All Forum Posts by: Shiva Bhaskar

Former agent (a number of years ago) and current investor here. A good buyer's agent is very helpful, especially for your first 3 or 4 deals. If you are going to do out of state, you definitely want a few good agents there. You aren't going to be on the ground the way they are, no matter how much research you do.

If investing locally, I think the first few deals with an agent makes sense. After that, it depends. I think having relationships with agents, and letting them bring you deals (even as a buyer's agent), is a great idea. But getting your own license and MLS access can't hurt either, and when you know what is a good deal, and every aspect of due diligence, you can jump in and handle things yourself. I am less than 5 deals in myself, so not yet there, but once I hit that mark, I plan on getting a license & using MLS on my own, and also working with buyer's agents where it makes sense!

Hey Scott, fellow LA guy here. Had only invested locally so far, but expanding to CLE. 

Was there in October for five days to look at places, met some great realtors, contractors etc. DM me and will share info. 

Have not done this type of rental yet BUT my college buddy's wife's family owns a couple of decent sized apartment complexes in  Maryland, which are focused on off-campus university housing for students. Probably a total of over 80 doors. She is quite involved in the business herself, and we actually discussed at length a while ago when we all hung out. 

One tip she shared was to try to get parents to cosign on the lease. In a legal sense, this won't mean a whole lot (you aren't likely to go sue over a bit of damage), but it does get some "skin in the game." Also, you may want to put in the lease (or maybe state law requires it), that you (or your handyman), will be checking the smoke detector at some point in the lease, let's say 4 or 5 months in. 

This gives you a chance to (legally) enter the unit, for that task, but also to make sure that things are being maintained properly. If you want, you could even put in that you require an inspection as part of lease, but since you may get push back from tenants on that (I don't know your market and how this works), the smoke detector is easiest approach. 

You could try asking for 1.5 months or 2 months security - in most areas, this can lead to longer vacancy time, but you do have more peace of mind, and maybe your market's demand is such that it won't be an issue. 

In general, I think with student housing, you'll have to assume that some amount of renovations will be required after move out (which is why you probably want to choose cheaper flooring and appliances). Other than that, it sounds like a good opportunity - occupancy is almost guaranteed with student housing! 

 On the one hand, this doesn't sound necessarily bad. I mean, living in a hotel, and just having gone through a divorce,  is a tough set of circumstances, so he feels urgency, which is good. I like your screening requirements, income, financial docs, credit and income history is a must. I would not compromise on requiring him to provide you with all of those things, however much urgency he might feel.

However, I do have a story about an overeager tenant. Recently had a single family rental come up, and we had a woman (and her fiance) who were very eager to sign a long-term lease, and get started as soon as possible. We came to find out that they place they currently listed as their address, they were evicted from, less than a year earlier! Needless to say, we did not take them. The point is, due all of your due diligence, don't ever compromise on that. If a tenant cannot live with your process, and wants to rush things, move on, as they are not a good fit for you. 

 I read Evicted, and am surprised the only lesson they could draw from that book, is that landlords are evil. One of the landlords profiled in that book, is a woman who grew up in a low-income community of color, and worked her way into rental property ownership, and has multiple tenants who ruin her houses and cause major issues (although she still manages to do quite well, thanks to being aggressive and savvy in how she manages, renovates etc). You couldn't read her story and approach, and think she is just out to get everyone. Same is true of many people who invest in challenged areas.

I am moving into investing in Cleveland after having focused mainly on my local area in CA, and am quite excited about the prospects. However, to speak frankly, it is not DC, LA or NYC (I have lived in two of those three), all of which are high growth, high demand areas that recieve investment globally, and where investors will tolerate more headaches. If they make things too difficult for landlords in Cleveland , investment will pull back, and many areas will be in worse shape than they already are. If anything, based on what I saw, the problem is underinvestment and a shortage of well-paying jobs, not gentrification - this is not a solution. 

Can't say I have bought in areas below a C+ and which have some likelihood of improvement, so I am not sure how much of an issue this'll be,  but I am newer, and am sure it will happen. I think if things get to the eviction stage, all other options have been exhausted, so you must do what's necessary. 

There have been multiple chances, at that point, for tenant to resolve the situation. Yes, it sucks this is happening right before Christmas etc, but that doesn't change the realities of the situation - a tenant is in default, and a landlord is not being paid, and is losing money. 

I do think people who are getting into more challenged area should be realistic about this happening, which I think a lot of folks are not. Assuming you are managing this for someone else, I'm sure they appreciate you doing everything possible to get their investment cash flowing again. 

 I hear you Nelly - as a former boss told me many years ago "beginnings suck." The first two offers I ever placed were both accepted & then, each deal later fell through. This was in a few months time span. Was very frustrating BUT a good learning experience. Funny enough, this wasn't too far from you, in Queens, NYC. The tri-state area can be a tricky place to conquer but it is possible. 

It sounds like you are having doubts about your realtor, and while I generally believe in giving people a chance, I think you may want to find another to work with. Feeling like you are being taken care of and are comfortable is absolutely crucial. If you go to a local REI, your fellow investors will definitely know some other folks who can help. After doing a deal or two, getting your own license isn't a bad idea - if you know your criteria, with MLS access, you can probably handle the process yourself.

Where in NJ are you looking? I used to live in NYC for many years, and one of my friends there invests in B- to C+ areas in Newark, and has had a good experience. Closer to you, I am aware of folks who've done well in some areas of Trenton, although this was a while ago. With prices having gone up so much in most markets, you might be looking at C- or D neighborhoods, which I would avoid, at least as a beginner. 

Could make sense to look out of state, given how expensive NJ is. I invest in CA but recently visited Cleveland and found some great opportunities, there are many other markets that are also affordable and can make sense. With that said, first deal I did was local, and there is a nice comfort factor in being able to drive to the property and keep an eye on it. 

Keep going! You'll get there - and someday look back and laugh at all of this. 

Grew up in the South Bay, Torrance. I can remember when Hawthorne used to be a D+/C- area, arguably worse in some parts. Lots of good stuff happening in Hawthorne now though! I think it's a great area to invest for appreciation right now. Try to find something that needs at least a bit of work, you can't go wrong. 

I've won a property with a slightly lower bid because I had multiple pre-approvals and was putting in a bit more cash. So, if you didn't win out despite a higher offer, it does not per se mean that your agent did anything wrong. 

 If you don't trust her, that's a different story, but I think lots of agents may not show every deal to every client. They might pick the person whom they think has the highest chance of closing, or has been working with them the longest, or whatever. I would personally keep the relationship open, that is, find multiple agents in your market to work with. 

I don't think this is an "either or" choice. Everyone has their own preferences. I invest in both stocks and real estate myself. 

I have a close friend from college who does both index funds, as well as picks his own stocks and bonds. Frankly, and he admits this himself, he does not enjoy the level of business interaction with "strangers" that REI requires. If he got into it and had to be very hands on, he probably wouldn't enjoy it, and life is short, why do things you don't like on a consistent basis? Most of my non REI friends think that real estate looks cool on paper, but if they had to deal with headaches, would have it.

For every GE and other companies that lose value, there are firms that have a strong long-term trajectory, or come out of nowhere and grow like crazy (Facebook, Amazon, Google all come to mind in the past 20 years). Also, we all know that real estate can drop in value. Just ask Detroit. 

 I am working on moving into investing in Cleveland, where most houses sell below their peak pre-2008 crash values (with the exception of some hot, hip areas). The GM plant that just closed in Lordstown is almost certain to hit prices and occupancy rates in places like Youngstown, which are already well below the peak of 15 years ago. What happens to people who invested there? I love real estate, but I don't think it should be thought of as the only investment vehicle.