All Forum Posts by: Harish V.

My observation is that SFM owner/manager in our area tend to keep the 1st term so that lease ends in Summer (June-August). E.g. in Dec, houses are offered for 6 months. In Oct, they are offered for 9 months etc.

What ultimately matters is it should work for Tenant and Owner/Manager.  If you get a solid renter, willing to rent for 2-3 years and you do not want headache of re-leasing, go for it. If you get someone asking for 9 month lease, but solid renter or higher rent payment, go for it. 

Things to consider in any decision are:

1. How likely are rents to increase significantly in years ahead. What will you loose by providing longer lease at fixed rate. What about the costs increase in terms of property tax increase (due to valuation increase, Parcel taxes etc), HOA dues increase etc. Are you ok to cover any increase in these costs due to inflation etc.

2. How solid is the renter. 

3. How is the rental demand in the area. Cost of vacancy etc.

There are too many moving parts and you will quickly learn that at time things will be smooth, and at times there will be surprises and you need to manage around them.

Another day another disappointing update from Buffalo project from Mr. Neal Bawa and company.

Between August and Nov update, its hard to find any change.

Items in progress earlier, are still in progress. All timeline is now delayed by 3 months. In short no change.

Cash flow that was supposed to start in 2019, will now start "in a couple of years". 

The only new thing is offer to meet with Neal Bawa. I don't think I will take that up. I have offered to help before, to which I got reply that best thing you can do is let us do our job. So please do that, no need to spend time talking to us and delaying the project another 3 months.

Agreed, most states have laws restrict from profiting from lease breaking. Hence you only loose.  If it's a deal breaker consider, renewal at 5-10% or whatever max allowed by city/county. You can always offer lower rate if market conditions warrant.

Forget Fiduciary, I am finding more information about Grocapitus/MultifamilyU that leads me to believe strongly that Mr. Neal Bawa is outright bad news and should be avoided. PM me if you want details.

Agree with Peter that with Grocapitus you need to research the actual principals. You should not rely on Grocapitus to do it for you. They just collect fees and provide you infrequent email update in return. They are not accountable. They are not fiduciary.

Here are the problems we faced with Mr. Neal Bawas project.

1. Project running 2+ years late due to financing. Good projects should not face this issue. Experienced teams should have network to avoid such outcomes. Problem with underlying data and assumptions.

2. Missed opportunities. Brownfield credits missed, no explanation on why. PPP not taken advantage of. Points to problems with project analysis, network and management issues.

3. Missed market opportunity due to college reopening this year. Points to Management issues.

4. Multiple quarters of busy updates and changing directions, failure to find credible partners.  Points to network issues and management credibility.

Many questions no answers. Mr  Eric Bleau, Anna McClure all ran away. Never answered even PMs. Will keep this thread alive with our experience with Mr. Neal Bawa.

 Thanks for the input. I definitely would like to try and take this up as part time gig. Will see how this goes.

I am in California. Any idea of the cost involved for maintain license? I think reporting to licensing authority will not be problem. Only problem can be prohibitive cost that outweighs benefits.

I am a do it yourself investor. Mostly single family home, buy and hold as passive activity. I was considering getting a SalesPerson license, mostly to allow me flexibility to

1. Write my own offers

2. Flexibility of not calling another agent if i want to see homes.

3. Use depreciation losses to offset the income - overcome limits of passive activity.

Any thoughts on disadvantages?