Updated about 2 hours ago on . Most recent reply
Investment Company Owners Splitting; Want to hire us
This is a very sensitive question. We have 2 attorneys who are reviewing, but it's not clear. A company built several properties, and sold IN HOUSE to 2 of their members, but the sale has a private note attached to it. Company has been keeping rents coming in using a different software system, and applying rents to the debt. However, officers who are buying, are separating, and want us as their PM, and to move the tenants, bookkeeping, etc., to our system or one they choose, to capture all of the rents. They are 80% and first position, the company is 20% and second position.
What this means is that the entire development was started under the builder, and had hoped to sell to the ones in house, but they only chose to buy part of them. Just before signing the agreement with us, we suddenly got a call and then both sides have been fighting and having me talk to lawyers.
I decided that I would not be part of that. It is THEIR mess to sort out. However, I would consider amending the agreement and moving forward, if they would agree to use our system, We are fine with using their bank, and giving the tenants 30 days to transition to our management and all of the services we provide.
I was told that since we are a pass-through entity, we would be safe from any litigation if it happens between the officers, except for depositions. I explained to both parties, that we are a business that must hold our integrity, to do it by the books and our state and federal laws, no exceptions.
We must have a the officers sign after confirming the exact properties they are buying, insurance, and all obligations itemized.
What are your thoughts? Not all details are here, for risk of exposure, but we want to make sure that this is a plan that can work. We are not greedy, we have an excellent reputation, and that is key to us. I believe we can do an excellent job onboarding and communicating but we want what is best. So......... go!