patrick.net

propmgrjay says

find a realtor/broker you trust to do it for you

Huh?

I disagree, I think people should do there own research and try selling there home themselves. These people were defrauded because they believed that they have little involvement in selling there own home. If they did there research this would have not happened. With all the information out there on the internet you can do it pretty easily now days. Most of the real estate agents are as bright as a 10 Watt light bulb. 3%-6% off the top is too much for some one to take. Real estate agents are a dying breed just like car salesmen are too. This is because the internet will give you a great deal with very little haggling when you buy a car. Eventually a buyer will summit an offer by email on a home and the seller will review it and counter.

propmgrjay says

find a realtor/broker you trust to do it for you

Find a thief I trust? Is that possible?

ptiemann says

I guess I am a fool who takes a personal check for security deposit.

If a landlord insisted on a cashier's check, I'd say, "You don't understand. I don't want to buy the apartment, I just want to rent it."

Mr B says

These people were defrauded because they believed that they have little involvement in selling there own home.

If you had read the article, you would have known these people were not selling their home at all. So how can you say how they could have prevented it?

ptiemann says

Unlike OPs blog entry recommends, I won't insist on a certified funds. I guess I am a fool who takes a personal check for security deposit.

Well good luck with that. I meant that, seriously. You can do that, and you may not get burned... especially if you never manage more than a few units at a time... You may never get burned. But when you do that you're taking a big risk that could cost you thousands. That's one of those situations like when you were a kid and you touched the hot oven because you didn't take your parents advice when they warned you that you may get burned... You'll only get burned like that once, then after that you'll know they were telling you the truth.

ptiemann says

I think he was talking about the security deposit, not regular payments.

I collect all funds prior to the resident taking possession in guaranteed funds. It's just smart business to do that. Once the resident takes possession, I accept personal checks no problem, until one doesn't clear.

If you allow a resident to take possession before paying with guaranteed funds, you run the risk of dealing with something like what the property owners in the article are dealing with. When a resident has paid the first rent and security deposit in advance before taking possession (in guaranteed funds ofcourse), they have an incentive to continue making their rent payments (even though that incentive diminishes a little each month thereafter).

ptiemann says

the blog entry uses fear-mongering to promote professional property management services

It's not fear mongering, it's sharing information, and I make it quite clear on the weblog that I'm not soliciting any business or anything like that. I enjoy sharing information with people because I hate seeing people victimized like that, and I also enjoy reading about and sharing information about real estate, which is why I read/post on Patrick.net.

It doesn't matter if you live in Ukiah, CA, or if you live in El Centro, CA, or anywhere in between, that info affects you if you rent residential real property to tenants.