NARPM Radio Balancing Risk and Control: Financial Strategies for Property Managers
Jun 18, 2025
In this engaging talk, Mohamed Hussein, CEO of Balanced Asset Solutions, shares his expertise in financial strategies for property managers. He discusses the importance of preventing overdrafts and managing large expenses effectively. Mohamed highlights the risks and rewards of internal controls like positive pay and emphasizes the need for specialized software to ensure financial integrity. He also provides practical tips for maintaining cash flow during evictions and tackling complex accounting challenges, blending insightful advice with personal anecdotes.
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Avoid Excessive Owner Bank Accounts
- Don't open a separate bank account for every owner to avoid excessive reconciliations.
- Instead, ensure proper process and controls to prevent commingling and overdrafts in shared accounts.
Prevent Negative Owner Balances
- Do not allow owner portfolios to go negative; this risks stealing from other owners.
- Have a process to manage reserves or ask owners to fund anticipated big expenses.
Negative Balance Audit Anecdote
- Pete Neubig allowed portfolio negative balances and later uncovered a $37,000 deficit owed to him.
- This required him to write a personal check to cover owner funds, stressing the importance of controls.
