Cleveland, OH Market Conditions?

Question

Hey BP Community,

My business partner and I have been searching for properties, connecting with investors, and working diligently to find some undervalued properties in the western parts of Cleveland. Our cash buyer partners are hungry, but we've been unable to feed the craving.

I plan on driving down to Cleveland in a few weeks to do some Driving for Dollars, but I wanted to get a feel from you RE geniuses about the market conditions in Cleveland.

Has it been difficult to find those motivated sellers? Are asking prices reaching close to Retail? Which areas are seeing the most activity these days?

Do any of you do direct marketing in Cleveland? If so, how has this worked out for you?

Any help is greatly appreciated. It has been tough starting out in this business, but with the help of knowledgable individuals in this community, I feel like well get it up and running.

Ryan Arth · Answer

As @Bob Collett said, lots of competition here. I am sure that you have Cleveland as a keyword. How many "HOT DEALS" hits are you getting from it per day right now?

Lots of national/international attention brought by BP as a conduit for people from markets that are at a higher price point. There are also lots of sales people on here pushing the issue for volume, as they see the opportunity. Supply and demand.

Long term who knows the,complete economic impact. Many markets go through these cycles. Here you are having upward pressure on pricing by forces from outside the metropolitan area.

I am focusing elsewhere, as I don't like competitive bid situations/ auction fever where the other party is judging it based against a comparable investment in their backyard three states away.

The same local benefit applies as anywhere, you go 25+ minutes out from city center and you lose that unnatural competition.

All the best in your investing.

Bob Collett · Answer

Vuk

Buy & hold or fix and flip? Required ROI?

They are still out there, but lots of competition from investors and owner occupants.

Feel free to reach out to me for a reality check... lived on west side my whole life.

Good luck

Vuk Dulanovic · Answer

Hey all,

Thanks for all the info, really appreciate that.

@Federico Gutierrez I will consider attaining my RE license. But at the moment, this is not really possible in my situation. Regardless, I still believe I am operating within the confines of the law. But I appreciate you pointing that out in any case.

@Jonathan Plant I would love to speak with your broker contact to pick his brain and understand how he sees the market. By the way, are you buying in Cleveland remotely from Virginia?

@Bob Collett Hey Bob, thanks for reaching out. I'm sure I could learn a lot about Cleveland and the surrounding areas with your long term history there. PM me and we can chat when you have some time. Right now, I'm focusing on presenting ROI values of 15-20% to my buyers. I feel more comfortable with these types of returns, and ideally is B+ neighbourhoods.

Ryan Arth I love the enthusiasm! I am super excited to hear you say such great things about the Cleveland market. Makes me feel good that I chose this city as the starting point for my REI career. I'm wondering, what kind of marketing do you do to get your leads? I'm sure already being established as a turn key provider helps, but any suggestions or pointers are appreciated.

Thanks guys! I'm learning something new every day.

Tom Ott · Answer

Hello Vuk,

Being from Cleveland I can tell you that right now that area is experiencing a renaissance! There are tons of people who are moving into the area and looking to stay. When you come down, feel free to take a took for yourself.

I wish you the best of luck while you are in town.

Happy Investing!

Steven Gesis · Answer

Vuk, Cleveland is amazing, it is buzzing and electric like never before. Good problem to have with your cash buyers :)

Market conditions are up!

Do not do any direct mailing or driving for dollars, so cannot offer any insight on this.

Much luck to you and great choice.

Jonathan Plant · Answer

From what I have experienced in the Cleveland market, there are areas that are decent to purchase from and areas that are competitive with the Police department. As with most markets in respect. The attractive areas that you would want to invest, are usually covered by investment teams that are using the fine comb now to locate properties. I have used Auction.com and Homesearch.com to locate my properties. Of course, thoroughly research the area and specifically the part of the street to see the risky areas to invest and not invest. I know of a great seasoned real estate broker that has bank connections and he knows where in the market to invest and specifically where on what end of streets are best. Hope I've helped and if you need anything, just ping...

Federico Gutierrez · Answer

Get a RE license and join a brokerage, even if it is remotely you'll be buying and selling within the laws

Cleveland, OH Market Conditions?

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