All Forum Posts by: Michael Swan

That's great!! We need to talk.  I will contact you on the phone Wed.  Look for my call it will be from an 858 area code. 

Have a great night!!

Swanny

Hi @Irina Belkofer

I currently prefer NE Euclid, Lake County as Far East as Painesville, and parts of Elyria.  I like those areas due to demographics etc... What areas are you liking right now?  How about you @Jad Boudiab?

Swanny

Yes @Jad Boudiab,

Fudiciary duty?  I have many investors that live in your neck of the woods that I have given advice etc... they are the ones I get my info from.  No Fake news by supposed experts that have an angle.  That is the key!! Maybe a few here on BP that I have helped, may put there 2 cents in here too.

Swanny

Hi @Miguel Nava,

I have even had a handful of people from Texas contact me too, due to rising prices there.  A few from Illinois too.

Swanny

Thank you @Irina Belkofer,

Exactly!! That's what I am saying.  I talk to people everyday on the phone, by message etc... trying to warn them.  To be forwarned is to be forarmed.  

Swanny

@Steven Pearson

I live in San Diego, was featured on Pages 25-26 of Brandon and Josh's newest book, I was also featured on Podcast 238. I have 8 apartment complexes in Lake County, Euclid, and Akron.

Welcome!!

Swanny

Hi @Jad Boudiab and all in this thread.  On Podcast 238 I told my story on how Noble Road went bad really fast.  I checked the normal things the Newbies do, visited the property, saw the elementary school and middle school nearby, I figured it was at least a few miles away from Euclid Ave.  went south a about 3-4 blocks and the area seemed to be adequate.  I was excited about the fake numbers the broker and owner was showing me.  Fake high in place rents.  Was excited about 4 members of the same family being in 4 of the 10 units.  As soon as the sale went through the blank hit the fan, we had to evict 2 of the 4 menbers that were not paying.  It turned out that I vastly overpaid and that I realized this would not be a good value play and learned my lesson the hard way. 

 I only trust 2 Commmercial brokers now out of the 10 I originally dealt with since 2015.  Many are like glorified used car sales people that will sell you out in a heart beat and can't see the forest through the trees and are NOT thinking about all the future business they could have received from a true player like me.

My advice to newbies that want to invest in true Multifamily, to go in on their first deal with others that invest in that area.   

Be careful of people that are marketing to you due to you being in California, Washington, Hawaii, New York, New Jersey, and now even Texas and parts of illinois now too I hear from people buying in D class areas when they think they are buying in C or B class areas.  They have an angle!! I have people in Cleveland that I know want good deals.  The reason these people are marketing to you is that it is NOT a good deal.  Some of the areas they are marketing, I would not take the property for free!!

I just Google Earth down to the street level at the commercial surrounding the property in a 6 block radius and it is a dead giveaway.  Payday loans, Used  car dealerships,  grafitti, broken or boarded up windows, abandoned buildings, unsavory characters loitering.  

NO Starbucks, Trendy shops, restaurants, cafes or coffee shops, large grocery shopping etc...  If it looks like a duck, quacks like a duck, and walks like a duck l, it is a duck.  If I would not want my wife walking in the neighborhood at 9:00 pm. Or later, I don't want to buy it.  If you fix up the duck to a beautiful Swan (pun) it will turn into an ugly duckling eventually!!  Caveat Emptor!! Buyer beware.  Think about the angle.  You search out the broker etc... don't have them search you out.

I Only but in Blue Collar hard working neighborhoods, where the resident's priorities are usually family and then Paing their rent.  Not a car and bling and drugs and then maybe pay your rent.

You wanted an honest opinion and what I would have done different.  So there you have it.

Happy Healthy and Prosperous New Year.  Get Brandon and Josh's new book.  I am featured as one of the first examples in Ch 1 on pages 25-26.  No fake news with me!!!

Swanny

@Zachariah Hays

I told my story on Podcast 238.  Also, Brandon and Josh just included me in their newest book on pages 25-26

How to invest in Real Estate a Beginner'a Guide is the name of the book.  It was published  Oct 29th.  

We had 10 rental single family here we purchased in San Diego in 2011 and 2012.  They doubled in value and we 1031 exchanged most of them for Apartment complexes in 2015-2017.  We also bought with cash in 2014-2015 8 single family in NE Euclid.  Those were purchased before we started 1031 exchanging the Condos for the apartment complexes.  I had a colleague of mine that was investing there and turned me onto the area, before Amazon was even a thought or President Trump was even hinting he would run for President.  I was buying short sales, bank owned Foreclosures etc... for about $25,000 average in NE Euclid and we had to put about $5,000 each to fix up. 

We just sold all those for about $45,000 each in 2018 and 2017 to focus on our repositioning Apartment complexes.  I really like NE Euclid and Lake County.  

Lake County is especially Landlord friendly.  Plus, the demographics are good hard working C to C+ neighborhoods that pay their rent like clockwork.  I have about 118 front doors and only 4 vacancies and 2 of those are due to people that died in the last month.  Some of the other areas touted a small good C class neighborhoods are really D class neighborhoods.  

Buyers beware.  I have been there and done that.  Never again!! I had a 10 unit very close to Monticello and Noble Rd.  I thought that would be a C class area, but later foolishly was duped. I sold that dog and ended losing about $200,000-$250,000 over the course of 2.5 years.  The city is also beginning to become more liberal and Cleveland Heights Commercial Property taxes are just Stupid over 5%.  Crazy!!!

Oh!  Don't get me started on Cleveland Water.  What a mess they are.  I can tell you some stories about CMHA, the City gastapo for your properties etc...  I was soooooooo happy when I sold that 2435 Noble Road, in Cleveland Heights.  I bought it for $420,000 May of 2015 and sold it for $320,000 December of 2017.  I put $100,000 down on that money pit and took $75,000 out of my pocket for 2.5 years of ownership too, plus I had to give back $25,000 at sale too.  I paid a 1% penalty for paying off loan early too.  I was attracted by the nice improvements that were made to the place.  That quality of tenant doesn't appreciate that. 

Lots of Fake News out there.  Buyer beware!!

Swanny

@Zachariah Hays

Welcome!! I would talk to Mike Rosso. He lives there and invests there. If you want to talk to me, message me too. I have 6 apartment complexes (82 front doors) in Lake County, a 12 unit in Euclid, and a 24 unit in Ellet,,in Akron. I am only an investor.

Swanny

@Michael Lambert

This is Swanny. I live in San Diego and have 8 apartment complexes in Lake County, Ohio about 30-40 minutes east of Cleveland, Euclid about 25 minutes East of Cleveland, and Ellet a suburb of Akron. Message me and we can talk about being in San Diego and investing in the Cleveland, Ohio area. I am an investor and can give you an unbiased realistic picture of the area I invest in.

Swanny