All Forum Posts by: Braulio C.

Thanks Mike, looking forward to this event tonight.

Hey Alex, I am from CA myself and invest in Cleveland OH mostly duplexes’ and I am going to start investing in sfr in the next 2-3 months. The distances is definitely a challenge, but if you take the time to go out to your state of interest and establish relationships you can certainly form a good team. I am not saying it would be easy, but it can be done.

Let me know if I can be of assistance, I am happy to help.

Don't give up, keep at it and good luck!

Hey Jose, I experienced the same thing myself in Kings County. Although I don't invest in that area for that particular reason I still have a few rentals in the area. I started investing out-of-state maximizing my profits way better then Califorania. It's hard to beat local people that are very well connected. Hang in there and like Brian suggested look where there is no competition. Good luck. -Braulio

Hey Linda, I am a systems engineer in the south bay and I myself would never be able to invest in the bay area or anywhere in California with good cash flow. So, I been investing out of state and it's been a chanllenge, but slowly but surely it's starting to move forward.

GM, I have done something similar in the past. Try looking up on the google "Joint Venture Agreement". You can find some templates online.

I hope this helps..

Hey Harry, I have never sold a property on a land contract AKA "contract for deed", but I have sold 3 properties in the last 2 years with owner/seller financing. I was going to use a lawyer at the time, but one lawyer I consulted with told me to save the $$ and go through a title company. He said if trouble arised from a non payment to then call him. I consulted with a title company and they handled the process. It's not very difficult at all. I would suggest consulting with a local title company.

What state are you in?

Hey Rick,

I am with Kyle and the rest of the BP members. I have been a landlord for over 10yrs and I can speak from experience, MOVE ON. I have made that exact mistake from my desperation of renting it fast. But that has only cost me way more in the long run.

In situations like this what I have done in the past is asked for a double deposit and first month’s rent, that way I can at least have $$ for the eviction and come out even in case something went sideways. Don't get me wrong I've had good luck, but I've learned my lessons the hard way. I have one unit right now empty and for some reason I am having a hard time renting it. I never had that problem in the past in that particular area. One thing is for sure I am going to wait for the right tenant.

Good luck..
..

Brandon Thanks for the personal thoughts. I am a big fan!

I am entering into a joint venture with a local contractor/landlord who will be managing and doing most of the ground work in the floor. This is one of the main reasons why I am willing to move forward.

Thanks B, I am going to get a haircut today and place a pic on there by tomorrow. Thanks for the Tip!

Cheers...

Hello,

Is anyone investing in the West side of Cleveland OH? I been doing my research for almost a year now and during the process of pulling the trigger I contacted a few local lawyers to assist me in creating a joint venture with a contractor I have been working with in Cleveland. About 6 out of 10 lawyers have been extremely skeptical about me investing in the area. In fact I feel like they were upset that I was coming out of state to invest in the local market. They claim the area is very depressed with low employment and they feel is NOT a wise investment.

I must mention that I did visit the area about 2 months ago and during my research I learned that the area is crucial/fundamental because areas can change drastically from one street to another. I have read terrible stories of out of state investors been taken advantage. I am definitely staying away from some of the bad areas. I guess my advantage is that I am partnering up with a local contractor that knows the areas and is doing well himself with his rentals.

In addition part of my main reason why I am investing in the W. Side of Cleveland is because I know a few investors that are doing really well buying cash flow duplexes for about 15-20k with about 5k in rehab cost a total of about 20-25k per duplex. They rent them quick and gross about 1200-1300 and net about 700 a month per duplex. That's a 33% COC or ROI on your investment. Compared to California 7-15% not to mention the amount of the investment:-(.

Now, if you ask me that's a great cash flow investment. What am I a missing? Is the area really that bad? Anyone out there investing in the same area that can share some thoughts/opinions would be very much appreciated.

Happy Holidays Everyone!!!

And thanks for everyone here at BP for the wonderful sharing of information.

-Braulio

Look up a Joint Venture Agreement there is a few templates online you will find. That will help you keep a contract between you and your family/partner. It seems to have suited me well for both parties to have a piece of mind.

In regards to good/bad idea? In my opinion, I would make sure they understand the risk and unforeseen timelines that need to be pushed out due to surprises with the project/rehab. At least that's been my experience.

Marco, have you thought about leveraging a private lender for your buy and hold properties? Your ROI is much higher when you leverage the funds. With the rent ratio you describe you can qualify for a loan fully amortized over 5 years for a cash flow property. I've worked with a private lender in the past that has helped me buy my cash flow homes when all my funds are tied up and I don't want to miss out on a good deal. Contact me for more information.

Good Luck and keep me posted.

-Braulio