All Forum Posts by: George Creel

@Blair Poelman

I agree with what you're saying.  Property managers do deal with a lot of administrative issues.  And they do tend to charge when they have to make unscheduled visits to the property (appropriately).  But the thread involved them getting paid extra for actually collecting late rent.  Collecting the rent is the most basic portion of their job that should not get extra pay.

If $100,000 is raised as a group, and an individual gave $7,000, then he has a 7% share of profits.  If another $100,000 is raised by the group, but the individual did not give additional funds, then his share falls to 3.5%. (ie 7,000/200,000).

You would only have to track total individual and total group contributions to calculate percentage ownership.

Profits are given out based on percentage ownership of group.

Profits should be distributed based on shares invested in entire business regardless of whether they invest in a particular house or not.

The more troublesome issue is how to reimburse the member who inevitably will put more personal effort into the business.  There is either a division of labor or someone will need to receive some small salary as general manager.

Seems to me exactly the way to do it . . . if you can get the deal. 70% ARV - Rehab cost would be even better. What is the rule . . make 10 offers to get one acceptance?

I assumed you could rent at $600 per door ($1200 per month).  I could not get your property to cash flow.  Don't do it.

For 10% of the rent, I expect PMs to actually work.  Simply collecting the rent fee on time (as the tenant is contracted to do) is not work.  The work actually occurs when problems arise.  I should not have to pay them extra for problems they are suppose to MANAGE.

I would say that depends on the size of the membership fee.

$200 per year for monthly meet-ups is probably just paying the cost of using the meeting space.