All Forum Posts by: Michael Swan

@Ryan Karr  send me a message. 

Swanny

I love what @Rob Gillespie said,  "

"Let me explain. They are not dishonest, they are not uneducated, but there is not a company on earth that will take care of running your property like you do.

To keep this short so it does not turn into a book instead of a post, you can choose whomever you would like and they are all about the same in price. Some companies will only work in certain areas, while others work all over NE Ohio.

Stay involved. Manage your Manager. This is YOUR asset. This is YOUR money. Pay attention to it.

Make sure you know what is going on and verify your data. "

Well said Rob!!  I have 120 front doors, primarily in Lake County and NE Euclid.  BUYER BEWARE!!  Be careful of the area, promises made etc.. If I have one single family rental property, I have $10,000 in reserves, if I have 2, $15,000 in reserves, if I have 3-5 I have $20,000 in reserves and if I have 5-10 I have $25,000-$30,000 in reserves.  It is not if Murphy will raise his ugly head, it is when.

Stay safe out their guys and ONLY talk to investors out there that have traveled down the road you want to go in the area you want to invest.

Swanny

hi @Chris Roche,

I sold all my 1-4 unit properties and have moved to Multifamily. If I were you, I would get about 7-8 residential agents, with offices in those communities you are interested investing in. They often get pocket listings that are not on the MLS yet. Also, they have PM they suggest too and you can interview their suggestions. Make sure you send them a Bank Statement with account numbers marked out to prove you are a serious buyer and not a talker.

Swanny

Hi @Jay Hinrichs,

Great suggestion!! That is Current up to date pics.

Smart!!!

Swanny

Hi @Jeff Brower,

It is really important to talk to investors, that invest in a certain area too.  That way you can get a good realistic picture of an area.  I am in the process of replacing a roof at this time of the year too on part of an apartment complex.  That will be about $15,000-$18,000 when all is said and done.  You need to plan for events like this in NE Ohio.  Your budget needs to be reflective of that.

Swanny

Hi @Jay Hinrichs

I always leave my phones available to BP members from 3:15-6:15 PST (I live in San Diego) and am always sad when people call me after they already bought, believing from fake news regarding them thinking or lead to believe that was a C class area and really being a D class area or the Path of Progress scam.

I like it a lot more when people call me before they buy and I can help them get their head on straight and I ask them who told them this is a solid C class neighborhood (fake news) and I give them the same advice as my last message.  Sometimes I even get on google earth together with them and I walk the streets in a 6 block radius.  If  they take the bait and already purchase, calling and telling me they thought it was a C class area by the hype it is clearly too late!!  Then they say, I want to sue etc... 

I don't even look at the house, duplex, or quad, or apartment complex, until I take that google earth walk.  If it looks like a duck, quacks like a duck, then it is a duck!!

Don't get me started.  I learned my lesson early on and I don't want you guys to make the same bonehead mistake.  This is my gift to you all.  By the way, I was included in the new book by Brandon and Josh that came out October 29th.  I'm glad I can be of help to investors here on BP.

Happy Holidays and Happy New Year!!

Swanny

Yes. @Jay Hinrichs, as long as brokers don't tell them that NE Euclid and areas of Lake County like Painesville, and Elyria, where I presently am targeting are "B" class areas.  They are not they are solid C+ Blue Collar hard working neighborhoods.  There is too much inflated classifications by brokers and people trying to sell people out of state. I totally agree, if it was a great deal, I know people in Cleveland that would be scooping those things up. 

I suggest people of BP find those solid C+ areas and find agents on their own that have offices in those areas and get about 8 brokers looking for in those solid C+ areas and get them to find those listings before they hit the MLS, since they have store front offices in those communities. At the same time get their suggestions for PM to represent you that you can interview too. Show those residential agents a bank statement with account numbers marked out, so they know you are not wasting their time. Establish relationships that way, instead of people targeting and soliciting you.

Last, ask people that already invest there and people that have lots of front doors, like me In those specific areas to verify why they invest in those particular areas.  Someone like me that has 122 front doors has nothing to gain, an angle, etc.... I only now have 8 apartment complexes and have already sold all my single family in the areas I invest.  I am an objective investor and hate to see people sold a bill of goods, telling them they are in C or B class areas, when they are clearly D class areas.

Swanny 

Exactly @Jay Hinrichs!!  BUYER BEWARE!!!!

Swanny

Hi @Jay Hinrichs,

That Google Earth Test of commercial properties, surrounding a 6 block radius has not failed me yet it clearly seeing the difference between a solid blue collar  "C" class neighborhood and a very risky "D" class neighborhood.  

You can't believe brokers etc... You need to see with your own eyes.  Be careful if you are in California. Washington, Hawaii, New York, New Jersey, and now parts of Texas.  You are the target!!

Buyer beware,

Swanny

I have 8 apartment complexes in that area in strong blue collar neighborhoods.  As Jay suggested, if you think you are buying a good deal, be careful some of these areas that are being sold to people from California, Washington, Hawaii, New York, New Jersey, and even Texas now are being led to believe they are buying "C" class and "B" class properties here on BP and they are really scary "D" class properties.

Make sure you google earth 1/2 block away to 6 block radius at all the commercial, shopping etc... if you see grafitti, broken windows, boarded up windows, trash all over the place, payday loans, unsavory characters, NO large grocery stores, NO trendy shopping, coffee shops etc...  you are in a "D" class neighborhood.  If people tell you you are right in the path of progress, that means it is highly speculative and right now you are thinking of investing in an area that is unsafe after 10:00 pm at night.  Also, when your place is vacant, you need to notify your insurance carrier and pay much more for insurance, about $100.00 a month (if you want coverage during being vacant), due to possible break ins to steal all your copper and they won't turn off the water when doing so, or squat and do drugs in your place etc... 

If you wouldn't feel safe with your 18 yr old niece walking In the neighborhood at 10:00 pm. on a Friday night, why would you invest there.

Swanny