The problem is that bathrooms are private rooms open to the public and that makes them attractive to bad actors.

Some of those complaints have merit and there are clearly bad actors in the space, but many of these situations involve projects that are simply delayed or underperforming, not fraudulent or mismanaged.This all converges on a simple point: it is critical to vet potential LPs before taking their money.

The posts are split almost evenly between aggrieved LPs, some with legitimate claims involving GP fraud or clearly bad actors, and LPs who are simply unsophisticated and unaware of what they actually invested in.

Consequently, a lot of Small Multifamily (SMF) owners—specifically in the 5-200 unit space—end up using standard 27.5-year depreciation and overpaying their taxes.I decided to launch a firm specifically to fix that problem for the "little guys" using tech to speed up the process and lower fees.I'm here to answer any questions about Bonus Depreciation, the Tax Cuts and Jobs Act, or general tax strategy for value-add deals.

You can die there as well. 

that not mentioning in the contract/anywhere else, at all, that they charge something for coordinating vendors - while, in fact, take ANY undisclosed compensation (and, incidentally, do not provide invoices as a matter of policy) - is compliant with TREC.It gets better: I recently had a local RE attorney, who allegedly deals with many major local PMs, claim to me that, even if there is no prior disclosure by the PM that the PM charges anything for dealing with vendors, as long as the PM tells the principal the total cost, and the principal agrees to it - before the vendor does the job - this is compliant with “annotated” (the lawyer’s stipulation) 62-12-312(b)(17).If you missed it: A local TN- and MS-licensed RE lawyer claims that no disclosure of the PM taking any cut is necessary - as long as the principal is told the job’s total ahead of time, and agrees.I have no idea where this lawyer happened to find any annotation like that for 62-12-312 - I did not, at least not in Westlaw at my law library.And this “industry standard” (attorney’s words) appears to be in serious conflict with the actual law, as far as my non-lawyer reading of it goes:“(b) The commission shall have the power to refuse a license for cause or to suspend or revoke a license where it has been obtained by false representation or by fraudulent act or conduct, or where a licensee, in performing or attempting to perform any of the acts mentioned herein, is found guilty of:(17) Paying or accepting, giving or charging any undisclosed commission, rebate, compensation or profit or expenditures for a principal or in violation of this chapter;…”Literally right there: “… accepting or charging any UNDISCLOSED commission, rebate, compensation or profit or expenditures for a principal.”But it may not end there:If you add to the above circumstances that the principal began to suspect this (undisclosed) practice and asked the PM whether it engages in up-charging/marking up vendor invoices - and the PM denied it - and they continued to do business as before after that denial… until the principal obtained evidence, which only then forced the PM to admit the practice, somewhere in there a “mere” TREC violation seemingly becomes: “An intentional deception or misrepresentation made by a person with the knowledge that the deception could result in some unauthorized benefit to himself or some other person…” Commonly known as fraud, a crime.But I am not a lawyer.

The investor for whom nothing is ever their fault and every bad outcome is blamed on a “bad actor.”That mindset is exactly why these investors put bad money after good chasing the weakest claims.

If anything, this weeds out the bad actors who make the whole industry look sketchy.Would love to hear your thoughts - if a client came to you with questions about duplicate line items, would you rather they ask upfront, or dispute the invoice after the work is done? 

This board is just the flips and wholetails we’re actively working on — the ones that come with rehab chaos, dumpsters, and me praying the market gods stay friendly.And before anyone from my team reads this — YES, you all are way more organized and technical than me.I’m basically a holiday elf in human form — balding, slightly disheveled, and working out of my “fancy office,” aka the dining room.But here’s the thing: this chaos works.It’s real.And it really shows what’s possible when you build long-term private lending relationships, stay consistent, and maybe sneak a candy cane or two while crunching numbers.So, this holiday season, as you deck the halls and untangle the lights, remember: success in real estate doesn’t have to be perfect.

However right or WRONG those actors are.