlord" in the third person and commiserate with her about what a greedy stickler he is.

Please report back on how this goes. ; )

@Nathan Killebrew

"Clean your room." -Jordan Peterson

"Do something!" -William Booth

@Denise George

We should probably summon the Erie sub-30k king for this one: @Dennis M.

@Matt Millard

Remember, you make your money going into the deal. You could have easily gotten a lover/partner/best friend, for well under 10k of debt (though admittedly this is market specific). I'm currently working on the "BP marriage calculator" (included with Pro membership) which factors in total debt and net worth and then calculates the ROI/viability on the marriage. ; )

But obviously finding a great life partner is invaluable. And glad to see youre getting ahead on the pay-down. Best of luck!

@Steve Hall

@Steve Hall

When I was in grad school there was a really pretty girl that got a lot of attention. I asked a buddy about her once and the response was "She's cute but she has 200k in student loan debt. Probably best to steer clear." It was solid advice.

Pretty sure "marrying for love" will only tolerate 100k in non REI debt. Unwritten rule.

On a serious note, if a partner-to-be has major consumer debt, it's definitely worth exploring what bad habits might be associated with it. Very difficult to build wealth when one partner can't control spending habits.

@Brandon Penn

I second @Gregory Hiban . Would love to hear the specifics of the deal composition if able to share and what kind of return youre anticipating.

@Jim K. @James Wise

Regarding the podcasts, I also wonder how much they promote the exception and not the rule. But to be fair, I'd say 1/3 of the podcasts start with someone going completely broke--often through their first rodeo in real estate. This week's podcast as the most fresh example. But I think we usually ignore that part because it isn't sexy.

As much as I love the BP positivity, I think this thread touches on a bigger issue that doesn't get enough attention: real estate investing isn't for everyone and THAT'S OKAY. It isn't necessarily a failure if you dabble and move on or don't get started. For many personalities this stuff just isn't a good fit and could actually be far more destructive than if they just never touched it. There's a lot of work, risk, and stress that comes with REI. No shame in recognizing a bad fit and moving on.

Lol. @Dennis M. never disappoints.

If this house is as bad as you say and been on the market for years, he'll let it go for around 40k is my guess. That being said, it'll take a lot of momentum to get it up to speed and a lot of moxy to deal with the neighborhood and clientele. Unless this is your skillset like our boy @Dennis M., I'd let this one go. Maybe see if this guy has other units that he's looking to offload?

Hey BP! Need some advice on best way to break contract with PM and what to expect.

Final Straw:

Retained PM about 6 months ago for some rentals. Things have gotten progressively worse with the final straw being that he/his crew dumped sink/trash/rugs/mattress/furniture in the backyard, right next to the house, after renovating a unit. This was two months ago and unfortunately I just discovered it this week. PM offered no explanation except disposal was expensive and not included in the itemized quote for the reno (it was included). There are also many other issues, some of which breach the agreement in terms of monthly draws and statements. I have memorialized my complaints via email, saved text messages, and photographs and notified him of all of these issues.

The Agreement:

The PM agreement is for one year and we're about halfway through it. There is no liquidated damages provision (i.e., owner must pay for all management fees through the end of the contract, or anything like it). Mediation is the primary mechanism for resolution though some select items can be brought directly into probate-- (mechanics lien, foreclosures) none of which are at play right now. 

Strategy:

My primary objective is to just cut my losses, get my rent and deposits back, and move on. My plan is to finish resolving a cap-ex project we're involved in right now and then break up by:

1. Calling the PM (probably email because there's a .001% chance he'll answer) to discuss my issues and amicably propose that it may be in both of our interests to end the arrangement (PM has expressed interest in changing careers in next few years, extremely busy with personal matters that he's turning down new business). 

If he protests or threatens some type of action, then 

2) I will inform him in writing that the contract is over as of XX date due to (itemized list of his breach of contract), I will be filing complaints with various local private and governmental entities, I will be memorializing my true experiences on various online forums with photos included, and will take vigorous legal action including the filing of counterclaims as appropriate. 

I may be overthinking this but I want to cover my bases and be prepared.

Help:

My primary questions are:

1. If you've broken a PM contract how did it play out? Any legal action? 
2. What would you recommend doing in this situation? 
3. What else am I missing or should be mindful of?

Thanks in advance for your help! (Note: not looking for platitudes on the virtues of self management or how to choose a PM, just looking for help on how to get out of this contract)

Andy