All Forum Posts by: JT Stewart

Thank you for the replies - 

As Steve pointed out, I actually won't be able to manage these for him unless I have an equity stake in the properties. 

You're also not allowed to have P.O.A. assigned to you so that you can circumvent the law and manage on the behalf of someone else. If you look in the regulations, it explicitly prohibits that. (§ 35.202) 

Really, it looks like there's no way around it: you have to be a licensed broker or own the property in order to manage it.

As Bart suggested, I could start transitioning the portfolio over to myself, BUT, he wants the properties to go to his daughter (My mother's cousin) when he passes. 

I'll have to do some research on the properties and the situation as a whole before offering to buy into them, if he still wants me to manage the properties.

Thank you for the advice, it's given me a lot to think about. 

Hello all,

My great uncle approached me a few days ago about managing his rental properties and I’m not really sure if I want to get involved. He’s approaching his 83rd birthday and can’t take care of them at this point.

He owns 7 single-family residential homes. I’m not sure what kind of financing he used to purchase the homes, but it’s entirely possible that they are paid off as he’s had them for close to 40 years.

The primary obstacle at this point is that he’s a horrible record keeper. He has no idea where he put any of the important documents (Deeds, insurance policies, etc.) and he also doesn’t have any systems set up at this point. All of his revenue and expenses are hitting his personal checking account. None of his tenants have signed leases so far as I’m aware.

Some background:

I live in Northwestern Pennsylvania

I’m a CPA working in public accounting

I’m 26 and I’ve flipped two houses at this point. I have a varied skillset and am quite handy.

I feel like I’m ahead of most that are new to this arena, but I’m still nervous of the idea of walking into something that’s so unorganized.

Questions:

• What should my first step be?
  • My first inclination would be to get copies of the deeds, insurance policies and determine the financing status of all the homes.
  • He also needs to set up a separate bank account and I'll probably end up forming an LLC for him.
• What programs/tools should I be using to keep track of everything?
  • If you were starting out fresh, what would be your ideal setup?

Summary:

My uncle has 7 rentals and has done a shoddy job of record keeping. I’m completely new to this and really have no idea where to start. Please provide advice, systems or general guidance.