Clear procedures here help prevent surprises later on.Also, consider asking for a sample management agreement and comparing it with a few others.

While I certainly understand the need for a company to do an audit, particularly for the REIT, I am not sure why that would slow down or prevent rent moneys being paid for rent on joint ventures.

Is it more effective to implement cost seg on new construction vs. existing?

Hi all, I have a question regarding entity compliance for big CRE operators / managers.So I've been learning a lot about CRE over the past year, and I read somewhere that holding each of your properties in an LLC prevents one damages judgement against one property from wiping out your entire portfolio.

Preventing future problems. 

It has been a topic of discussion in a few Phily groups but not clear what actions are being taken to prevent it.

I self-manage a small portfolio and the hardest part of preventative maintenance hasn’t been remembering what to do — it’s coordinating people.Specifically:Vendors operate on schedules, tenants operate on availabilityRoutine servicing (filters, HVAC, inspections) easily slips when no one “owns” the coordinationVendor info, service dates, and unit details end up scatteredCalendars exist, but they don’t reflect what’s actually happening at the unit levelI ended up building a tool for myself that centralizes:Properties and unitsVendors and the services they provideEquipment tied to each unitA shared maintenance calendar that reflects routine servicing, not just repairsIt’s essentially finished, and before rolling it out further I’m looking for a few landlords who already care about preventative maintenance to pressure-test the workflow:Does this actually reduce back-and-forth?

Sure, you can be comfortable with the strategy itself and its implementation, but we stress the importance of creating a DEFENSIBLE strategy in the event of an IRS audit, allowing you to KEEP the deductions you received and ultimately providing you with confidence when your return is filed.Also, the more detailed your time log is, the easier it is for a tax advisor to review and point out what hours will stick when an IRS agent takes a look at your log.Things you can consider to add to strengthen your time log: Screenshots of time spent on calls with contractors/cleaners/etc.Pictures of work you are completing (i.e. painting)etcChris Tile, CPA

Then you close on the loan after a nightmare month of back and forth of docs, emails, spreadsheets, loan terms...you get the project under way and now you have to front the contractor another 10k - 20k to get started cause the rehab money is locked up until work starts getting done.Then you deal with the draw process which totally chokes the rehab process and prevents the GC to really get a rhythm of work going. 

They focus only on what the property is producing today, which limits their buying pool and prevents them from taking action.With long-term buy-and-hold investing, you have to think differently.