All Forum Posts by: Adriaan Sierra

That's a bummer.  Thanks for the info, I'll check it out when I come there. 

I'll even forgive that you owe me the rent of a tenant for a property we exchanged hands on ;)

Hi y'all,

It's been a while since I posted here, the market has not been very open for a lot of business as of late.

I am posting here to source your collective expertise. I have an empty lot in the Jefferson area and I would like to build a duplex in it. I am wondering if any of you would have a recommendation for builders in the area. 

Thanks in advance. 

Perhaps you should take the fact that you are not able to find a traditional lender as a sign that you are not quite ready to start your investment in RE?

Perhaps something that you won't hear a lot here is that RE is a big commitment of a lot of cash and that with a lot of leverage it can quickly turn against you. 

It might make more sense for you to go to some traditional investment vehicles first and start your RE career further. If anything, it is likely that the opportunities will get better in the future.

I wouldn't optimize on the fronts you are worried about at the moment...

A very thorough report would cost less than 1K and can flag out problems that would cost tens of thousands of dollars. Optimizing your bidding strategy can save you a few Ks as well, but I'd argue you are better off paying full price at a great location rather than saving on this margin at a D neighborhood. 

I wouldn't worry to much about making those type of mistakes, you probably will make a bunch of them, part of the learning curve. Just make sure you buy at a right place and you understand the risks, what would make you be underwater and avoid those risks at all costs. That's what comes first. People that don't do that front and center don't stay in the game.

We usually make offers with contingency on what a house review will show up.

Usually the review focuses on big ticket items (roof, siding, etc) which would affect the price of the house. With that review our team (realtor, PM, us) make the best guess for what repairs would look like and we update prices based on that.  If the new terms are acceptable to both parties you move on to the next phase.

Obviously you don't want your offer to be shopped, but there is not much to do on this end (you could also make an explosive offer yourself, if you so desire). My two cents there is that people are too focused on the price contest aspect of the buying a house. You could optimize that margin to some extent, but that is not where you want to put your efforts. Focus on what prices would work for you and make sure you do not go above that. 

 nah fam. You just underestimate how much of a tin-foil hat, chicken little type I am :D

I'm pretty happy with my risk adjusted returns so far.  All I see on this forum is people buying headaches that will come either from the PM or tenants. All I know is that today my cashflow is about to meet my expenses, so I don't really need to work anymore.

Could I be better off by buying on C-D neighborhood? sure. Are we going to own significant portions of Cleveland? Probably not.

There is also this chance that we might pick up more inventory in the next few years, when all the people that are FOMOing now are underwater...

 oh?

do tell :)

https://www.ffl.net/

Overall, good communication is key. There might be a good middle ground for both parties. If not, I'm sure they will leave without bad feelings.

I would get a estoppel stating the rent. Always helpful to have things on paper

Not that I'm aware of, but the guide still pretty relevant from what I can see