might be dumping my entire RE portfolio

[97guns]

i had a very good property manager that i trusted 100%, this morning he suffered a massive heart attack and passed away this afternoon. now i need to make some decisions.... whether to find another property manager or liquidate everything, ive had the experience of using many property managers over the course of my RE investing, 5 others before this one and every one of them became totally untrustworthy over time, nickel and diming me to no end.

if i liquidate i will clear around 950K and would dump it all into trust deed loans that pay 11-13%, netting me around $114K a year, a nice jump in income from my current $66K through the rents. im undecided and have only given it a few hours thought but im leaning towards selling because im pretty sure an honest property manager does not exist.

[james.hendrickson]

97,

I am going to out on a limb here, but I recommend that you consider checking out the following posting

http://www.reluctantlandlord.net/80-questions-to-ask-your-property-manager/

It looks like its got some decent screening questions to ask if you do decide to hire another manager.

[VS_ozgirl]

Consider your next move carefully

Before doing anything speak to your accountant and get their tax advice. They will be able to give you a clearer picture of the tax side of things and could possibly give you some tips to save you some money. I work at an accounting firm (in Australia though, so we have a completely different tax system) and one of the things which makes my boss pull his hair out is when clients come in to tell him they have sold their assets (whether it is real estate or shares) and then ask what the tax is. His response at least half the time is "this is the tax payable but if you came to me beforehand I could have advised you to do this which would increase the cost of the asset and reduce the profit to the tune of $xxxx" - sometimes tens of thousands of dollars. Really consider your investment goals and whether liquidating is your best move; it is sad that your property manager has died but it shouldn't be the deciding factor in liquidating your portfolio.

[97guns]

even prior to his passing i had given thought to selling off a property or two and getting it into deed loans and now with this change of climate i am swaying more towards it.

[tripods68]

Sorry about your loss. It can be tough finding trustworthy manager again.

Don't you think it's knee-jerk reaction to dump all RE holding at once-after all your in hottest market in the country. Homes will continue to appreciate going forward.

[scfr]

I'm sorry to hear about your loss.

Does your decision need to be an "all or nothing" one? Is selling a couple properties, enough to bring the number down to what you cold manage on your own, an option?

[kork13]

Perhaps I'm being contrary, but why give up your real estate earnings? You clearly know what you like in and expect from a good property manager, so I would interview around trying to find another good one. They're a dime a dozen in most areas with a thriving rental market, so it's just a matter of finding one you like. Yes, it's a time suck screening property managers, but a worthwhile time expenditure, I think.

After all, you're the one who regularly proclaims the sweet gospel of real estate investment! It clearly provides you a healthy living income, so I (personally) would happily invest the time & energy into finding a new property manager with whom you can build a new working relationship. All respect (and my condolences) to your former property manager, but he surely was not irreplaceable. For all of the poor managers, there are still many very good ones.

My concern with your plan of doing trust deed loans is a single thought: "What kind of risks are you taking on to be earning 11%-13% returns?!?"

[JBinKC]

Tough decision- Taxes will kill you on the recapture but then again I think the RE market is at another major plateau.

[TexasHusker]

I am interested in hearing more about the deed loans concept ...

[97guns]

a deed loan is a loan given to a homeowner secured with the equity in the property, the pool of lenders names go onto the deed. if there is a default on the loan the property is sold, the 1st mortgage lender gets paid first, second, third and so on. there is some degree of risk, most noteably if the market turns and the borrowers equity vanishes due to market conditions.

my property managers wife says she will take over the duties and ill probably be going with her, she has this months rents already, im hoping it will be a seamless transition

[TexasHusker]

a deed loan is a loan given to a homeowner secured with the equity in the property, the pool of lenders names go onto the deed. if there is a default on the loan the property is sold, the 1st mortgage lender gets paid first, second, third and so on. there is some degree of risk, most noteably if the market turns and the borrowers equity vanishes due to market conditions.

my property managers wife says she will take over the duties and ill probably be going with her, she has this months rents already, im hoping it will be a seamless transition

What is the difference in a deed loan and a home equity loan?

[snafu]

It's lovely of you to give the recent widow a shot at managing your properties. I'm sure on top of the emotional stress of abruptly becoming a widow was the ghastly realization of financial reality.

[LivingAlmostLarge]

sounds like a plan to let the woman at least not lose her income asap.

[Koolmagicguy]

How much does the job pay? I'm looking for a new job and I'm willing to move.

[Singuy]

a deed loan is a loan given to a homeowner secured with the equity in the property, the pool of lenders names go onto the deed. if there is a default on the loan the property is sold, the 1st mortgage lender gets paid first, second, third and so on. there is some degree of risk, most noteably if the market turns and the borrowers equity vanishes due to market conditions.

my property managers wife says she will take over the duties and ill probably be going with her, she has this months rents already, im hoping it will be a seamless transition

Huh, the concept of deed loans sound exactly like crowdfunding realestate lending.