Reminder to be careful when you self manage

6 Replies

Check out this crazy story into today's Commercial Appeal (the Memphis hometown newspaper).

http://www.commercialappeal.com/news/local-news/crime/woman-accused-of-stealing-100000-from-boss_71932794

If you do not use professional management for your rental properties, please be sure to build in checks and balances to prevent ending up in a news story like this one.  Separation of duties is the best way to reduce the chance of fraud (i.e., do not let the same person handle all of the money coming in AND all of the money going out).

On the other hand, if you use professional management, please make sure they are reputable (e.g., licensed agents, members of NAR, members of NARPM, active on BiggerPockets, etc.).

Whether you self manage or have your properties professionally managed, this unfortunate event is a great reminder to surround yourself with the best team possible.  

The good news is that BiggerPockets is the best place we've found to get recommendations on building your team!

Medium crestcore logo finalDouglas Skipworth CPA, CFA, CrestCore Realty LLC | [email protected] | 9015501998 | http://www.crestcore.com | TN Agent # 320486, MS Agent # 20696, AR Agent # EB75123

A reminder to be careful who we hire period!  Especially if they will be handling your receivables.   That's the message I got, more than the scare us from self-managing title.  Thanks for the post @Douglas Skipworth !

@Steve Vaughan , I completely agree with you.  I think that's the conclusion I came to in actual the post, but I probably should have reworded the title.

Either way, surrounding yourself with as many high integrity, high performance players is definitely the best way to succeed in real estate investing.  

Thanks again to BiggerPockets for bringing so many like-minded investors together!

Medium crestcore logo finalDouglas Skipworth CPA, CFA, CrestCore Realty LLC | [email protected] | 9015501998 | http://www.crestcore.com | TN Agent # 320486, MS Agent # 20696, AR Agent # EB75123

Originally posted by @Mindy Jensen :

The boss says his rent decreased by $8,000/month since she started. Didn't he question that? That's a lot of money to lose in one month...

Reminds me of one of my wife's friends who had $286,000 missing from their medical practice & didn't realize it until the billing clerk went on extended sick leave. Makes you wonder who was reading the monthly reports on reimbursements & deposits???

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