All Forum Posts by: Michael Swan

Hi @Jay Hinrichs,

I never get advice from people that have never been down my path.  It is amazing that people listen to you if you have never walked a mile in their shoes!! 

Beware of false or fake info people!!  There are sooooo many people on BP that can see through all this fake news.

Also, I don’t take financial advice fro people that have less than I have. Why do people give advice to people that have more than they have?

Go BP nation!!!

Swanny

There are soooooo many BP members that have noticed your inflated rated system, but are way too scared for some reason to confront you james@James Wise.  Again, I call fake news!!

Wow @James Wise,

Sooooooo many babbling replies and inflated rating systems of Cleveland areas.  NE Euclid is a solid c+ neighborhood and west of new Amazon is  d+ neighborhood. Again, another example of your fake news!!!  Wes of f new Amazon is a d+ neighborhood.  Your rating system is one to 2 levels too high.  Fake news!!’

Swanny

Whoa, 

Why are you jay@Jay Hinrichs replying in long winded, replies?  Very interesting!!!@James Wise, how come you had your disturbing reply?  I call fake news!! 

Swanny

@jame

Do you all see the fake news?  James Wise realized early that I saw through all the fake news, including his fake news Cleveland rating system.  How can you not see through this fake news?

Swanny

Sorry @Jay Hinrichs,

I call fake news at this point. Have you looked at your past posts lately.  You criticize my long posts and I have read many of you posts.  You talk a good game.  What do you really own?  The same with James Wise?  What do you really own.  It needed to be said.  What is your angle?  I call fake news!!  Talk is cheap!!

Sorry!!!  I have been listening to yours and others fake news for about 10 years now. Don’t fall for it people!! James Wise and Jay Hinrichs have  never talked to me in person after 8-10 years of posts here!!!

Swanny

Hi@Jay Hinrichs,

Right now, I am about 55% debt to value in all my doors.  NO inherited money.  Me, my wife and mom and dad went 50/50 in all down payments and money in on our original 8 Condos in San Diego  and 8 single family  in Euclid.  The Condos in San Diego were with 25% down 30 yr loans.  They doubled in value in a 3 to 4 yr period.  The ones in Euclid we paid cash in 2014-2015 and they increased value 50% and we sold them in late 2017 and 2018.  We keep and hoard a lot of cash to weather the storm and reposition these value plays.  We only have other investors in 5 of these 10 apartment complexes.  Most of the apartment complexes have been 5+5 loans 20 yr Amortization.  My goal after 5 years on those debt wise is 50% or lower debt or value.  Hopefully 40% debt to value at Refi or sale.

Swanny

Hi all, 

Another way to look at things is that YOUR team in an area is critically important to your success.  Also, many people think true Multifamily Commercial is the same as 1-4 units investing.  It is not!! 

There are soooooooo many land mines to step on if you don’t have the right team and connections.  I have established my entire team out in the Cleveland area.  My RE Attorney lives in Shaker Heights.  My RE CPA has his office in Shaker Heights.  My fantastic PM (gone through 3 since 2015) lives in Lake County.  My local lender First Federal of Lakewood.  My national lender highly endorsed by David Lindahl’s RE Mentor Program for my latest Freddie Mac Loan.  All the vendors that we have experimented with and have preferred ones now etc...  

Another, following proven strategies in the Cleveland area to mitigate RE taxes, Water sewer costs etc...

All of this on your own takes lots of time and money and mistakes too.

Finally, as @Jay Hinrichs has stated, I was originally trying to do what I was doing with the single family, thinking I would be safe on my first two apartment complex 1031 exchanges and go for complexes that were small 8 units and 10 units, that the numbers said they were fully occupied and would cash flow nicely.  Also, made the rookie mistake of thinking an apartment complex was residential RE taxes, when of course I found out they were Higher Commercial taxes on the 2435 Noble Rd. deal.

Those are just a few of the traps a newbie or rookie of Apartment complex can step into.  The list goes on and on.

These commercial loans are serious instruments that you must have an exit or Refi strategy to succeed. Especially, with 20%-30% down and the rest leveraged. What are you going to do when the loan comes due 5-7 years down the line if you have not increased NOI dramatically etc.... Apartment complexes 5 units or more is not intuitive like I found single family to be with the 8 single family I had at one time in San Diego and the 8 single family I had in NE Euclid too.

Just think, I purchased my first little rental property condo in 2011 in San Diego and now I am approaching 200 units and 10 apartment complexes.  

That was all on a most ever combined family w2 earnings of $80,000 before taxes and now am at $180,000 cash flow alone per year.  Those little Condos in San Diego I purchased in 2011 were only cash flowing $50,000 a year!!

If I can do this, you can too!!  Find someone like me.  A mentor to invest with first and partner up or invest with  them in a few of their deals.  They could teach you a lot and it would be a lot safer than going it alone in a new market out of state.

Feel free to message me and talk more about your situation.  I am off for school (PE teacher at a Parochial School in San Diego) for 5 more weeks.  I love to talk to people on the phone too.  I am not a broker, agent, etc... just an investor with 10 apartment complexes for 200 units.  

And of course, always a teacher at heart.  I don’t sugar coat anything and tell it like I see it based on actual investing I have done and continue to do in Lake County and North East Euclid too.

Swanny

Hi Charles,

Lake County is soooooo business or landlord friendly compared to the Heights etc... it is an entirely different world in all aspects.  Commercial RE Taxes are about 50% lower than Shaker Heights and Cleveland Heights too.

That’s why I got out of the areas you were investing in a hurry!!  

Good luck to you too Charles!!!

Swanny