All Forum Posts by: Stuart Gardner

I know you're looking in the Worcester area, but if you do a meet up in the Boston area, let me know. 

I agree with all the books suggested, especially Landlording on Autopilot by Mike Butler and The Book on Rental Property Investing by Brandon Turner. 

However, if you're looking for a more in-depth understanding of the numbers book, Real Estate Finance & Investments by William B Brueggeman and Jeffrey Fisher Professor, is a great one too.

Thank you to everyone for all your insights. The points made have raised some interesting thoughts, with some common themes. 

I'm going to give it some further thought and may follow up on some of the points at a later date. 

@Mateusz Prawdzik Not knowing your market or area, would you say that becoming that "quality band name" is going to be challenge with multiple barriers, or is it going to be relatively easy given your current trajectory? Essentially, are there market leaders that you are going to have to beat out?

@Ben Raygor

Thank you for the advice. Sadly the financing didn't work out, but I appreciate the insight.

@Anthony Gayden

I see what you're getting at. The stereotypical image of a "landlord" being some lowlife looking to nickel and dime everyone they can.  In your opinion, then, do you think this image will ever change?

@Mateusz Prawdzik

You yourself, as a developer and investor, do you have a set of standards/values that you hold yourself accountable too? I understand that we as RE investors add value to the land and towns we are involved in, but can your personal/business brand image be seen in everything that you are involved in? 

Hey @Anthony Gayden,

Thank you for your response, and you raise some good point. 

I know this may seem like an ethical question, but that is not my intention. Value creation in business is not about ethics, it's about what separates you from your competitors and why customers choose your product over others. Thus, what I'm trying to understand is how one could position themselves in a market to ultimately produce a product that is far superior to those around them, whilst ensuring that others can't ride on your success. Which is customary in hot real estate markets. (i.e.: Landlords with inferior products still charging premium prices.) How do you set yourself and your business apart from the competition in a market where it feels like poor management is still rewarded due to high demand?

To your side note, have individuals specifically questioned you about the ethics of profitability or is this more of an intuition that you have about how the business of real estate is viewed?

Also, it is an interesting point you raise: "In no other business does anyone question why the business wants to make a profit". Do you think that this is such a prevalent question in the realm of real estate because it is such a personal business? That bad press and stereotypes of real estate investors create distrust? 

Hey @Oscar Pinto, 

Thank you for your response, and I totally agree with you. Providing a well maintained and updated property makes for happier tenants and higher rents. However, that seems to be more of the exception than the rule, at least in the areas around me. 

I know this is a large macro question, but doesn't it seem like there is something wrong with the real estate industry if a "landlord" can "run their business" for years without maintaining or updating their properties, and still get market rents for something that is way below what should be market standard. And, I know, supply and demand, people always need somewhere to live, but in a health industry, sub-par businesses will eventually fail. 

Therefore, do you think you could create a standard of value creation that would put enough pressure on the sub-par property owners to either meet the standard or fail out of the market?

What Value do we Add?

I pose this question, because, with real estate being one of the few wealth building vehicles, I find myself asking, "Am I the only one that benefits from it?" For in every business, all of the stakeholders that are involved are there to gain value. However, the tenant (the customer) doesn't seem to get much out of the RE business.

Now, I know many of us will argue that the value our tenants get, is the opportunity to live in our properties, but surely there is more value that we add than just providing a roof over their heads.

Thus, if you as an investor, believe that your business practices and investments are adding value to all the stakeholders involved, then please share. I am very interested in learning and understanding how value is created and added to the Real Estate Investment World. Ultimately leave the world a better place. 

Ok, so we have found a property. It looks good on paper and in person, however, the one unit has a tenant that was once the owner of the property and since has been renting it. They would like to stay after the property is sold. All the units are way under market, and need to be increase to make the property worth it. Should we consider letting the tenant stay, or is it better to start with a new set? What experiences has anyone had with this type of situation and what would you recommend knowing what you know now?