All Forum Posts by: John Smith

The intent is to give someone 25% net cash flow but no other compensation so they have to make the unit produce to get paid. They make good money for not much work when rented, but their income goes to zero when empty as incentive to refill the unit with a long term tenant at a competitive rent amount.

I do attend the local REIA which is really helpful. I'm thinking of finding someone new there to teach because I know the basics plus some since I've been a landlord for 10 years but I just don't want to live in Ohio anymore. I just need honest boots on the ground that will ask me when questions come up. Hopefully it could be a good combination of mentoring and a little bit of compensation for someone instead of them paying tens of thousands for a bad seminar. (There are lots of good ones but we all know some that aren't!)

The Ohio market severely lacks good property managers which I think has a lot to do with the traditional terms of property management. 10% of an 800 rental is only 80 bucks a month. Do you guys think that's enough to incentivize someone to do a good job?

I have several homes I would like to do this to but here is the situation for the first subject property.

Value: 70 k no work needed and no loans

Rent: Vacant now rents for $850

Tax: 50 per month

Insurance: 55 per month

Maintenance/Repairs: 150 per month

Utilities: All paid by tenant

Net Cash flow: 595

I am moving to a new area and am interested in training a new investor to be my property manager in the area I'm moving from. However, I think 85 bucks per month isn't a reasonable fee to make sure they do a good job and also isn't performance driven.

What about an arrangement like this:

Property Manager will lease, oversee repairs, collect rent, file evictions in exchange for 25% of the net cash flow. I.E. they get paid the same way I do and only when the property makes money. 

Has anyone ever experimented with other property management payment arrangements? Our area also has properties that rent for 500 bucks a month so 50 bucks to manage tenants in the most problem areas? Not worth it to me. I understand the rent up fee but still a lot of hassle for the money. Agree?

Could something like this work to make a property judgement proof?

Property owned by Ownership LLC is worth 100 k. Has a 100 k interest only mortgage to another LLC I own called Capital Holding LLC. Slip and fall happens with a judgement lien of 10 k vs Ownership LLC.

Since Capital Holding LLC has a 100% LTV mortgage recorded ahead of the 10 k judgement lien how could the judgement ever be collected? Worst case just sell the property so the money comes back to Capital Holding LLC which I also own.

Seems pretty simple. Am I missing something?