All Forum Posts by: Jared K.

This opens you up liability if your end buyer assignee decides to sue you for specific performance. Since you have a contract with your end buyer (assumption) they can go after you for not delivering title to them! Go after your seller for specific performance. Make them pay you for breach of contract.

Thank you for putting this out ... 

I am needing a virtual assistant back office support for my real estate property management business. I have hired and used remote VA and have great experience using one however, I'd like to have someone ideally bilingual (Spanish/English). They would also need to be strong with our property management software, AppFolio. They would need to make outbound calls and accept inbound calls as well. The companies that were shared above (PatLive) only handle inbound answering calls (but thank you for the reference!). Anyone else have any other suggestions or recommendations? Thank you!

Real estate syndication - we invite folks to invest with us all the time. I would also look into first trust deed notes. Low risk and 8-12% cash flow

Put your PO BOX. If you have a forwarding address for your old tenants then send to that address. If not send to the last known address (your property). If you get it back as undelivered then hold onto it unopened. Send an itemized list of all charges (exclude those associated with wear and tear). Don't need pictures unless or until you file small claims action.

Anyone know if CAM - Common Area Maintenance fees are included as gross income for purposes of calculating property management fees.  Stated differently, we specialize in residential property management but are getting into commercial properties to manage. If we are charging the owners 6% of gross rents collected for managing their commercial space, does this include CAM fees as part of calculating gross rents?  I'm thinking that it would since my company IS in fact collecting the CAM fees.  Just seeing what others are doing out there, thanks! 

@Matt Ward 

Cap Rates and Cash on Cash returns are different.  Our cash on cash returns are calculated not off of downpayment but based upon the money raised in our syndication.  

@Matt Ward Great question, totally depends. It really comes down to the performance of the property and what you are able to market/sell to your investors and what you're/they're comfortable with.  

8% is great for investors as a preferred return but what if the property only generates 5% cash flow?  Then as the sponsor, you're screwed!  

We have been very successful structuring our investments in the following manner:

- Investor returns are equal to the cash flow of the property distributed in accordance to the pro-rata shares invested by the members.  So for example, if the property generates an 8% cash on cash return, that is the cash flow distribution to our investors.  If it generates 5%, they get 5% on their money, so on ...

- Each investor gets their initial capital investment returned to them through a) cash flow b) refinance and/or c) profits from sale. 

- Any profits left over above and beyond the initial capital invested (and there always is), then profits are divided up 70% to the limited investor members and 30% to the managing members (sponsors).  

This is the model we started out with.  We have since expanded and have engaged in "waterfall" cash flow models and have adjusted our backend splits as well.  If you offer your investors a higher cash on cash return (through monthly or quarterly distributions), you can lower the backend split returns to them.  If the property has modest cash flow, you can increase the backend split. There are many ways to skin the cat.  Hope this helps!?  

Yes, AppFolio is $200 for the first 200 units, and fairly pricey.  However, the amount of money that software has made me has been invaluable.  It has automated my entire leasing process and much (not all) of my business.  Work order features are great too.  It really opened up a lot of my time to allow myself and my staff to focus on generating income in other ways.  I know in California the Apartment Owners Association has a course on using Quickbooks for Landlords.  I did that awhile back when I first started out. It got me by the first year of my business. Maybe this is the way to go?  Good luck. 

AppFolio. Definitely AppFolio.

Does anyone know of any local Los Angeles courses/classes on the "ins and outs" of LA City Zoning and Planning.  Looking to expand knowledge base around development projects in Los Angeles.  Covering such things as: entitlements, conversions, set backs, dedications, height restrictions, bonus density exceptions, etc...