All Forum Posts by: Andrey Y.

Hey @Peter S. @Eva S. @Meghan Hunter 

Thank you so much for bringing these issues to our attention. 

First and foremost, we’re truly sorry to hear about your experience with our property management services. Clearly, the level of service you received fell short of the high standards we strive to uphold, and for that, we sincerely apologize.

Please know that we take this feedback very seriously and are already in the process of reviewing the issues you’ve highlighted. 

I want to clarify that we’d like to address the specific concerns raised and identify and implement broader improvements in our customer service and response protocols. 

We serve over 7,000 property owners (as well as 25,000+ residents) across the country, and you can imagine there are different levels of expectations and experiences across our client base.

For this reason, we have a 100% Happiness Guarantee that a client can fire us for any reason without incurring a penalty or cancellation fee. 

We’re fully committed to resolving these types of issues. We’re also working to ensure our communication channels are more accessible and responsive to our clients’ needs.

Your experience provides us with a valuable opportunity to better our services, and we are grateful for the chance to make things right. 

We’ll contact you directly to discuss the specific steps we’re taking and ensure that your concerns are fully addressed. Thank you for your patience and understanding as we work through this. Your trust in us is paramount; we’re dedicated to restoring it.

You ere happy your cpa made a massive mistake? I bet he’s glad to hear this and will continue to provide you mistakes in the future to be happy about. 

@Andrey Y. To add on to what others have said, you should find a CPA who is willing to take the time to explain these things to you in a way that makes sense. This is YOUR tax return and YOUR finances, so you should understand them (at least to an extent). Yes, CPAs are human and make mistakes (many just rely on tax prep software to spit out an answer), but a good CPA will look for tax-saving opportunities and communicate with you on why/how to implement them.

Good on you for not accepting and paying something that didn't make sense, and for asking about it.

because it is relevent.

Long-term capital gains are not just taxed at 15%...they can be taxed at 0% or even 20%.
Furthermore, there is a potential 3.8% net investment income tax.
Furthermore, there is depreciation recapture which is taxed up to 25%

Talk to your CPA and have him explain the return to you where you have the opportunity to ask him these questions. 

@Andrey Y. just based on your comment about the CPA taking weeks to reply to an email, I recommend you looking at other options.  I would always recommend getting a CPA who is a specialist in the type of asset you’re investing in. I believe there are one or two CPAs in this thread so you may want to reach out to them. Feel free to PM me if you want to discuss this further. Good luck!

Realty Doctors - property purchase

Realty Medics - property management 

I will not be doing future business with either. My review was far too kind.

I skimmed the thread and didn't read every response.  The ones with a lot of votes seemed like good responses.

This is another installment of holy war threads on BiggerPockets so I won't attempt to convince anyone that their perspective and unique circumstances are incorrect.  What I wanted to comment on though is that risk and return are inextricably linked.  You CAN'T achieve 30%+ returns consistently without bearing more risk.  If you could hedge fund managers would quickly outcompete your capital with large swaths of capital.  

Underwriting sponsors and their opportunities can easily be a full time job if it is done properly.  If you do decide to invest with what seems like a trustworthy sponsor the best way to do so is to start with a small amount of capital, observe performance, reporting, etc. and then increase your contribution on the next deal.  Ideally this would be done after doing proper diligence and making sure that the sponsor's skill and expertise matches the opportunity being presented.  

What you'll find is that the better sponsors are likely to have a lower return to LPs because they present less risk and are rightfully keeping more of the profits for themselves. The game as a LP is to find a good risk-adjusted opportunity that fits with your tolerance and matches the suitability for your portfolio. The kicker is that as the sponsor matures they're going to offer less to LPs and you may have to find a new sponsor if your goal truly is to achieve 30%+ returns (IRR, MIRR, or pick your measure) annually. Just make sure you impute the 0% returns you get while the capital sits idly waiting for a new project and the value of your time in underwriting that could have been used on something else.

There ain't no such thing as a free lunch.  Whether or not a passive investment in a private opportunity works for you depends on many things.  Don't be fooled by the sirens calling you and also don't be scared of your own shadow.  Try to dispassionately evaluate every opportunity with a goal of maximizing after-tax returns net of risk in line with your own goals and tolerances.