All Forum Posts by: David Kane

Hello Dan,

When it comes to paying owner funds, there should not be excuses... only facts. There  are some issues that may prevent a payment being sent to an owner every month, but it should be extremely clear why funds aren't being disbursed. I see that you are in Canada, so finding a contract attorney and working through legalities may be difficult. Are you at least receiving your monthly statements that show whether the tenant is paying and what expenses might be offsetting payments to you?  This is a basic "must do" task for a property manager.

What I would suggest in your situation is to find another property manager who can help you navigate through this issue. You've already received some sound advice on finding a manager, but that would be your best "next-step".  The new manager can review the details of your situation and help translate what's happening with your funds and what your management agreement allows for termination.

You have a valuable asset, it's very important that you always feel your best interests are the priority of an agent you choose.

Hello Jason,

People have begun in real estate investing with less than it sounds like you have and ended up very successful, not to say this is easy.  Keep reading, keep watching podcasts, find mentors, perhaps partner on your first few deals with others who have more experience. If you find you have the passion, you will find ways to make it work.

Do you have prepayment penalties on your previous loans?  If not, you can probably find a commercial lender who will bundle all the debt into one commercial loan and pay off the previous loans.

If you are purchasing buy-and-hold properties, you don't want to seek out hard money loans.  The interest rate will really hurt your cash flow.

Hello Moncy, Like any business relationship, the success with your property manager will depend on honest and respectful conversation.  There could be many reasons why they are performing maintenance without discussing it with you first; the most important determination is whether the work being done was necessary.  The most litigated issue in property management is always maintenance-related.  Georgia law is pretty clear in that an owner is responsible to keep their property maintained and property manager's role is about risk avoidance to save you potential legal dollars added on to the cost of maintenance.  No offense to Matthew, but I don't agree that a property manager will immediately resort to getting work done without discussion by lowering the price.  A good property manager is going to get the work done at the most reasonable price possible.  My contracts now put the threshold for a conversation prior to conducting repairs at $500 because my investors know that I'm a partner with them and will not perform work that doesn't need to be done, plus I care about the continuing value of their property.  

Bottom line, I would ask for an appointment, sit down and review the maintenance items with your current manager.. if it's all reasonable, then just ask how you can have better communication. If it's not reasonable, then you need to have a different conversation.

Hello Jeremy,

Atlanta is a market with so many choices of management company.  Some find that the largest is not always the best, so before you take any of our advice write down what you really want in a manager.  The obvious, price, may not be the decision-making driver.  There are reasons you left your previous manager, so make sure you capture all of that and build some of your interview process around it. 

Hi Jeremy,

Sorry I didn't see this earlier. If you haven't found what you're looking for, take a look at Paragon Accounting and Tax Solutions.  They're in Woodstock.  They spoke at one or our recent NARPM meetings and were extremely knowledgeable about the real estate business.  After hearing them I'm planning on moving my accounts to them.

Hello Marc, 

In answer to your other question, there is a one year redemption period in Georgia. 

If the owner wants to redeem the property, these will be their costs... mostly paid to you!

They’ll have to pay:

• the amount purchaser paid for the property at the tax sale
• a premium of 20% for the first year or fraction of a year which has elapsed between the sale date and the redemption date (and 10% for each year or fraction of a year thereafter)
• any taxes purchaser paid on the property after the sale, and
• any special assessments on the property (Ga. Code Ann. § 48-4-42).

If they don’t redeem until more than 30 days after the notice giving the redemption deadline, they'll also have to pay the sheriff's cost for serving the notice and publishing the notice in a newspaper (Ga. Code Ann. § 48-4-42).

Robert Gilstrap is correct,  you are getting into areas that can get costly.  Some very expensive mistakes in life include: Going to the IRS without a CPA, Going in front of the Judge without a lawyer and dealing with problematic tenants without a professional property manager.  It may be very worth your time to give a local property manager a call and finding out how they can help you run your property like a business... look for one that is a member of NARPM.

I've worked with Mike Jacobs over the years and have found him to be very knowledgeable:

Michael E. Jacobs

North Atlanta Law Group, P.C.

Jampol-Jacobs

2475 Northwinds Parkway

Suite 130

Alpharetta, Georgia 30009

Great comment Frank,  but I think we'll find that every state is slightly different.  In Georgia, the tax records seem to be fairly up to date... possibly just due to the difference in volume?

I saw that Lindsay is from Buford, Ga and assumed the target property was also.  That could be a bad assumption.  Maybe she'll visit again and give us an update.