Interested in Note Flipping / Fix & Flip Strategy / in Cleveland

[Mitch Franklin]

I'm originally from University Heights / Cleveland Heights, live in Hawaii now and am beginning to research purchasing properties in the Maple Heights, Warrensville Heights, and surrounding areas. 

My plan is to both reach out to both motivated sellers (marketing / text / direct mail) and wholesalers to purchase houses with cash, then sell the house (possibly after a small repair) and carry the note long enough for seasoning so I can sell the note at a reasonable discount. I also like the idea of building a bit of cash flow by carrying a 2nd note and hang onto it for the monthly income.

Deal specs to include:

*Down Payment – 20% or more (10% Min.)

*Credit Rating – 650+ ideal, 600 minimum

• Interest Rate – Fixed 9-10%

• Term – Fully Amortizing (10 to 15 years)

• Income – Ability to Repay (45%+/- Debt to Income Ratio)

• Reserves – Taxes & Insurance

• Servicing Through A Licensed Third Party rolled into payment

Another potential strategy would be to acquire houses and then fix and flip. I haven't begun building out a team so I'm a bit away from jumping into this strategy.

I'd like to connect with other investors who are doing this in the Cleveland area to compare notes and refine strategies. Please reach out as I'd love to hear your thoughts or at the very least talk some Cleveland Browns football.