All Forum Posts by: David Edwards

Mike,

In my limited experience with property managers the usual flat fee is around 10% of gross income so if you are basically hiring them as such that might not be a bad place to start. In a partnership I'm involved in where I brought the deal and will be handling day to day decision making and managing the original renovation we are splitting things 65-35 so the partner bringing the funds will make around a 15% coc return annually. Any profit from a sale is split the same way after the investor gets their original funds back. Our setup has us splitting losses 50-50 as added insurance to the investor and as a way to show i have skin in the game. 

Lastly make sure to get everything in writing, I know this is family in your deal but any way to avoid confusion or conflicts down the road should things go south (in the deal or otherwise) is worth the time.

Hopefully that helps, 

Dave

@Stephanie Pieri, 

I've been out of the state for a bit but have been investing in Kalamazoo over the past year. Shoot me a PM if you have any specific things I could try and help you out with.

Morning BP,

To make a long story short I just spoke with my lender about acceptable transfers on my mortgage and they have determined that a deed transfer to an LLC is an "unacceptable transfer".

From your (the communities) prior experience what are my options here? I’m just looking to separate my personal assets (not much now but growing steadily) from my rental properties and the deals I’m partnering on.

I know LLC's are a bit of a trigger topic here so Please be nice to one another in the comments.

Thanks all for the read.

Not a bad point @Amy Beth

@Ray Harrell I think that's a good way to approach it. Next time I'll be more specific with what not to say with the manager in their interactions for these sorts of things. @John Underwood That's the plan should the initial cash for keys not work. @Alexander Felice the real issue is I didn't expect him to get better just to not be so hard to get rid of once the time came. 

Thanks for the comments guys.

@Dennis M. He was inherited though the sale. The manager said she though the name was familiar and when she met him she immediately recognized him (confirming her suspicion that remembering the name was a bad sign) . Initially in the sale I was under the impression he would be gone but that didn't pan out. 

Either way we are here now so I just need to figure out the most cost effective way to get them out.

@Ray Harrell I'm sure I can find an example of this somewhere on the site but since you brought it up is there any sort of standard to figure out how much you should be offering for something like this? Obviously the least possible effective amount is the goal. 

Afternoon all, 

I currently have a tenant in the upstairs of a duplex that was inherited in the sale and is becoming a bit of a problem. 

They are on a month to month lease which we have informed them we will not be renewing for a couple reasons, the first being that they are a complete slob and are trashing the place / from the looks of it are the reason the place had bedbugs with the previous owner , the second being that they have dogs that are not covered under my insurance. 

They were on a month to month lease so my first mistake was assuming this would be a quick removal. 

My property manager has notified them that we will not be renewing the lease at the end of the month (last month) and the tenant has reminded her that she evicted him a few years back from another place. In an attempt to work with the guy (since he had been there for a few years prior)  when he said he needed until the end of this month to get a place for him and his dogs (while threatening to make moving out a pain for all of us if we didn't let him hang until then) it seemed like the easiest thing would be to just have him for an additional month and then have him out after this month. 

It shouldn't have surprised me when he didn't pay for this month but for some reason it did. My manager has basically said that we can either go after the money or the eviction and that her inclination is to wait until the end of the month and then if he isn't gone begin proceedings (to avoid legal fees) .

Am I looking at this wrong when I think its best to get the ball rolling on the eviction now and stop the bleeding as fast as we can?  The way I see it if he doesn't pay for 2 months we are already out $900. 

I know there are people out there with similar stories. How'd you resolve this and get business back to usual, and what would you recommend someone in my shoes should be looking at as a best course of action? Also the property is in Michigan. 

Thanks for the read! 

@Jamin Olds I’m using Chad Schuring currently (schuringinsurance.com).

Friendly people to work with, didn’t try and upsell me and the price was right. 

Good luck, 

Dave 

Credit card (or debit) for a self generating paper trail. Also points, miles or whatever they come with. Cash doesn't have any of those. 

Excel might get you where you need to be but quicken wood be considered a business expense and its probably easier to learn how to use it when you are working with smaller numbers. Its also under $100 so I wouldn't think this is something you couldn't make up for pretty quickly. No sense in pinching pennies on something that will make your life much easier moving forward.