All Forum Posts by: Lisa T.

Last month we also received an official legal notice that Autumn has filed bankruptcy.

We were caught up in the debacle when Strategy Properties dumped all their PM clients on Autumn a couple years ago. We immediately changed to RPM but moved again within that first year due to poor RPM management.

We have been with Tradewinds for 3 years and Scott has managed our properties well. He has a number of old Strategy, RPM and Autumn clients so is experienced now dealing with the problems during transition.

I suspect we recd the legal notice because we're still trying to get security deposits owed us from Autumn. Strategy transferred them to her without our permission.

I'd suggest you get a new Property Manager immediately who can connect with your tenants.  If you don't have copies of leases etc. you need to have new PM get those in place right away and have future rent  directed per new leases.  Next, you'll have to figure out what Autumn owes you, both rent and security deposits, and file with the bankruptcy court.  

I am not an attorney but if it was me, I would get your new PM in place immediately and just send a US Mail certified notice to Autumn that you have a new PM effective immediately due to their failure to ..... and include contact information at the new PM office.  (It will probably come back showing delivery attempts, just keep it for your records.)  Let your new PM  guide you what to include -- youll want to ask for sevurity deposits, rent collected and not deposited in your account, leases, tenant rent roll.  New PM will notify your tenants.  I suspect you'll also have to figure out with your new PM how to get the 2023 IRS rent certificates to your tenants by January 31st.

It's ugly but best to take action immediately and try to right the ship.  

Received notice in mail yesterday that Autumn Property Management has filed bankruptcy.

We were contracted with her for less than 60 days after Strategy Properties dumped all their clients over to her without permission and no notice to clients. It took me some time to find another PM.  So she only managed our properties for under 60 days but still owes us money.

We'll file the legal paperwork for the bankruptcy but likely pennies on the dollar will result, if at all.  

Anyone in similar position?  I know it was pretty popular with Real Wealth Network pushing Strategy Properties in Detroit.  I understand Ali Boone has now partnered with Strategy Properties. IMHO, big mistake and will affect her reputation with her investors in the end just like it did RWN.  

We finally have our Detroit properties running smoothly.  Found a solid, no nonsense PM.  Big and expensive lesson learned.  

My husband and I went thru FPU over 20 years ago and learned good basic budgeting and money management skills which have benefited us greatly over the years.

Yes, we use credit cards for nearly every thing.  However, we get 3-5% cash back, never carry a balance and pay no interest or fees.   We pay cash for cars and keep them for as long as mechanically feasible. I drive a 13 year old Honda SUV which we keep up and still looks brand new. Everytime we considered a new car we'd think about that money being used to buy another rental.

Here's where DR has most influenced our real estate investing ... 

(1) DR's no debt is good debt principle.  We have been able to save and pay cash or 1031 in all but 3 properties.   (We bought 3 sf in FL 3 years ago and locked in 3.25%/30/year/no closing cost loans.  Pretty sure DR would not approve.)  We also have a mortgage on our primary home but we pay extra principal each month to excelerate the payoff.

We were so blessed during covid not having loans to service in areas where rent moratoriums were mandated.  I can't imagine the stress on investors when they had to keep paying loans, insurance, taxes, etc.  with no rent coming in.  What a nightmare!!

(2) DR has an online preferred list of professionals (RE agents, insurance, etc.).  I've done my market research, including identifying a good local property manager, and then engaged one of his preferred realtors to help me find properties.  Between the local PM and good agent they have identified good rental properties and we've had great ROIs. Yes, we are paying retail in those cases but we're also not being "sold" properties from a limited list a turnkey or other resource has.  Excellent results with his agents in Huntsville AL and Dayton OH. 

We have several SFs in Dayton.  Currently insured thru NREIG but their service has become very poor.  

Recommendations?

We have 9 SF/duplexes  in Hutchinson KS. Currently with NREIG but customer service has just become non existent, even worse, our CSA has a real attitude. Thankfully don't have much reason to interact with her.

I know all rates are going up so not just rate shopping, it's just time for a change.

Recommendations?

We are in the midst of a turn and our property manager RPM Midwest says they do not have a reliable vendor to refinish hardwood floors and I'm on my own to find one.  I live out of state, btw.  They'll be happy to coordinate with the vendor after I identify one.  ;-)

Recommendations anyone, please?

I recommend Tradewinds in Detroit.  We tried RPM but they were not staffed to respond effectively and found things continuously slipping through the cracks.

We are in 7 markets nationally and Detroit is the most anti-landlord municipality ever.  We've had 3 evictions and they've taken as long as 18 months to finally get the tenant removed. Between the legal fees and damage by tenants, it's ugly.  No recourse, as the tenant, even if you went to collection, can't pay.  Just being honest.

TIP: Your property manager has to have a best practice to have the tenant PROVE they have the utilities, especially water, in their name BEFORE they hand over keys.  On two SF properties, we had to pony up $8,600+$3,600 in water bill fees in addition to everything else because Strategy Properties and Autumn didn't do this. 

Background:  We have 4 Detroit properties and have lost tens of thousands of dollars as a consequence of buying them through Real Wealth Network's Detroit affiliate Strategy Properties. (RWN was not helpful to any of the investors during the Detroit debacle after talking with other investors I know. I had several direct conversations with RWN as well.  The only thing I saw change was RWN started to emphasize and expand its disclaimer during its webinars.)   Strategy Properties' quality in their turnkey renos is poor and we had a lot of delays as well as promises to complete something after closing which they never did.  When we bought them they were doing their own property management. Suddenly, we rec'd an email (no other communication) that Strategy Properties had 'assigned' all their PM work to Autumn Property Management effective immediately.  I knew Autumn from Strategy Properties, she placed the three tenants we ended up evicting.  I moved to immediately find another PM when they "assigned" us to Autumn Property Management.

I noticed that Ali Boone has now partnered with Strategy Properties and is promoting their turnkeys in Detroit. There are several videos/tours posted online in the last 30 days. She said she's aware of the property management issues they had a while ago but that they aren't doing PM anymore.  

Based on my experience owning four SF Detroit properties in super nice Detroit neighborhoods, and the experiences of others here on BP, my advice is to simply stay out of the City of Detroit proper. Look at some of the suburbs. We're in 7 other markets across the country and I can honestly say the City of Detroit is beyond a nightmare.  Inevitably you'll get a tenant who knows how to work the system and you'll be out a lot of money with no options. 

Ironically ... I was on uTube this weekend and watched a post by Ali Boone on Detroit.  Her new contact there is none other than Al Bazzy with Strategy Properties.  It blew my mind that Strategy Properties is out there with the same sales pitch and talking about the great work their rehab teams do. I could show you shocking pictures of that not being the case and they were always months late in delivering the final rehab.  He talked up the property manager they refer their buyers to.  [I'm assuming it's still Autumn Property Management.  Everyone knows that Autumn ran Strategy Properties in-house property management team, ProWay, before she started her own company and 30 days later we were all unceremoniously 'assigned' to her new company.  I think that's common knowledge, right?]

I have always followed Ali Boone, and learned a lot from her but this was an eye-opener.  We connected with Strategy Properties through Real Wealth Network.  I naively assumed if someone had an affiliate or preferred vendor they would do a better job of vetting them AND if things went wrong would proactively make things right.  Tough and very expensive lesson to learn.

Thank you!