All Forum Posts by: Michael Swan

Hi @Account Closed

I would love to talk to you about what you are doing and have done in RE.  We have used Michael Blank’s template and another from David Lindahl’s group RE Mentor.  

Feel free to message me and we can talk more.  You may want to watch podcast 238 too and get an idea where I started and then we can talk about where I have come up to this point and how I got there.  Then, we can talk about the plan as to where I am going now.  

At the moment my day is spent managing my assets by managing my 3 property managers, repositioning our apartment complexes for the refi or sale event, talking with brokers and different people about acquiring more deals, and my lending agent, book keeper, accountant, etc…

I am intrigued by your analysis that you speak of on BiggerPockets of deals and would love to talk shop with you!!  

I know you like to talk numbers on here and you think people are not being very transparent.

My latest Refi was three months ago. I bought a 24 unit in Painesville in 2019 for $760,000. After increasing the NOI substantially, we just refinanced at a $1,475,000 valuation. We took back about $670,000 cash back, tax free. Our total investment at purchase was about $300,000.00. In the previous two years of ownership we had about $100,000 cash flow too. The cap ex required was pretty minimal over those two years. We spent about $50,000 total on cap ex.

At refi the old loan was 20 yr amortization with a local bank and the new loan was Freddie non recourse, first 3 years interest only on a 10 yr term.  The fixed interest rate for the 10 years is 3.88%.  

We set that refi up well to maximize the tax free money we received back.  We did the same with another 21 unit in Painesville back in March of this year too.  In 2022, I plan to do a few more refis sooner than later and possibly sell one apartment complex too.  

Plus, keep making offers and finding a deal that meets our parameters!! I need to be able to bump rents up at least $250.00-$300.00 a unit in the next 2 years and at the same time reduce wasteful practices the previous ownership was using on an acquisition too!! It really is not that complicated with the right team.  That is key!!

I can’t wait to hear what you own Jack and pick your brain too!! Nothing ever of great importance was achieved alone!!

Swanny

Hi Cameron 

Message me now and we can then talk on the phone and I can text you some links to how I do it etc.. That goes for anyone out there on BP.  

I love this stuff!!

Swanny

BP Podcast 238 Guest 

Hi @Cameron Mitchell

Where are you marketing your place?  I use FB marketplace Free and I get over a thousand views and even during this time of the year I get 25-50 message replies per week.  When they reply with “Is this still available I leave a reply like this to them and I have them directly call and text my PM’s cell phone.

Here is my reply:

Yes. We provide you with your own furnace and water heater, no old Boilers that can break down giving you a lack of control. So you pay your own gas and electric and a small monthly water/sewer utility fee like the complexes around here in Mentor.

Rent is $825.00.  You need to make at least $2,475.00 a month. NO evictions and we check your criminal background, rental history, credit, and we need pay stubs too. No Section 8. We love your furry (pets)family members for a $40.00 fee 25lbs or less and if more than 25lbs $60.00 per pet per month, plus pet deposit. 2 pets max please.

Thank you for your interest in becoming a resident at Cardinal MPARK Apartments in Mentor. Tell them you saw the ads on Facebook when you call. Please leave a voicemail and then a text message to the number below. Candice will get back to you as soon as she is finished helping other residents etc.

Candice would love to give you a personal tour!! This one will go really fast!! We rarely have a nice apartment home like this come available.  Hurry!!

Candice
(I put the phone number here)

Often her voicemail is full with messages and she get lots of text messages.  The next day I message them again asking:

Any luck contacting Candice regarding a nice Apt Home at Cardinal MPARK Apartments?

Candice (I put phone number here again).

Then the next day I do the same again and the day after, the same again.  Often on the third day believe it or not, they reply:

Oh. I forgot.  I will contact them tomorrow or ai will call now.

I say,

Great!! Please leave her a voicemail and a text message please.  Take care.

remember, this is all copy and paste on my phone.  Soooooo easy.

If they don’t reply after the 3rd reminder I delete their message etc…

If they say I have been trying and getting no response, I ask them:

What is your first name and phone number?  I will let Candice know right now.  Please keep trying too.

Then, I send my PM their name and phone number (simple copy and paste) to my PM.
 

Easy as that and copy and paste is sooooooooo easy!!

Swanny

Hi all,

This is Swanny.  I told my story on how I transitioned to Multifamily in the Cleveland, Ohio area on podcast 238. 

I now have 9 apartment complexes in Painesville, Mentor, and Akron Ohio.  All of my apartment complexes were in pretty nice C plus or B Class areas and the average price I purchased Apartment complexes were about $35,000 a unit and since we have forced appreciation and are in the harvest period now, we are hoarding a bunch of cash from refinanced and a sale too.  In 2022, we expect to sell a 57 unit that we bought for $35,000 a unit in 2019, total purchase price was $2,000,000 and we are planning on selling between $5,000,000-$5,500,000 and we also plan on Refinancing 2 other complexes, a 34 unit and a 24 unit too.  

Check out Podcast 238 to see how I started.  Also, anyone that messages me, I love to talk shop on the phone too!!


2022 is going to be a great year!!! If a lowly paid PE teacher at a parochial school can do this, anyone can!!  I just retired from my teaching gig spring of 2021 and working on my RE investments solely now.  It is great to be financially free!!

Swanny

Be careful!! Cleveland Heights and Shaker Heights notoriously bad for property taxes.  That’s why I sold there and bought in Lake County.  Plus, they are landlord friendly in Lake County too.  I have 105 units in Painesville and 57 units in Mentor.  I had 8 units in Shaker Heights and 10 units in Cleveland Heights that I sold in late 2017.  I just sold 12 units in Euclid. The property taxes were pretty high there too and they were getting more tenant friendly there too.  Especially Cleveland Heights and Euclid, I don’t see the hype.  Nothing special in those areas in my opinion.

Swanny

Hi @Avid Najdahmadi

Just put a lot more down and it will cash flow.  I have lived in Mira Mesa since 1978 and I love Mira Mesa.  If you put 40% or more down and you keep about $15,000 in reserves after fixing it up, you should be good.

When you want to make some real money, contact me.  I have transitioned to Multifamily.  I have run a quite a few deals and invested as a passive a couple apartment complexes now and am financially free after 10 years of investing!!

Swanny

That’s one of the 
reasons why I invest in Lake County, instead of Cleveland.  I live in California and wanted to get away from liberal tenant friendly areas.  

Swanny

Hi @Mike Trzaska

I invest in Lake County.  Are you talking about Lake County?

Swanny

Hi @Wai Chan

Message me ASAP.  We need to talk.

Swanny

Hi @Art Alonso

You really need to message me sooner than later.

Swanny