Wholesaling Cleveland, OH

[Henry King]

I started my real estate investing career in Jan. 2012. My focus has been on wholesaling to generate capital. So far I have only completed one deal on a commercial property. I sort of feel like I've hit a brick wall and I would like to network with other wholesalers in the Cleveland area.

[Irina Belkofer]

Yes they do - you can't pay for second assumption. First time you buy as a wholeseller you assume violation from POS and leave the escrow with the title company - 50-200% from the amount of repairs.

Next, you have to correct the violations - sometimes replace the roof and repave driveway - and only after inspection from the City released your escrow and final inspection is "clear", you can transfer the title.

Then it will be a flip with all that short term capital gain taxes. Do you want all that as a wholeseller? It's totally different business

No, you can't pay for that, unfortunately.

My client had this problem - the first buyer who assumed violations, couldn't close. It was HUD property, we placed the bid and won. During the assumption, the City if Euclid refuse him to assume the violations because it was filed by another buyer. It took us quite few weeks to go through all these procedures to reverse original assumption.

As for living/renting - not the case also, it's illegal to live in the property until you obtain clear POS and rental certificate from the city.

These POS inspections slowly getting admitted to be illegal practice (Bedford Hts won the litigation and get all these fees back) but majority of cities in East suburbs are affected.

Obviously, it doesn't apply to East Cleveland or inner city - you can still buy houses for $100 and sell for $1K ;)