All Forum Posts by: Robert S.

The machines were completely destroyed.

I may not have made this clear by the HOA comissioned these machines and they were jointly owned and operated with this business. IE - a coin machine for the laundry room etc.

Even if the HOA states otherwise? the bylaws state that the owner is responsible for all actions of the tenant.

 The tenants are junkies - which the owner was aware of and they have abandoned the unit and seem to Be on the run. A police report has been filed and warrants are out for their arrest. 

Your logic seems way off - these machines were on the property - the HOA states that the landlord is responsible for all actions of tenants. How would a bank robbery be anywhere similar?

Two tenants were renting a condominium unit from an owner in an HOA run building. Last week, both tenants robbed multiple privately owned vending machines on the property. The machines were commissioned by the HOA and the total damages were around $5,000.00. The HOA has told the entity that owns the machines that the owner of the condominium is financially responsible. There is video footage of the robbery which shows the tenants commiting the crime. The HOA has had numerous issues with these tenants and are also pursuing financial relief for other problems caused. The owner has begun the eviction notice but is he financially responsible for the actions of these tenants? He was aware of their poor behavior and the tenants appear to have abandoned the property post robbery.

We have an equity split already established and finalized for both properties. However, as we move forward we would like to have a better understanding of how to proceed if there were any factors overvalued on these 2 deals.

This is my first post so I will be a bit over indulgent in the details. However, I am hoping that a few more experienced members can PM me to provide some advice.

Background: I am a corporate lawyer that started purchasing investment properties a few years back. I personally own 11 units and have developed a good business model through blood, sweat, tears and trial and error. As I have progressed, a family member who is an accountant at a large out of state firm reached out and told me that he would like to join me in some investments. Our personalities greatly differ with he being more of the financial analysis/accounting type and me being more of the deal with tenants and find the deal type. After some discussion, we agreed to try (2) investments. I found 2 deals that I received via networking and we ended up getting both properties for a price that was way below market value. I already have both units rented and since he is out of state, I manage the renters, renovations and day to day operations. We are at the point where we need to decide equity splits and a fair revenue breakdown going forward. 

He has drafted a spreadsheet that analyzes various relevant factors in determining equity and I dealt with churning out the Operating Agreement for the partnership. We both would like a third party to analyze the spreadsheet as this is new territory for us and we would like a third party to review factors we observed when finalizing the equity in each unit. I also would like to run some deal points by some more experienced members to see if terms such as "deal finders fee" etc. are being given proper weight. I will gladly share the spreadsheet with anyone who PM's me to discuss my questions. We would both like to make sure that each person is being treated fairly and getting proper equity when analyzing the relevant factors.