How Much Does Loan Structure Affect Day-to-Day Property Management?

[Tracy Thielman]

For property managers and owners: how much does financing structure influence operational decisions like reserve planning, renovation timing, or cash flow management?

Do you see noticeable differences in how properties are run based on how they’re financed?

[Drew Sygit]

Quote from @Tracy Thielman:

For property managers and owners: how much does financing structure influence operational decisions like reserve planning, renovation timing, or cash flow management?

Do you see noticeable differences in how properties are run based on how they’re financed?

 Why would it?

PMC's really shouldn't make mortgage payments for property owners - what happens if tenant doesn't pay and there's no money to make the mortgage payment?
- There's no easy way, if any, to remove a 30-day late from an owner's credit profile:(

What often happens is owners not having adequae reserves, then trying to make their cashflow issues their PMC's issues by begging for money to pay their mortgages - via releasing Portfolio Minimums, Repair Funds, etc.