I cut to the chase and tell them that I don't want to set them or myself up for failure.

Even if the offer does get past the agent, playing a game of telephone on a creative deal usually means failure.

Financing deals through several investors is basically a banking operation and if you have an investor who squeaks really loud you can have the state banking authority knocking on your door.What I'm saying is that there is no 100% safe way that avoids all banking and security issues regardless of what an attorney might tell you, after all, the attorney has an on going opportunity representing you as issues arise.The way to put such a lender group together is to obtain contractual loan agreements with your investors, as a loan committment, to make future loans available within a short period of time.Usually obtaing short term financing for long term obligations is a good formula for failure.

Do not be the person who does the day to day management of the property management company (of course this requires enough properties and cash flow for both companies to be viable....)LLC is better for limiting liability (hence the name Limited Liability Company) - HOWEVER - NO BUSINESS ENTITY will limit your liability if you personally are the one who is negligent/grossly negligent, etc... and your action or failure to act is the basis for a lawsuit where judgment is awarded to the plaintiff.If you have enough business to use the LLC owner and Corporation manager - this gives you the best of both worlds: better protection against liability and better tax savings through the corporation.The best structure is more complicated, but hopefully this gives a decent summary....

Thirdly, a 20% of gross rents factor for maintenance and vacancy is only accurate if 1) the property is FULLY stablized (new roof, new furnace, new windows, and so on)--and most of the TKRs I've seen do NOT meet this standard by a long shot, 2) if the property is VERY aggressively managed--heavy screening, prompt eviction, quick re-rent--a practice not common amongst most property managers, and 3) aggressive maintenance is done to maintain the capital repair items (changing furnace filters bi-monthly, cleaning gutters in the fall to avoid failure, maintaining metal roofs, cutting back trees to avoid roof damage, etc--again, uncommon amongst property managers).

My apartments are 30 years old.I have a maintenance guy do unit checks every 2 weeks.Basically checks water heater,heater,outside unit,light bulbs,ceiling fans,electric,plumbing,etc.We have water included in rent so stuff like replacing springs and o rings in the showers to prevent drips and replacing flappers in toilets to keep the water from running all the time.Sometimes the shutoff valve at the wall for the toilet doesn't close all the way to off or the float mechanism goes bad.You can buy a water pressure tester at Lowe's for 9 dollars.Just screw it on check for pressure.Should read 60 to 80 pounds.If it's higher than that you have to find the pressure regulator valve next to the water cutoff for the unit and adjust it.After adjusting if the pressure doesn't go down to 60 to 80 you have a bad pressure regulator that needs replacing.The importance of this is pressure is set for the cities and counties at around 160 for the fire hydrants.If pressure is high inside the apartments it can cause leaking and premature failure of plumbing parts.On the insurance we are required for replacement value and can't do market value.

(provide the mortgagee clause in the letter) In the letter inform the borrower that failure to complete the action and forward the correct documents to the lender will force the lender to assume the property is not insured and the lender will exercise their rights within the mortgage and note to insure the property.

I'm angry, because I know the deal involves a discount that I won't be allowed to partake of, but out-of-towners trying to "manage" a huge & scattered inventory of leftovers without a well-honed team in place is only going to result in an epic failure.

As all our members can see when logging in, I've written a letter to fill you in a little at:Hardware Failure February 4, 2012Thanks again to all of you for your support!

Bryan,It wasn't a failure, it was a learning experience - didn't you read her sig?