All Forum Posts by: Shiva Bhaskar

 You are doing all the work here as far as I can tell, and providing them with mentoring and education, in real time (i.e. they have a front row seat), and making 8% to 10%. It's a solid opportunity for them. Sorry to be harsh, but don't waste time on unappreciative people. Plenty of others would happily take this opportunity. 

 Which county are you in? And yes, I think if you're not experienced with housing court in CA, a lawyer is a must from day one. I will admit that as a lawyer (not in this field), I am biased, but really, it is important.

 Remember that we have professional tenants here (who live for free by knowing how to abuse laws), and also groups like the Eviction Defense Network and BASTA (if you live in Los Angeles), who help tenants for free, and collect attorney's fees. The good news is, with a smart lawyer, these issues can absolutely be handled. I would ask your fellow investors and property managers in your area, who they work with on evictions.

This is why owning through an LLC is nice. I'd love to see the tenant add 4125 Secret Landlord LLC, or some similar name, on Facebook.

Great topic. I hate going near politics on BP, but regarding the question of whether this is something favored by one party or another, clearly, Democrats on average are more supportive of rent regulation, so you are more likely to see that in blue areas. 

With that said, we've seen a trend in the past few years where left leaning economic proposals, when placed on the ballot in more conservative states, do quite well. For example, in 2018, Arkansas and Missouri voters chose to raise the minimum wage considerably, while voting for Republicans for many other offices. Utah, Idaho and Nebraska voters all chose to expand Medicaid in the same year, even though these states are all "red states" by any definition. Not taking a position on whether this is good or bad - just an observation. 

The point is that some economic positions we might associate with the left seem to do well with voters in conservative states. What this means is, if you invest in a red state where rents in many areas are increasing, or housing costs are otherwise becoming an issue, don't be shocked if rent regulation ends up on the ballot, and does quite well. 

Since home ownership rates have dropped, I think that across the nation, fewer people probably care about property taxes and other landlord friendly issues, vs 30 years ago, and more care about rents (since we've seen the portion of renters increase, and homeowners drop). This is especially true with somewhat younger voters. So yes, in general, I think we should assume that things move in the direction of more rent and housing regulation, not less. 

Sorry to hear this is happening. I would definitely start eviction process as soon as possible. If you aren't 100% comfortable with how it works, and you're in a tenant-friendly market (i.e. more complex procedures), then you should work with a housing attorney who knows the process. 

As others have noted, since damage is a possibility, I would consider cash for keys.  It's frustrating on principle, but it could help avoid some headaches with a costly rehab later. 

@Kelsi Dockins this is fantastic! Great work. @Sammy Lyon this makes $650 rent for $37K per door look like nothing special :-) 

 Hey Joel, can't speak for Detroit, SC and AL, but I can tell you that in Ohio (I invest in Cleveland), you have lenders (not large banks, smaller lenders), who will go as low as $50K. Probably could find lower if we shopped around more. Of course, rates are higher than what you'd get from a bigger lender on say a $150K loan, but still pretty competitive. I think the locations you mentioned should offer it as well. 

I have a friend who's a realtor and rehabber in Detroit and knows a lot of folks, happy to ask him if he knows of anyone who will go down to $75K or less. Feel free to direct message me. 

I am definitely a 2nd Amendment supporter, but concealed carry is rare here in CA, and I can't say I operate in areas where fear of violent crime is high enough that I would feel a need to be carrying. With that said, I've come across people who operate in some of the rougher areas of Cleveland or Memphis or other cities, and I can't blame them for wanting to be packing on the job. I would personally not want to operate in such an area, but I respect those who do.

I would say that concealed carry makes much more sense. I mean, without it, you lose the element of surprise. Also, you might (unintentionally) scare off potential tenants or potential employees, contractors etc, who think the area is dangerous and they should stay away, or you're an overly aggressive, tough person who will cause issues. This might be an unfair perception of folks who open carry - but it is still a real concern, and one which is not going to help you. Concealed carry seems like a better fit all around. 

 Hey Wil, I'm a lawyer, and I'll say,  normally, I don't think you really need an attorney for doing a 1031. The 1031 intermediaries I hear about most as being solid are often not attorneys, although those who handle larger 1031 deals involving multifamily and retail/office properties often are. 

With that said, it sounds like you have a few more complex issues here regarding the less than two years, whether you used it as a residence, etc. Might make sense to get an attorney who understands these issues, and how to effectively position you to make sure this works out. I'd ask other local investors in your area for a referral, or visit Avvo.com, often can find good folks on there. 

I live in LA, about a 25 minute drive from this property, so I know the area. I saw the landlord interviewed on TV, and from what he said, sounds like the property was inherited (I would guess he's in his late 40's or early 50's, so his parents probably owned it).  He brought up the point of taking care of family, i.e. his daughter who is in law school. I get where he's coming from, but 102, always paid on time - at her age, we know she won't be around for very long, so why not just let her stay there, and finish out her final years in peace. Being a landlord IS about money and cash flow, of course - but it's not the only consideration. 

I also agree with what others have said, about how this reflects poorly on him, both professionally and personally. I mean, our former governor Schwarzenegger is speaking out about this, plenty of local politicians, etc. I am sure other landlords are looking at this and quietly cursing this guy for bringing so much bad publicity, given what the political environment for rental property owners is like in LA, the Bay Area and so on. Even in a big city, the world isn't that big. We can all say "I don't care what other people think", and sometimes that is the right mindset, but if you're going to be in certain businesses (this one for sure), reputation matters. I think he thought short term when he should've been thinking long.