Looking to start investing and building a team in Cleveland

Looking to start investing and building a team in Cleveland

Toronto, ON · Member since 2018 · 102 posts · 61 votes

Hi BP Fam,

I am looking to invest in the CLE market and seeking referrals to build a team there. 

Strategy: I am a fan of the BRRR strategy and looking for 2-4 units in B-C neighborhoods (thanks to James Wise Cleveland grading guide) where I can do some light rehab and refinance after 3 months. I'd normally finance the initial purchase but able to buy in cash (quicker) in exchange for additional equity. With this criteria, I have signed up with various wholesalers for off-market deals and been analyzing them to have a feel for the market.

Team members I'm looking for:

1. A reputable contractor who can help verify property condition and provide rehab estimates. This would happen after I have the deal under contract and I will be compensating them for their effort to provide the estimate. Hopefully I can continue to work with them once I go firm.

2. A reputed property manager who can help me with providing rent estimates and able to manage the property for me. If they can provide a comparative market analysis and help source off-market deals, that would be great asset.

I would love to get some recommendations from the experts already in this market.

Also, please let me know if I am missing anything. All feedback is welcome and appreciated

Thank you.

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  • Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Your agent should be able to get you in touch with a PM, and the PM should be able to refer you to some good contractors

    As for the BRRRR strategy: If you're buying in cash and plan on using delayed financing, then you can only get back the lesser of 70% LTV, or what you paid for the property, including closing fees. You'd have to get creative with the closing side of things to pay cash and still do a BRRRR in less than 6 months. If the title company can include the purchase price + rehab costs in the HUD-1, then you can do this. This isn't common and not every title company will do it, or have let alone heard of this strategy.

    Here is another way:

    https://www.biggerpockets.com/...

  • Toronto, ON · Member since 2018 · 102 posts · 61 votes
    5y

    thanks for the insight Bob! I have browsed through various threads to gain more knowledge of the CLE market 

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