All Forum Posts by: Justin R.

@Chris Seveney I hope you are wrong

@Diana Tran Great questions and awesome you are starting to make some moves.

I had a full time career but started purchasing homes out of state. At one time I had portfolios in 6 different states, which was too much for me.

I scaled back to my favorite 4 states to invest and started working on efficiencies.

I personally see the property manager as the “Hub” of each region. They are the only member of your team on the ground that doesn’t earn their living off of transactions. This is and should be a trusted relationship.

I’m not saying all Agents, contractors, brokers, etc are not to be trusted; but understand their relationship to your money. Your property manager is the only one that will tell you the truth, “No I won’t manage that property” and have to put their money where their month is when it comes to how much money you can collect for rent, clientele, area, etc.

This is an ongoing relationship, and a good manager can refer you to other contacts.

Ask for referrals. Be quick fire and slow to hire.

Meet them face to face. Personally a handshake still means a lot to me, and it will to them as well. Respect their time. Verbalize your own expectations. Don’t look at only their managers fee, ask what the average client pays in total fees (monthly, lease up, extensions, etc) as a percentage of rent collected. Made occasional visits so everyone knows you are present.

Beat of luck!

 Yes thanks for your input. I understand the importance that why I am going to start having my PMs give me this monthly. My question is regarding how investors are obtaining their vacancy rate from their PMs. None of my PMs send a monthly vacancy rate, but some have the leases I a review in their portal. I am playing with the idea of asking them to create a monthly vacancy rate for my properties as part of THEIR job. 

Cheers

I have several properties throughout a handful of states, all professionally managed. I usually glance as the vacancies but don't actually create KPIs for this metric.  Of course all 5 managers use different software and portals, each with their own style of reports. 

Im looking for ideas from other investors that are requesting Vacancy rates from their property manager. I just don't see me sifting through leases and figuring out move in/out dates as a good use of my time.

Perhaps I will just send an email to each PM requesting the current vacancy rate,  and their associated units along with the rest of my monthly reports.

Thanks to anyone that wants to share their experience in this tracking.

Cheers.

Im still using Royal Legal Services and have been for approximately 7 years. I am happy with their asset protection plan, services and cost savings compared to a typical LLC strategy (I am in CA.)

The upfront costs are pricey to set up the DST, but they are also creating the land trusts, and adding everything to your entire estate plan. Once you are setup though it is nice as there is no franchise filing fee.

Yea you aren't getting the pleasure of walking into an office, but they are responsive and happy to help quickly through email. One of my favorite aspects is the $49 a month "Piece of Mind" package. It's like having an attorney in your back pocket for any legal questions, concerns, and advice.

@Gino Barbaro Really??

"Thank you so much for a 15-20% IRR when 3/4 of that is done by inflation, and the remainder from cap rate compression "

Also “Thank you for losing 100% of our over leveraged capital!”

That’s not how it works man. An operator HAS to be a good steward of their investors money ALL the time.

@Gustavo Nascimento I hired one a few years back that was active on BP. My taxes are fairly detailed and comprehensive, definitely not cheap.

When I wouldn’t get a response back, yet they were responding quickly to posts here in BP, I had to cut my ties.

Best to you

@J Shoe I will start by saying consult with a personal attorney and CPA (and have them work together.)

Typically people buy in an LLC just to keep their name off the record and for asset protection and operation agreements.

As a sole investor a lot of people will buy in their personal name so they can more easily obtain quality financing, and then move the asset into the LLC.

A lot of people of California use trusts (DSTs) to hold the asset, so they are not contributing to the problem of over taxation in CA, as CA has a franchise filing fee of $800 every year for each LLC.

Just some things to think about, but find the professionals that can tailor a system for you personally.

Cheers

Exactly @Scott Trench! Im fine with the waterfall, if an operator hits that, they deserve it. The fees are under the table and ridiculous. Kinda reminds me of the property managers that charge a PM fee even during vacancy. 

 I just cannot agree with you and a few others on here. Yes, like any thing there are good and bad players. When an LP does research, and invest with a credible operator, there is a level of trust because they are investing in the operator, not the deal. I firmly believe it is the operators job to be a good steward with their LPs money.

I fully believe in personal accountability. I just think saying that someone knows the risks, so its kinda OK to lose their capital, doesn't shine the light at the operational errors. This is like saying "they understood the risk of driving a vehicle" when someone gets taken out by a drunk driver. Yes you can understand the risk, but the misfortune shouldn't have happened. 

I have a few companies which I am 100% manager and partial equity. I have done, and will continue to treat my investors capital like gold, because they trusted me with their resources.

This isn't the markets fault, this isn't the LPs fault, this is the operators lack of planning and foresight. I dont personally know Ashcroft, and they may be good group of people. I just hope they hold themselves accountable, communicate clearly to their investors, and do the best they can do in order to minimize losses.  

Wishing everyone the best

Cheers!