All Forum Posts by: Dmitri L.

An assignment fee is a good way to get started but you need to transition in to doing simultaneous closes. You'll make more money. And the seller and buyer will not know how much money you make.

Hi Jackie, nice to see your name on BP! Hope you found a buyer for those properties back in March.

Curious, could you share your thoughts on why a double close will make more money than an assignment? Wouldn't the second close add fees to the transaction, which could otherwise have been your profit?

Kimberly - good luck with the first deal! Once you have it under contract, please post the details, would be interested to hear it, and you'll likely get some great advice from the more experienced folks

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Advice - if you want an answer, ask a question.

How far North in CA? If you're outside of the Bay Area bubble land, you may be able to find deals closer to home. How long is your drive into OR?

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Originally posted by @Robert Cann:

Dmitri,

To keep things short, I would say that storage and apartments would be considered inferior goods to a certain extent. Now of course, you have different classes of apartments in different locations which have an influence on the type of good it would be considered (ie college apartments, blue collar/working class, upscale, etc)

Normal goods in my book to name a few would be retail centers (which typically take huge hits with economic downturns, especially without large anchor tenants), smaller or single tenant office properties, and warehouse/industrial properties (with highly leveraged tenants with tight margins running on leveraged A/R and inventory).

Now of course you will have exceptions to all of these rules, but in real estate, the risk of a property owner isn't in the building itself, but in the tenants ability to repay, and what risks the tenant subjects itself to. Finding a financially strong tenant is equally

Thanks Robert, that makes sense!

Extrapolating just one step further, I'd say that the quality and location of the building will definitely affect your ability to attract the right kind of financially strong tenants over the long run - whether that is commercial or residential - and therefore affect your long-term success with the property.

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@Robert Cann

Welcome to BP, awesome to have you here! I would love to hear more of your thoughts on the current cycle, as well as the ins and outs, and ups and downs, of CRE in general.

I like the distinction between "normal" and "inferior" goods, for hedging your investment. Do you consider both apartments and storage facilities to be inferior goods? In that case, what would be the "normal goods" component of your portfolio? Would this be some sort of active RE business such as flipping, to take advantage of the market up cycles? Something else?

Regards,

-Dmitri

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Originally posted by @Joe Villeneuve:

You're kidding...right?

What you've described is why you should fire them, not a reason to sue them. Have there been any monetary damages done to this property that you can document, that are sizeable enough to warrant the time an effort of legal recovery?

Sounds to me like you are just mad at yourself for not doing a better job of filtering out this PM in the first place, and not taking the responsibility for it.

From what I can see, so far, all you've "lost" is peace of mind...and a little bit of your ego. Fire them, replace the PM, learn from the experience (more valuable than what you've lost...or could gain by suing), ...and move on.

...and I say all of this as someone who likes to point out to others that if it wasn't for lawyers, you probably wouldn't need attorney's.

Great post! This probably describes 99% of frivolous lawsuits - just based on hurt feelings.

As investors, we can learn from the other side of this as well - manage relationships, avoid hurt feelings = avoid lawsuits.

3 Votes

I would say - fire them ASAP, find a better PM company, and move on. Unless they caused actual monetary damage to you, I don't see how a lawsuit would be worthwhile.

You can also try reporting them the TREC and the IRS if you feel there is sufficient grounds. Probably don't need a lawyer for this. Not issuing you a 1099 sounds like they might not have proper accounting practices in place, so both TREC/IRS would be interested to hear that I'm sure

Would you mind PMing me the name of this company? For future reference

Good luck with your situation!

Regards

Dmitri

5 Votes

Thanks James for the info! I actually got hooked up with another group on Meetup so all st for this Thursday. But will definitely check it out the next time I'm in town

Regards,

-Dmitri

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Dallas, Texas

Originally posted by @Dan Baker:

Wednesday's are good for me in general, I have other obligations. Monday, Thursday, Saturday's are best for me.

Dan assuming that should read Wednesdays are no good? I'm OK to move this to Thursdays instead

@Pyrrha Rivers - apologies Saturdays are no good for me due to family obligations.

So shall we say that the next one is:

Thursday September 17th, at 7:30pm in Yokohama ?

Pyrrha do you happen to have any venue suggestions? If you could help to co-ordinate this one and round up your local folks, would greatly appreciate it. Let's make this a good one!

Cheers

-Dmitri

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Hi All!

I'll be in town Thursday Aug 20th, so just wanted to see if anyone would be keen to meet up in the evening for a quick drink and to talk REI.

Personally my focus is buy and hold, and wholesaling, but really interested in making connections with great people throughout the industry!

Please post here if you're around, and we'll figure out a spot to meet up. Around 6pm?

Cheers!

-Dmitri

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Dallas, Texas

All Forum Posts by: Dmitri L.

Dmitri L. has started 16 posts and replied 306 times.

Post: Meetup in Tokyo - any interest??

Post: First wholesale deal

Post: Advice

Post: CRE Lender Looking to Invest

Post: CRE Lender Looking to Invest

Post: Is it worth it to sue?

Post: Is it worth it to sue?

Post: Mini-meetup Thursday night

Post: Meetup in Tokyo - any interest??

Thursday September 17th, at 7:30pm in Yokohama ?

Post: Mini-meetup Thursday night