Has anybody worked with the property management company Prime Realty Group in Kansas City, MO?
I currently use Prime Realty Group for PM service in KCMO, they manage one turnkey property for me. Only have been using them for two months, so far no complaints.
No, I'm taking a different approach to my investing.
Hi @Christopher Suh still no issues with them. Rent has been paid on time!
Thanks for the update @Ramon Fyffe .
I purchased a turnkey through them. The buying process was flawless. I attended the inspection and John agreed to fix each and every item the inspector pointed out. I was thrilled. I closed on my property on October 28th. Today is January 16th and I have yet to see a dime of rent. Before making the decision to purchase the property, I was told that they had a lease signed for $1,100/month (I purchased the house for $100K). As it turns out (which they never told me), that tenant backed out and they apparently then applied for Section 8 and now have a renter in place paying $980 ($127 of which she pays and $857 of which the housing authority pays) and supposedly there is some government program that is making up the difference (I have yet to see any documentation on this). Apparently because of the complications with this accounting, they were not able to deposit the rent in my account last month but promised me that I'd see a deposit on the 15th of January which came and went with no deposit nor a statement of any kind. I am beyond frustrated with them right now and happened upon this thread tonight and figured I'd chime in. Hope to have better news soon but as of today, 75 days after closing on the property, I've not seen a dime in rent nor a monthly statement of any kind.
@Emily Powell I am sorry to hear about your trouble with this investment and company. Did you have a contractual agreement with them that guaranteed cash flow from day 1 - ie: a renter in place or they's pay you the equivalent rent? Please continue to update us on BP about your experience with this company.
good to know who not to go with
Back with an update. Finally received a statement from them this morning. Apparently they mailed a check on the 15th (which I'm not sure why they did, since I was set up with direct deposit in November). When I inquired as to why a check was mailed (which would not have made it to me because I travel for work 365 days/year), they stopped payment on the check and issued a direct deposit, which I'm told will hit my account tomorrow. While I am still unclear as to why this didn't happen sooner, I'm glad it finally happened. Hopefully the $ will hit my account tomorrow and everything will be smooth sailing moving forward. I am still unclear as to what government program is making up the difference in rent between what I was initially told it would get and what it is actually getting from Sec 8, but if the $ is coming to me, I guess I can't complain. I just wonder what will happen in year 2. So there you have it. Better news today than when I wrote the previous post a few days ago. Here's hoping it only going up from here.
Not that anyone particularly cares, but in the event that someone finds this thread and want's to know how this was resolved, I finally received a deposit in my account today. And I am told that the program making up the difference between what I was quoted for rent initially and what I am receiving from the housing authority (and tenant) is called SAVE (
www.saveinckc.org/). I'm not sure I understand why they are covering the difference, but I'm grateful to be receiving the $. If anyone knows anything about the program and would like to enlighten me, I'd love to hear. So hopefully it will be smooth sailing going forward.
Originally posted by @Emily Powell :
And I am told that the program making up the difference between what I was quoted for rent initially and what I am receiving from the housing authority (and tenant) is called SAVE (www.saveinckc.org/).
I hadn't heard of SAVE before, but their website says they started out in the 1980s as a hospice for people living with HIV or AIDS. More recently (not sure exactly when), they expanded their scope "to serve those managing a mental illness and substance abuse, in addition to those living with HIV/AIDS." Looking at their list of services , the one that seems to match the situation the best is "Tenant Based Rental Assistance", although it could be a couple of their other programs. It appears they are a 501(c)(3) non-profit.
Thanks for sharing @Emily Powell
@Matt R. - Thanks. Yeah, I saw that too. I'm just confused about why this program would compensate the owner for the PM misquoting an accurate rent amount. I feel as though it would be my loss for not doing my due diligence and confirming that the rent amount quoted by the PM was an accurate amount. It was my fault for trusting when I was told that a lease was signed for $1,100 but when that tenant backed out and the PM then put a Section 8 tenant in, the housing authority deemed the market rent to be $980. So I'm not sure I understand why this SAVE program would then compensate me for the difference. I haven't seen any documentation from this program, so it's possible that PRG is just giving me the $ and saying it's coming from SAVE. I know I shouldn't be complaining about receiving this $, I just want to understand where it's coming from and John @ PRG isn't exactly great at communication. Just seems odd to me that this program would compensate me when it was nobody's fault other than mine for trusting my PM. Does that make sense?
I don't know, but I think what may be happening is that your tenant was previously getting assistance from both Section 8 and SAVE. That tenant needed a different place, for whatever reason, and chose your property. Section 8 said they'd only pay $980, so the tenant asked SAVE if SAVE could pay the difference of $120, and SAVE said yes.
Something that seems a little strange here, though, is that I've heard that Section 8 wants what they pay, plus what the tenant pays, to be the entire amount of rent. In other words, the landlord or PM isn't allowed to say "I want the rent to be $1000, but the combination of the Section 8 assistance and your Section 8 contribution will be $900. So you need to pay me $100 cash on the side so we're even." This situation sort of feels like that. Maybe it's different if the "extra" money is coming from an assistance agency like SAVE. I have zero experience with Section 8.
It might be worth trying to talk to SAVE. They probably can't give you specific information on a particular client of theirs, but you could ask them if combining their rent assistance with Section 8 is a thing that happens.
Interesting theory. To add an extra bit of confusion, my PM deposited all 12 months of this difference in rent into my account with the first month's rent. So the $120 difference (which is supposedly coming from SAVE) x 12 months = $1,440 was added to the first month's rent deposit. So either my PM is fronting the $ they're getting from SAVE or...heck, I don't know or what. Like I said, I'm happy to have the $, just confused about where (and why) it's coming from. More importantly, I'm curious what will happen in year 2. Maybe I'll call SAVE and inquire. Good suggestion, @Matt R. .
Thanks for the update. Just for clarification on the Bigger Pockets Forum. The reason Ms. Powell did not receive her property statement and money on time is because she tried to renegotiate the terms of her property management agreement after closing. (all the terms where already agreed upon and she had the agreement a month in advance before closing) So why renegotiate after closing a deal, I don't know.... I know everyone on the buyer or seller side does not like to negotiate after the deal is signed and finished.
This delayed the process of sending Emily's money. How would I know what bank account to send her money too? Emily, sent the her agreement to us after the next months cut off period and simply forgot she told me but the real reason was she wanted to make a deal after the deal was already made. It takes time for proper accounting. Especially, to be done correctly.
To this date her investment has paid like it should and every payment has been made to her. She just left out quite a few facts that where important to why her money was not on time.
Hey, John. Just checking in again. In addition to the below, could you please send over a copy of the agreement, countersigned by PRG? And what is your standard schedule for rent deposits? I understand that I held up the process by sending back the agreement behind schedule, I was just curious when I should expect to see a deposit hit the account, so I know to look out for it.
VIA email from Emily on 12/3 (she closed on 10/28)
Ms. Powell is a quality client and I appreciate her business. I completely understand her frustration and to say I have been perfect would be far from the truth. She was great investor for those of you looking to make an investment aboard do what Emily did. Order an inspection, get an appraisal, and VISIT the property. She bought a great house which she likes and the property is producing every dime it is suppose too.
Welcome to Bigger Pockets, John! Glad to have you here. I think hearing both sides of every story is valuable to BP members. With that said, ...
To clarify your clarification... No management terms were agreed to in advance. I did have the agreement 10 days before closing, and I absolutely should have had the conversation about the terms then, and not after closing. That was absolutely my mistake. But nothing had been agreed to. No management deal was signed nor was anything agreed to verbally, only the deal for the sale of the house. In my mind, the deal for the house and the deal for managing the house were not one in the same, so my agreeing to purchase the house was not in fact an agreement to have PRG manage the house as well. And while I understand that the delay in sending the management agreement to you delayed the November rent, it doesn't explain why there was no rent deposit in December. Nobody from PRG reached out to tell me that I wasn't going to receive a rent payment in December. From my perspective, if another month was going to come and go with no payment, I should have been contacted to be informed that there would be no December deposit (the November delay I will take responsibility for) with an explanation as to why. After finally receiving a statement/deposit in January and another in February, as we discussed over the phone on Thursday, I am still missing December, January and February rent from the tenant (the housing authority portion has been paid to me). I appreciate that you are going to have an off-cycle payment made to cover these payments, but the fact that the statements/payments are still wrong is very frustrating. I am still holding out hope that the accounting on the property will get sorted out soon.
Why did you back date your agreement then? to the purchase date? If they weren't one in the same. Then I should charge you a leasing fee.... Maybe that would be fair for your mistake since they are separate companies. One was with real estate and the other for property management both executed at different times
You still backed dated the agreement which made the mistake happen. NOW since we are both on this forum, which involves people who really don't know anything about this deal or maybe real estate at all. How could you possibly think the deals where not the same. We met at the same office, same people and your negotiating with the same person
I picked you up personally, drove you to the house, drove you to other investments, drove you by the my office together. You met everyone and you could call my office. What is your point of being on this conversation here on a public forum?
After our conversation Thurs I went ahead and back dated ALL the property management documents and recreated the statements in Propertyware back to Oct. 28th , which was not a simple task. However, this is done. All are inside your property portal. Guess what they were right from the first statement, however broke it down into terms so you can understand.
Also, I don't feel welcome on Bigger Pockets it feels like I am defending myself and I don't even know the person starting this thread, who is Kevin Trumball . You drove me here on purpose. My company has been in business for over 10 years and I don't appreciate it. There is a reason I am not on Facebook. Its because I don't like gossip or opinion of people who do not know what they are talking about. Which a lot of people do but I don't . look at the two guys above who know nothing about our deal making crazy comments.
I watch people market 50k inner city homes like gold on here and it makes me sick. they might be worth 30k. People get ripped off more on this site than I have ever seen. IT makes good businesses look terrible. I don't need to get business from here nor do I want it. Investors call me all the time and I do the right thing, put them into stable neighborhood and deliver on the rent. This forum is not a place to discuss business its purely entertainment and I hate to say it Bigger Pockets is a place for people to get scammed. I hate watching what people post on here. So thanks for inviting me in . So I can tell everyone that your rents are paid and we sold you a quality rental.
Sorry about the delay, really I am but don't like gossip forums. Thank you for owning that. I am sorry that you did not get a call when your statement was later than you anticipated....
Bottom line here to gossip or defend myself
Real Estate is a business if you don't understand it than don't listen to someone you met over the internet. You will be scammed !!!! ( here is how good transactions go down) Most win and some lose its a investment and most can be controlled if you follow the correct processes ... Emily purchased a home for an investment. She flew into town looked at the property and neighborhood. Had it inspected which all the repairs on the report where fixed to her liking. Then she ordered an appraisal which justified the value. THEN closed on the property, after all the due diligence. The property was leased for the amount she was quoted. Then a property management company will account for the payments and deliver to the owner.
However Emily missed turning in her property management agreement. Which trigger her payments to become late (even thou we were not under contract our company held her payments and paid her completely) we Treated her like she was a client, however clearly in her statement above she was not a client and was still shopping managers. Man I should have turned down the agreement.... Dang it
The tenant pays her rent every month. Emily gets a check direct deposit because she can not receive mail. Please Emily contact me by my email or phone we are conducting business.
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@Ron Quinn - PM me. I am interested in turn key providers in the KC area. I own one property there and am interested in investing in more.
@Christopher J Lemmon -- fell free to PM me for more information on Prime Realty Group. They are my personal property manager in KC. I am also familiar with MOST ALL of the rehabbers and property providers in the market.
I've also had several "turnkey" nightmares there with certain providers and properrrt managers. Happy to share those as well.
@Ron Quinn Can you share your top 3 with me as well. Interested in KC
@Peter S. PM me, I don't believe I can share multiple providers due to the self promotion policy, There are 3 very good companies in KC, However there are companies that I would steer away from as well... The company I work along side now goes above and beyond for there clients and tenants. I have a list of investors, real estate agents and turn key providers that have violated morals of the industry not considering the safety of the tenants and putting the family and INVESTOR at a huge risk. I will help anyone wanting information before they hire a provider in the KC market just PM me. I have renovated 400 houses in the past 5 years and have met almost every provider, real estate agent, private investors and the list goes on.
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