Kim worked part time at church doing the books while raising kids. Ray was a project superintendent and a great carpenter. When the kids started to get older Ray and Kim decided to buy some rental income properties as part of their retirement plan. Owning and operating the buildings was very manageable for Kim and Ray because she could do all the bookkeeping and he could do the maintenance and repair. Unfortunately, life had other plans for Ray as his health started to deteriorate rapidly. It soon became stressful and difficult to handle all the maintenance, showings, and other ownership hassles. We were able to come in and purchase the properties which relieved Ray and Kim of the responsibility and liability of owning the buildings and renting them out, and at the same time allowing their equity to make a monthly cash flow for them.
Grant owns a success business in Laguna Beach California. After many good years of business, Grant and Marlene decided to buy an apartment building because they could get a better return on their money. Grant and Marlene chose to buy a beautiful apartment building in Spokane, Washington with city views. At first, everything went great. The building was in good condition, had very low vacancy, and property management was in place. Unfortunately, with Grant living in California, the property manager eventually took advantage of the fact he was out of town. After numerous questionable expenses, they fired the property manager and got a new one. Because of poor management, the deferred maintenance piled up. The new management company did okay for a while, but the deferred maintenance and turnover in units eventually eroded the manager’s ability to attract quality, long-term tenants. Grant and Marlene felt forced to trust the new manager and started putting more money into the building. With poor management performance, vacancy went up significantly and the quality level of tenants went down. Grant tried to list the building with a broker and sell, but the overall condition of the building and the tenant base had dropped quickly over the last few years. Railings and steps were presenting liability issues. We were able to purchase the apartment building as-is and put the down payment in cash they needed now on a property that would not have qualified for conventional bank financing.
Grant and Marlene V.