All Forum Posts by: Christopher Mendoza

Has anyone had any experience that they can share concerning Real Property Management Suburban Chicago? This is the RPM located in Franklin Park.  Either good or bad, it doesn't matter. Anything will help. 

I am considering them to be the PM for a fourplex that I have in Riverside, IL. It's my understanding that RPM has a franchise structure, so each one is independently owned and operated. I've already talked with them, and I figured the next step is to see if anyone on here has any insight they can offer. Thanks in advance. 

@Kasey Ryan I don't have a property manager recommendation; however, as a fellow novice RE investor there is some benefit to doing the screening and tenant placement yourself. Obviously, you would want someone with experience to help guide you. There is a tremendous amount of information you can learn by doing the screening and placement. 

I have found all of my deals through MLS using a realtor. I know there are people on here that have used alternative methods for acquisition and they can probably provide some insight. I am in the process of closing on a property in Riverside, IL. Feel free to send me a message if you want any insight on Riverside, IL.

@Michelle Nicholls A traditional hedge fund will likely have a Form D filing with the SEC. Here is a link to the EDGAR system: http://www.sec.gov/edgar/searchedgar/companysearch.html The EDGAR system is a governmental filing system for entities regulated or overseen by the Securities Exchange Commission (SEC). The pool that holds the investors money for a hedge fund has to file a Form D as part of its exemption from registration of its securities (interest in the fund). If Capital Rock is a traditional hedge fund, then they should have filed a Form D with the SEC. The Form D has identifying information regarding assets, key management, etc. 

@Taylor McClung is right.  As a landlord, you have an obligation to mitigate damages. If the tenant was paying $1,400 a month and leaves in December, and you are only able to rent it out for $1,000 a month. Then, in all likelihood, you can still hold the old tenant responsible for the difference for the duration of the previous tenant's lease. 

@Jerry Kisasonak 

 @Kevin McGarrey is right. Reporting to the State Disciplinary Board is probably the proper course of action. I am not licensed in your state, but I can't imagine what this attorney is doing as being legal or in compliance with the state's rules and regulations for attorney's. It is not your fault that his client didn't pay for the services rendered to that client. Imagine if the other client pays at some point. Now he has your money and his client's money. 

@Jay Helms 

 Here is an article that talks a bit more about the reason for why the management and owners were held liable for the murder: http://www.pnj.com/story/news/local/escambia-count...The linked article suggests that there had been a history of crime at the complex. 

In all likelihood, the underlying claim was negligence. Now, negligence is a legal term that evolves depending on the situation, participants, etc. It is comprised of a few elements, one of which is breach of the duty of care. The most highly contested portion of that case was probably the breach of that duty of care a landlord owes its tenants. 

As a landlord, property manager, owner, you should always do an assessment of your property and the environment. Attorneys have tried to put the breach of the duty of care into mathematical terms whether any action or inaction was negligent by using the BPL analysis:

B=burden (cost)

P=probability of loss

L=gravity of loss

If the BP>L, then you are likely negligent. Let me give you an example using the situation involving the cited article. It is difficult to quantify all of this, so it is very much an art as it is a mathematical equation.

We know there is a history of crime in the area. We don't know if it is domestic violence, drug trafficking, kidnapping, or murder. Let's assume that it was violent crime, such as strong arm robbery, shootings, etc. 

As a result, this is how our analysis looks:

L=strong-arm robbery, shooting, murder, severe injury

P=probably a high probability considering that these activities have been on going in the complex. According to the article, this complex had a history of crime.

B=cost to curb the loss. This can include stuff such as putting a gate around the complex so only residents can enter, putting in motion-activated lights, security guard, emergency/panic alarms (similar to what you see on university campuses). 

Once you look at it, you can probably see how the BP>L. We don't know the complete facts, but the BPL analysis helps people understand negligence. The L is pretty high--there is not much worst than murder. The P is likely high because of the criminal activity at the complex. The B can vary depending on what the landlord chooses to do. 

I know you had a disclaimer in your original post. But, as a lawyer, I should also say that this advice is general in nature and does not create an attorney-client relationship. 

@Ganesh S. As an attorney, I would never personally guarantee the payment of a third-party. It is just ridiculous, and it arguably could create a conflict of interest in that he is now representing himself with regards to the guarantee. With that being said, be sure to check out the NC State Bar (the agency that governs attorneys--e.g., grants and revokes licenses, etc): 

1. http://www.ncbar.com/discipline/disorders.asp -- link where you can see if there is any disciplinary order against the attorney

2. http://www.ncbar.gov/public/alternatives.asp -- link to the attorney-client assistance program. Reach out to them to figure out if you can find out if there is any malfeasance behind the attorney's actions. 

Hopefully, if the items were held in a client trust account, there should be an accounting of the funds. There are cases of attorney's dipping into client trust accounts, and that is a major violation that can lead to criminal prosecution. 

@David Frol Hi David. I originally posted a reply, and it was removed for self-promotion reasons. I revised the post to comply with the posting guidelines.

 Hi David. I work in this area as an attorney with introducing brokers and futures commission merchants (FCM). In all likelihood, they are going to ask you to use a custodian to transfer funds to the FCM. You will also have to execute a customer agreement with the FCM (and, perhaps, the introducing broker, if any). I have reviewed plenty of these agreements before on behalf of the FCMs and clients, and you should review them with great care. In all likelihood, unless you have a big account, the FCM is unlikely to waive or modify its terms.

Also, if the trader (I am assuming it isn't a commodity trading advisor) is handling all of the trading, I assume this is a discretionary trading account. As a result, the trader will ask for you to sign a power of attorney (POA) to permit him to execute trades. If you want to figure out if your trader or firm (FCM or introducing broker) that will be handling the trading has any recent regulatory or legal violations, check out https://www.nfa.futures.org/basicnet/welcome.aspx THE LINK IS TO A REGULATORY SITE that oversees all FUTURES-MARKET PARTICIPANTS that interact with clients. You will need to put in either the trader's name (he should have a Series 3 license) or the firm's name. It will pull up vital information on the trader and firm.

I am a lawyer, so I need to mention that this is not legal advice. The above is just general in nature and is not meant to create any attorney-client relationship. 

@Elizabeth Einecke Is the money still in escrow? Also, LLCs are perpetual in nature, unless you put in a end date, the LLC still exists. Look up your LLC using the CA Business Search: http://kepler.sos.ca.gov/ See the reason for its suspension, if any. If you failed to pay your taxes, it will say "FTB Suspended" under status. If it says that, then you should go to the following site and contact the Franchise Tax Board: https://www.ftb.ca.gov/businesses/faq/728.shtml

@Burke B. What is the industry? I can provide some recommendations. I am a contracts attorney with a focus on general corporate matters and hedge funds. Most attorneys will bill for the time to review and revise (if applicable) the contract. The amount of time depends on the first draft of the contract; sometimes the contracts are reasonably drafted (requiring little review), but other times the contracts are completely one-sided (requiring a lot of revisions).