Multi-Family Property Out of State Owner
The property had no cash flow and could not pay its creditors. The property collected a charge for water consumed by its tenants on the RUBS system. These collections amounted to over $6,000 per month. Because there was no cash in the bank, the management company at the time did not pay the company managing the RUBS.
This company was charging about $80 per month for its services. After not being paid for a month, the company stopped sending out invoices to tenants, so that in a period of four months, a property starved for cash had an additional cash shortfall of over $20,000. The management company was not prepared to lay out $240 of its own funds to protect its owner. But the management made sure that it paid itself its management fees each month.
After taking over, Protea paid the RUBS company everything owed to it and later repaid itself out of incoming revenue.