Things were going bad from day one however we wouldn't be aware of it until late 2017.It started when 1 of our properties got burned and when started an insurance claim learned that the policy the management company has purchased for us wasn't covering the cost of property purchase and their savings of $20/month cost us loss of thousands of dollars.That was the start of our awakening and we started checking all that was taking place and we have questioned all the different bills and reports that were provided to us, during that we learned that 2nd of our properties was abounded by the tenant and the months late rent payment wasn't questioned by the management company, not only that but thieves had broken in to steal all appliances and vanities, created damage and leave the property completey vandalized, a squatter had taken over the property and we had to go thru eviction process.Needless to say we have dropped Mousa and his so called management team (Omar and Wanda) and hired another company to take over and conduct a full due diligence on our properties which helped us to find out that on a 3rd property the management company had failed to fill out correct paper work and the tenant was not paying her utility bills for months and that mistake of paper work forced us to settle thousand of dollars past due bills with the city, that's on top of the fact the tenant was way past due on her rent, this property was so badly maintained despite the fact we have paid thousands of dollars to Mousa and his team for various repairs they have reported and invoiced for.As you can imagine the poor management of this company had caused us nothing but losses that are at this point estimated in tens of thousands of dollars.It is clearly our responsibility of not checking this company in details before engaging in business with them, however it is this company lack of responsibility and management that caused our losses.Be aware and check them thoroughly before engaging

Accordingly, Tenant shall be responsible for twenty-five percent (25%) of the total monthly gas and electric bills for the property, regardless of actual usage.Billing and Payment: Landlord or Landlord’s designated billing agent shall issue a monthly utility invoice to Tenant for their share of the gas and electric charges.

For months, I couldn't even figure out where the invoice locator was on the dashboard.

Timeline and Summary of Real Estate Experience with Altus IG Real Estate LLC / Altus Investment Group and Kevin DuganInitial Introduction (Approx. 7 Years Ago)My daughter and I attended a real estate expo in Los Angeles.We reconnected with my daughter's former schoolmate, who was active in real estate management and construction in Chicago.He introduced us to his company, Altus IG Real Estate LLC (also known as Altus Investment Group), managed by Kevin Dugan.First Property PurchaseWe purchased our first rental property.Kevin Dugan personally inspected the property and estimated renovations at \$30,000 (verbal estimate only).Over six months, we were billed \$59,000 in renovation costs.After delays and several emails, the property was finally rented.The first year yielded a 12% CAP rate with no missed rent payments.First Private LoanEncouraged by the initial success, my daughter convinced me to provide a private loan to Kevin.After one year, Kevin repaid the loan in full.Second Property & Second LoanWe purchased a second rental property and extended another loan to Kevin.Renovation costs escalated to \$75,000 without an itemized estimate.Escalation of IssuesRental income became inconsistent.We received invoices for unexpected expenses (e.g., cleaning and utilities that tenants were supposed to cover).Communication with the management team deteriorated.Tax documents were incorrect and required significant effort to amend.We began experiencing financial losses.Conclusion and Legal ActionWe sold both properties in Chicago, to halt further losses.Kevin stopped repaying the second loan—interest payments ceased completely.Multiple outreach attempts via phone, text, and email have been ignored.We are currently seeking legal counsel to recover the unpaid loan.The loan includes a personal guarantee from Kevin Dugan.Public WarningKevin Dugan presents himself as a real estate investment expert on Instagram.In our experience, his business practices were unethical and unsustainable—seemingly using new investments to pay off old debts ("robbing Peter to pay Paul").

Changing the details of the project, not paying promptly when invoiced, micromanaging, etc....Good customers / good people attract good Contractors....

They don’t provide any invoices for expenses and hold you at gunpoint so to speak.

In addition, creating invoices is a breeze also and the ability to open several different checking accounts (such as one for each property) is also easy. 

The transaction to pay the renovation guy worked fine (I provided an invoice from him to Plastiq).As Kerry Noble said above, they do seem to have "tightened up" their terms.

I know you mentioned to use the LLC/lien method, which I’ll more than likely be using, (and my 2nd question IS geared towards that method) but is it still possible to use the “Buy cash, delayed financing method” here: buy/purchase a SF with “cash” (private/hard money lending to my LLC), include the repairs on the HUD (contractor invoice) and recapture the total purchase plus repairs with no seasoning, provided they meet 75% LTV of ARV?

For rehab, if you’re not flying in, make sure you’ve got a GC who’s comfortable providing updates with video, invoices, and timelines — and consider hiring a local boots-on-the-ground person just to do walkthroughs and keep contractors accountable.