All Forum Posts by: Michael Klinger

Ha! I think he's more interested in fast movements....

22,23,24 for sure. Maybe up to Friday the 25th.

Hi,

I am coming to town to check in on my multi-family properties next week. I have 64 units -- 42 in Mount Washington and 22 in Mount Airy.  All of it is locally managed.  I don't really know any other investors or liked mined folks in Cincinnati and I think its time for me to do so. If there is any interest in gathering a small group, maybe Tues, Wed, or Thurs evening to talk shop? If anyone is interested, let me know. You can PM me. Thanks.  -Mike

I am moving towards moving away for a property management company and self managing/moving to an in-house management model on part of my Cincinnati portfolio. 

The initial offer is one property that contains 22 units, in the Mount Airy area of Cincinnati. More to come if the transition is positive.  I would be looking for someone that could handle all of the local "boots on the ground" matters, while I handle all the bills, books, and other matters remotely.

The division of labor is open to discussion based skill set and what we work out.  At a minimum, this person would help with any rent collections that aren't automated, delinquencies, oversee maintenance, repairs, turnover, showings, etc. I have a growing list of providers for basic property needs, but I am looking to expand my Rolodex and would welcome more local resources.

Being that this is one property, this would a part time job to prove the concept, but can soon become more is things go well.

Please PM here me to start a dialogue. Or email me at [email protected]. Please include a resume.

Thanks everyone. Good input

The MSA is 2million+

To answer the 2 manager questions:

Lame is connected to the selling agent on the smallest of the three properties I bought at the same time. Lame also agreed to do the largest of the three properties (which is down the street) and they have 42 of the units. Lame was going to do the third property which is another 22 units, but it is "outside of their area" so after giving me a soft "yes" on the third property, Lame ultimately declined on the third one. And so I recruited Lamer for those 22 units, more aligned to that area and that kind of property. And these were the companies that seemed good, compared to others who seemed bad.

This was after I contacted a number of companies and had discussions with. SHOCKINGLY, two companies never even followed through after their request to send them rent rolls and other details about all 64 units and they never got as far as a rate quote. A couple of others just didn't sound right or otherwise I didn't like their phone presence or response time and such. Lame and Lamer were the good one's!

I am in month 5 into owning 64 units over three properties in the same city, but split between 2 different property management "companies."

I am out of state and sold office building on a 1031 exchange. Otherwise new to multi-family. In addition to trying to run this these properties with local management. As a side note, I also self manage a small business remotely (not real estate).

To say the least I am frustrated with property management company 1: "lame" and company 2: "lamer." 

"Lame" handles matters at the properties okay, but their effort on Appfolio drives me bonkers with basic bookkeeping errors that go in circles. There responsiveness to me stinks. My "manager" recently took 14 days to reply to a email with 5 bullet points that needed attention. To this day. Only one of those items has been addressed. If I hear one more time "I'll try to call you but I'm closing 8 properties today, so it's going to be tough" I'm going to punch a hole through the wall.

"Lamer" is even lamer. As my communication has become increasingly heated, main contact swears they are working their "A**" off for me. But aside from what I perceive as their incompetence in almost every aspect, they are also an accounting disaster zone. They use Rentmanager and royally fowl up all the time and I have to show them all the mistakes. I mean how can you F-up only 30 book entries a month? Plus they really stink at the rest of it too. And they don't answer their phone or emails with any regularity. Makes me wonder how the tenants feel. Did I mention they stink at their jobs? I have to say, they are pretty lame, too.

Also -- I haven't received any money yet on any of it as it's been a rough ride in the beginning. I am not pegging this on management, but its not helping.

I need a change. Fast. I know I can get another company or two, but I am concerned about just ending up with more of the same, with a lot of disruption.

Here's what I'm thinking... I can do this better myself. Until these units stabilize, I can enter my own books and bypass ALL of the bookkeeping nonsense. I'm happy to take a front line position on anything possible. 

All I need is a local assistant to be my boots on the ground that I can locate and trust to handle thing there.

As I said,  I manage an unrelated business in another state remotely, so remote management is not new to me. 

Thoughts?

@Brian Burke  -- Thanks. It's a puzzle that should induce a coma, but I actually find the thought exercise of it all... stimulating.

@Brian Burke -- Good thoughts.

I do have an obscure reason why I might need to go the FED ID route on one property and if so, then I will do all of them that way. Of course, if I can eliminate complexity without creating potential problems, that is appealing too.

I've pieced a some additional input that I have received today and thought about:

1.) CPA -- said check back to Q.I. and get their input 2.) Also said check with closing Attorney, maybe Fed ID#s were issued and it got past me (that I doubt , but sure, I will call).

2. Q.I. -- regarding issue as it relates to integrity of 1031 -- said indifferent about running business through parent or individual LLC, but assumes that the subsidiary LLCs are single member. Which they are, so disregarded. They may have been momentarily not during the transaction, I need to look into that detail.

3.) CPA pointed out that while it adds complexity to banking and bookkeeping, running the LLCs as separate businesses and separate banking bolsters their position as LLC's in the event of actual Liability issues that would be better contained in on LLC. Really good point. Hmmmm.

4.) So if it makes sense to run the properties on different bank accounts and books if for nothing other than point 3 above, then they are going to need Fed ID for Bank accounts.

I wasn't sure which forum I might get an answer on, but since this relates to Commercial/Apartments. As its tax season, so hard to get the attention of an accountant on this one right this second. So here goes:

For "good reasons" and as part of a 1031 exchange, my California LLC acquired three different Ohio apartment properties in January. And for "good reasons" that would likely to put the forum asleep, one new Ohio LLC was formed to contain each of the new properties for a total of three new LLCs that are 100 percent owned subsidiaries of the parent California LLC, which files federally as a 2 person partnership with an established Fed ID #.

All things otherwise being equal, the LLC's were only created to acquire the properties a certain way not particularly to run a business through. For simplicity and so far in this early stage, all three of the properties', bills, cash flow, etc. for all of this is flowing through the parent LLC.

So... Do my Ohio LLC's under the main LLC "have to" have a Fed ID # if they are only there to contain ownership of the property?