Fixing Property Management Issues

My wife and I spent Sunday morning scrubbing one of our multifamily units in preparation for a showing. After realizing the unit had no electricity, we found stains on the wall, nasty gunk in the sink and dead roaches on the floor, and even a few in the refrigerator. It was gross. It's the exact reason investors decide to hire property managers. What’s worse is we actually have property management in place at that property. So why in the world were we showing the unit and cleaning up extermination remains instead of the property management company? Well, it certainly wasn’t to hold a final farewell for those creepy crawlers. We were only planning on showing the unit to renters, but we found

How to Investigate Utility Expenses

Trust, but verify. When it comes to due diligence on a multifamily acquisition, you can drop the trust and solely focus on verifying the information you’ve received. On every deal we’ve done, we’ve found financial “inconsistencies” during the due diligence phase. Verifying and projecting future income is a fairly straightforward process, but doing it for the expenses, including utilities, always seem to take a little more work. When we purchased our first multifamily property, the seller only provided written confirmation of water expenses, citing the tenants paid for gas and electric. We confirmed that the tenants paid for those utilities, but stopped short of asking who pays for common are

Why You Shouldn't Ask for Referrals

Recently, I sat down with my financial advisor for our annual check-in. I’ve been with him for about 3 ½ years so we know the ritual. We talk about the family, catch up on current events, review my portfolio, and then just before we wrap, he makes the ask. I dread the ask. The ask is a common business courtesy – especially in financial services. At the end of each meeting with my financial advisor, he reminds me that his business is driven by referrals and asks me to refer a few people in my circle. However, his ask is not the typical, “If you know someone who might be interested, please let me know.” He literally pulls up my LinkedIn profile and will ask, “What about Kevin? You worked with