All Forum Posts by: Craig Garrow

I did this once. To make a long story short, do NOT do it. Like James Wise said, you’ll wind up looking for a new tenant and a new handyman.

James Wise is the guy you need to talk to in Cleveland!

Scott Skinger You’re right. I think the best play is to just manage the building for now and re-evaluate in a year. I appreciate your insight. Thank you!

Mike S. Patrick Liska Scott Skinger Thanks for the replies! Let’s say hypothetically, you’re in my position. Most of my liquid cash is invested in my third apartment deal that I’ve got under contract, so I’m light on cash right now. *Assuming after due diligence and everything checks out* Maybe we can come up with something that looks like a reduced monthly management fee (half of what I normally charged) and a small equity stake (10% or so) and I like the idea of a quarterly distribution. There isn’t currently any income coming out of the building, so it’s on me to fill it, keep it full, etc. I do think there could be some good upside potential once the building is full and then on the back end for a sale. It sounds like the owner and his current partner don’t share the same vision, as the current owner wants to finish off apartments, and rent them, while the partner wants to run his business out of the building. How could this be set up? What would you recommend?

I had what sounds like it could be a pretty unique opportunity come up yesterday, and I’d like to see if I could get a little feedback! I just spoke to an investor that has two commercial buildings here in town. One has an office and two apartments, and the other has two apartments and room to build out two more. Initially, he was looking for a PM, but as we got further into the conversation, he told me that he is in the process of trying to buy his current partner in the project out, and would like to take on a new partner. As he puts it, someone with some skin in the game will manage the property more closely. So, I’ve heard of situations where the Property Manager takes a small ownership interest (say, 5-15%) in the Property they manage as compensation, sometimes with a reduced management fee, or no management fee. Has anyone had any experience in this, or how to go about setting it up? Some sort of partnership? This situation seems like it could be a good fit, assuming everything checks out after some due diligence. Thanks in advance for any advice!

I had some ice fall off of the roof of one of my buildings, and into the driveway...onto my tenant’s boyfriend’s new truck. Looks like it got pretty banged up. How should I approach this insurance wise?

+1 for the DoorGrow group on Facebook. Excellent content and a great group of PM entrepreneurs!

Do yourself a favor and buy The Book on Managing Rental Properties by Brandon & Heather Turner. I think if you buy directly from BP, you get the bonuses, which include almost any form you would ever need to manage rental properties.

James Wise Nailed it!

I’ll be there!