All Forum Posts by: Christopher Blanco

@Abdul Azeez I have been leery of venturing outside of my own side of town, let alone out of state! :) This is my first deal, and while I have a decent amount of seed capital, I don't want to lose it on my first deal! I think i might want to get a couple in state done first. 

@Patsy Waldron well if you ever see a good deal that you don't want or cant do, send it my way. I am sure we could work out a finders fee if I close! 

Just to evaluate, I use:

8% Vacancy

10% PM

3% Repair

8% CapEx

The thing that kills the deal most for me is property taxes in these areas. 

@Federico Gutierrez right now I am looking in the eastern suburbs. I don't know a lot about the west side. I really don't have the appetite for the east side D or F  areas. I would look East of Cleveland heights. My main areas are the Heights: Shaker, Cleveland H, University, South Euclid etc. 

I have been working with Lima One Capital, US Capital, and Ifergane consulting. All are pretty similar as far as rates an offerings. As a new investor, expect 12.5% and 3-4points

I don't want to sound like I am whining, because i am really not. I am working hard at finding deals, I guess I am just wondering where the line is between persistence/consistancy and insanity (doing the same thing over and over expecting different results)

@Federico Gutierrez For flips I am looking at 10-20% profit depending on the work. For rentals I am looking for $100 or more in pocket cash flow after refi PITI, vacancy, PM, repairs, and capex. I don't think that is unreasonable. Do you?

I am really trying to stay positive but I feel like I have been spinning my wheels for the last 3-4 mos. I have evaluated 100s of properties , toured and budgeted well over 50 properties, put offers on on 7 or 8. Each offer was either beat out or ignored. I thought I had a house in Shaker this week and got beat out last minute by an all cash offer, even though mine was more. On the rental side finding houses that cash flow with high property taxes is next to impossible. 

I am marketing to Probate cases as well. I developed a program that will pull names and addresses in my target area. I got 3 responses from my first mailing: 1 angry person, 1 nice person but wanted off my list, and 1 apartment that slipped through my screening. :( I know it takes longer, but I was hoping for at least 1 lead on a 130 letters. 

I am on several buyer lists, but most of the wholesaling offers I have received are WAY high on ARV and way low on renovation.

I just feel frustrated. I have a lot of passion, I feel like I have a lot of knowledge. I have a contractor a realtor and 5 or six lenders ready to go, I just feel like I am missing something! Any thoughts or ideas?

Most lenders want to see 6 months of payments in reserves. 

Have you ever owned a property before? Not for investment but personally? If you only have 2500 saved up, then save some more before you purchase a property, even for your self. A property is expensive, things break, and if you have no reserves to cover it, then you are going to be in trouble early on. If you want to expand quickly then you need reserves to work with. I am a new investor and I have $60K to play with and I can feel the pinch with that much money...

You can purchase Radiator screens if you are worried about it.