All Forum Posts by: Rondi Frisch

Welcome to the Sunshine State, if only virtually. I'm a PM and investor/wholesaler in Tampa Bay. Just putting together a new team, so I'd love to add you to my buyers list as we ramp up. I can set you up with MLS alerts at that time too. I will stay in touch!

When checking your management agreement also do some due diligence on the add-on fees if any. Some management companies  markup repair bills or charge an additional fee for making repair arrangements. Money can leak out in all sorts of places if you aren't clear on how the agreement works.

Here's one that most people miss....

The IRS requires you to have a DOOR on your home office in order to expense the proportionate amount of your household operational expenses against your business.  And, be careful about having a bed in there too...ie, don't use the guest room as your home office unless you can remove the bed before the auditor shows up at your door--they never do surprise audits.  And, they are so understaffed that the chance of an audit is pretty slim, but having home office expenses on Sch C of your 1040 return does bump you up the list in the 'red flag' department.  

Consult your CPA as you are setting up your business so that you can be sure to take advantage of all of your start up/organizing costs (including the cost of your licensing course and exam--even though it happened a year ago!!!).    

As a former Community Association Manager (LCAM, I still have an active license, I just don't do it any more) in FL, I second every point that Rick C. made! It all comes down to the HOA, how it is managed, and their financials--especially look at the reserve analysis and the balance sheet (it is public record, so call up the manager and ask for it before making an offer--it should be part of your inspection routine with HOA's and COA's). Talking to the neighbors is GREAT advice to find out about the board of directors and scuttlebutt about the enforcement of the covenants. It there is any concern about under funding of the reserves or talk of a special assessment to add something big to the common elements (like a pool or clubhouse)...run, Forest, run!

I'm now a PM and have a couple of investors who have townhomes and they are very happy with the management of the complex--it doesn't hurt that one of the largest investors in the community is also the on-site manager, so he is really looking out to protect his own investment and in turn is protecting those of my clients.  So, it is really a case by case analysis--it's all about the numbers.

Great plan! There are so many sub-par managers out there it amazes me that they can get clients at all.  Double check SC laws regarding licensing and working relationships of managers.  I'm a PM / Lic Real Estate Sales Assoc in FL and I have to work under a broker (I happen to work for a PM company with a fabulous broker/manager, and I'm learning SOOOO much).  There are many flat fee brokers not in PM that will take you under their license to do management, just understand your State requirements before you do something that could jeopardize your your future goals by inadvertently getting slapped on the wrist or fined by your licensing body.  In FL practicing 'real estate' without a license is a 3rd degree felony with up to a $5K fine...kinda scary!

I'm in your boat regarding the W-2 issue which is why I'm working my way up in the PM world while investing on the side.  I have an amazing credit score, but until this spring I worked as an independent contractor in another industry and I've had 'stated income' for 10+ years.  Before the crash I could blink and a big bank would lend me money...not so simple any more.