All Forum Posts by: Robert Gilstrap

Totally agree with David here. Owning it is what puts you at risk. Anybody who thinks having lots of insurance is a protection hasn't been investing very long or doesn't understand how lawsuits or insurance works. Having property owned by a trust with the underlying beneficiary being an LLC or other type legal entity provides you with the best combination of privacy (from the trust) and legal protection (from the entity). You can make things as elaborate as you need depending on your risk tolerance. I can also attest that you will likely never have a due on sale called and people who say that happens you should be asking them who do they know personally that it has happened to. The answer will most likely be "I don't personally but I heard at a seminar..." 

There are so many benefits to trusts that I have a hard time understanding why anyone would not use them.  They circumvent probate, are not subject to partition, incredible privacy, ease of transfer, judgements against the beneficiary don't attach to the property, transparent for tax purposes, most lawyers have no clue how to deal with trusts and the list goes on...

Banks collect money on loans, as long as you don't stop paying the payments the bank could care less who is making the payments.

I'm free next Friday for Lunch just see my contact info in my profile and give me a shout to arrange.

Clarke,

It's a great day when someone realizes their 9-5 is never going to give them long term financial security!  I'm in Kennesaw as well. If you ever need assistance give me a shout. 

Enzo,

You can expect to have inspections but if you aren't specifically discussing the specifics with the PM about time frames, cost, etc. then you will continue to be disappointed. A big secret in management is they all say they "inspect" but few actually do it. 

Most companies consider an inspection when they drive by the property (which they also hardly ever do) or when a maintenance tech is onsite for repairs. If you expect a real inspection then be prepared to pay for it. I can't imagine how thorough of a job they would even do for $75 but I guess that's better than what you've been getting. Inspections should be accompanied by lots of photographs so don't take peoples word that one was completed.

I would be more worried about why there was no security deposit (bond) like you mentioned above? What professional does that?

Lastly, (and I'm not defending the PM) but just as a point of reference; It does sound like the PM wasn't doing their job but that being said lets look at the big picture behind your complaint. The issue is tenant damage. So pretend that they did do the inspections and they were good or bad. How does that prevent the damage that occurred and the associated expense? The reality is that it doesn't. They could have inspected 100 times but you still could have damage at move out. 

What's so funny is if you read the HUB ruling you find that all felons are to be given a mile wide variance EXCEPT if you were convicted of manufacture/distribution of drugs. Apparently drug dealers can never be redeemed in HUD's duplicitous and warped view of reality.

@Jay C, You should fight back hard with the idiots elected to local government and work to have them removed every time a ridiculous proposal concerning rentals is brought up. Alas, you live in a left leaning state so you will be fighting an uphill battle.

Don't you just love uninformed comments like "the PM should have their own insurance"?

Every property manager on Earth (if they know what they are doing) would require you to add them as additional insured. This is really meant to protect you as well. When a lawsuit is filed the attorney is going to sue everybody; the owner, the PM, etc.  If the PM is listed as additional insured then the insurance company must defend both of you in court on the liability claim. If you didn't have that in place what's going to happen? Well your PM will come to you seeking coverage for his defense expenses because I can assure you that in your mgmt agreement you have agreed to indemnify the PM against any claims. It costs you nothing to add an additional insured and you should absolutely do it.

In my management agreement any code violations or repairs mandated by a housing inspection have implicit authority to be made. Perhaps your agreement is similar but apart from that when you mention these "enormous" bills and inflated charges you previously only mentioned $500 being owed. If all you're talking about is $500 you need to pick up the phone and negotiate or move on down the road. It's not worth the time, effort or mental energy. If you feel you were taken advantage of give them proper reviews online to that end. 

They do not have to go to court to obtain a judgement if they are filing a mechanics lien which is what it sounds like you are describing. Obviously there is a process to dispute this and there are many rules about how they must be filed in each state. Pickup the phone and negotiate to reach a settlement. 

These guys could be total crooks but most of the time the PM is just trying to get money back they advanced an owner for a repair. 

Tyler,

I'm in Kennesaw right off Shiloh Rd. Would love to meet up and connect. I've been in the game for 20+ years and had some success. Happy to share or assist in any way.

** Not giving legal advice **

Holding any asset and especially real estate in your personal name puts a big fat bullseye on your back. NEVER would I EVER own ANYTHING in my personal name. 

Having a separate LLC for a management co. may help if you have liability in your duties as manager but the main liability is asset ownership. Either transfer to an LLC or even better to a trust with LLC as beneficiary and don't worry about due on sale clause bc it will never happen.