All Forum Posts by: Steve Sayler

Ben you make some very compelling points. Those are great ideas about the reviews. I have read the PM's contract, but I will certainly re-read it again.

Quote from @Russell Brazil:

So why do you think your tenant is telling the truth, 

..... What does the rent ledger show as to timing of rent payments?

The tenants contacted me directly and sent my photocopies of the receipts.  All rents were paid before the 1st of each month.  However the PM  (LSI) did not have a local office, but they had a payment plan via CVS Pharmacy where the tenant could pay cash at CVS, I know it sounds crazy.

Also,  as I questioned the PM, the ledger changed. The first ledger showed blank months, but when I asked them to verify again, all rents were paid on time.  Basically, it was incompetence, and lies to cover it up. 

Quote from @Theresa Harris:

I'd also tell the tenant who they tried to evict under false pretenses to leave a google review for the PM to warn others.

Thanks for the idea about doing reviews, Hmm, unfortunately the tenant is upper 70's and doesn't do much online,   Part of the problem was that the tenant wanted to pay cash for rent every month, but the PM wanted the monthly payments online,

Owner Termination - Cancellation Fee

Something you never hear about is HOW can an owner terminate a Prop Mgr!.  In my case I was fed up with lies and incompetence, and switched to another local Pro mgr company. but I am being hit with EXCESIVE cancelation fees.  Do I have a recourse?

the Prop mgmt contract - 

14.  ... In the event that such notice of non-renewal by Owner is received by Broker, Owner shall pay Company the Management Fees, rental commissions, and all other outstanding fees set forth in this Agreement for the length of the tenant lease (including any lease extensions or renewals) or the remainder of the term of this Agreement, whichever is the greater of the two. The cancellation fee will be calculated at the amount of the last full month Management Fee rate multiplied by the remaining number of months in the term or until expiration of the existing tenant’s lease, whichever is greater.

The background: I was using LSI Property Mgtm Corp to manage my 3 duplexes in Panama City FL.  It was going, OK, until, out of the blue they served an eviction  on an elderly tenant, without cause.  Although the Prop mgr claimed late payments, that was false. The tenants went to court, but the prop mgr failed to respond and failed to go to court. The tenants rightfully won.  The prop mgr refused to apologize to the tenants, and continued lies about late payments.   I found a better Prop mgmt company.  Upon termination of LSI, they are now charging me  CANCELLATION FEES which are equal to the regular monthly Prop Mgmt fees (8%)  for the remainder off EACH lease.  This amounts to thousands of dollars. I emailed and called LSI, complaining, but they stand by the cancelation fees.

Is there a Solution for me? - at this point -  to avoid the cancellation fee? 

thanks

Steve

hi All,

I am having serious problems with my current property Mgmt company in Panama City FL for my long term rental duplexes.  The city is a beach town, so I am finding a lot of vacation rental Mgmt companies and not enough that offer good long term services. 

Of course google is available, but after a 2 hr search I am not having much luck.

Can anyone offer recommendations?

Thanks

Steve

 

Frankly, I do not see anything in the description of the HR bills that specifies that the bills only apply to 'checkbook' LLCs, or Syndications. 

This seems pretty awful - -> example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA. IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.

In my case, I was frustrated with the big Mutual fund companies and the limited IRA investing options. Buying the Multi-family rental with my ROTH SDIRA would provide the benefits of real estate investing, as well as ROTH tax free earnings.

I have already contacted  my elected Reps  & Senators,  and because I live in a blue state, none of them care about the constituents concerns, its all about party line.

I was notified by my Self Directed IRA Custodian about the changes in the 3.5 trillion reconciliation package:

Dear Valued IRA Financial Client,

Your financial security is our priority and the relationship you have with IRA Financial is very important to us.

That’s why we want to make you aware that the House Ways & Means Committee has proposed changes to the laws governing individual retirement accounts (IRAs) as part of their $3.5 trillion reconciliation package.

These changes, if enacted into law, could have a direct negative impact on you and your ability to save for a secure retirement through a Self-Directed IRA.

How would the proposed legislation affect me?

Bill Section 138312: The proposed legislation would prohibit IRAs from holding privately-placed equity and debt securities and other investments that require the IRA owner to meet certain minimum financial, educational or licensing requirements. For example, the legislation would prohibit IRAs from holding unregistered investments that are offered to accredited investors, like equity or debt investments in small businesses or investments in private funds.

Bill Section 138314: The bill would also prohibit IRA owners from investing in (1) non-publicly traded entities in which the IRA owner and related entities (including the IRA itself) own more than a 10% interest or (2) any entity in which the IRA owner is an officer or director, regardless of ownership percentage. By way of example, single-member limited liability companies or any investment in an entity in which an individual is a director or officer could no longer be held in an IRA. IRAs holding any of the above investments would lose all of the tax advantages previously available to the IRA.

If the proposed legislation is enacted, you will no longer be able to purchase any of the above investment types in your IRA. Further, you will be required to dispose of any such investments that you currently hold in your IRA by no later than December 31, 2023, which could result in significant and previously unforeseen financial and tax consequences, including taxes and penalties associated with any assets that could not be sold and must be distributed from the IRA.

What can you do? Take Action Today!

Make your voice be heard. Contact your elected officials in the United States House of Representatives and Senate, and tell them:

• You oppose limitations on IRA investment choice (Sections 138312 and 138314 of the House reconciliation bill). These under-the-radar provisions have never been publicly vetted and will have unintended and adverse impacts on you and countless other Americans who wish to save for a secure retirement through Main Street investments.
  
• Specifically, the legislation:
  
  • negatively impacts your ability to save for a secure retirement by limiting your choice and ability to diversify your retirement savings outside of the stock market.
    
  • will likely cause you significant negative financial consequences by forcing you to sell existing IRA investments at a depressed price by a publicized date certain and may also cause significant negative tax consequences (including early distribution penalties) by forcing you to distribute from your IRA any investments that you are unable to sell.

You are also concerned that the legislation negatively impacts the ability of small businesses that employ everyday Americans to obtain the funding necessary to operate and grow their business and create jobs. The proposed legislation eliminates the ability of suitable investors to participate in private capital-raising transactions through.

QUESTION: I already own a multifamily property in my ROTH SDIRA. Does this new legistation direction affect me?

I am a new investor. I already have one duplex, with I bought the typical MLS listing with agent.I am not local, so working long distance was a challenge, but it worked out. I have a partial bad experience, because my realtor took videos and picture, but failed to completely point out all of the potential problem areas. I could go on..

But I'd like to shift gears. I have TWO deals in the works that I found on craigslist. **Don't cringe**.. Off-Market is off-market!. ..  Both deals by the same seller. Both are duplexes, where he wants to maximize his sale profits by eliminating the agent fees, selling the properties himself.   I have done some homework, and I think the deals are good and a great opportunity.  I want to protect my interests, and would like an agent's experience in the area  (again its 1000's of miles away).  However 2-3% of the sale, which would be added into MY closing costs,, *Gulp*..  It give me pains to imagine spending  $8-9000, especially for some advice, market reports, comps, producing a contract, arranging inspections, arranging appraisals, and the little stuff. 

Would I be better off getting a lawyer  (for $1500-2000)

I want to be fair and pay a reasonable amount for services rendered. But in this case I have done the leg work, I found the deal(s), I did the communications. 

There is a ton of articles on the pros and cons of Off-market, and how to find off-market real estate.   BUT ...  Is there a good tutorial on "Step by step, HOWTO complete the sale of Off-Market investment properties?" 

thanks

Steve

I am looking to expand to Pompano Beach, but I need help. I am an investor Seeking Real Estate team in Pompano Beach, FL, The team should include property mgmt, maintenance, and re-hab specialists.

thank you everyone for the advice. The part that bugs me is the HUD-1 document that was included in the closing, listing my closing totaling over $4500. My down payment and closing costs were submitted to the IRA custodian for payment. Shouldn't that be the final word?