All Forum Posts by: Jonathan Plant

**UNDER CONTRACT AS OF 8 AUGUST 2015**

THANK YOU ALL WHO SHOWED INTEREST.

NEW APPRAISAL VALUE AS OF 31 JULY 2015 - $80,000 - according to county appraiser. 

$28,000 FIRM WITH BUYER COVERING ALL CLOSING COSTS.

Cleveland, Ohio SFH -- Asking $28,000 = 35% OF APPRAISAL PRICE!

This Single Family Home sits in the Lee-Miles neighborhood of the Cleveland metropolitan vicinity. This is a long standing development which maintains a low crime area.

Specifics: 17216 Throckley Ave.
- Cuyahoga county
- 3 Bedroom
- 1.5 Bath
- 1,363 sq'
- 2 story Colonial
- Built in 1941
- Basement 312sq' finished
- Slate roof
- Aluminum siding
- 2 car detached garage 360sq'
- 6,240 sq' lot (.14 acres)
- County Appraisal: $80,000
- Annual Taxes: $2,028.28 ($1,014.14 first half)
Neighborhood single family rentals go for $700 a month

COMPS:
17211 THROCKLEY: SOLD FOR: $72,000.00 COUNTY APPRAISAL: $67,500.00
SOLD AT 107% OF APPRAISAL

16712 THROCKLEY: SOLD FOR $73,000.00 COUNTY APPRAISAL: $75,500
SOLD AT 97% OF APPRAISAL

17511 THROCKLEY: SOLD FOR $90,000 COUNTY APPRAISAL: $79,500
SOLD AT 113% OF APPRAISAL

Dropped the price to $26,000 this morning and received one contract to cover all closing with that price. 

COMPS: - I use county records to verify with what internet says.

17211 THROCKLEY: SOLD FOR: $72,000.00 11/25/2014 - 

COUNTY APPRAISAL: $67,500.00 - SOLD AT 107% OF APPRAISAL

16712 THROCKLEY: SOLD FOR $73,000.00 8/5/2014

COUNTY APPRAISAL: $75,500 - SOLD AT 97% OF APPRAISAL

17511 THROCKLEY: SOLD FOR $90,000 12/12/2014

COUNTY APPRAISAL: $79,500 - SOLD AT 113% OF APPRAISAL

If buyer pays for closing and is able to close within 1 month - $28,750 - bottom line.

This Single Family Home sits in the Lee-Miles neighborhood of the Cleveland metropolitan vicinity. This is a long standing development which maintains a low crime area.

Specifics: 17216 Throckley Ave.

• -Cuyahoga county
• -3 Bedroom
• -1.5 Bath
• -1,363 sq’
• -2 story Colonial
• -Built in 1941
• -Basement 312sq’ finished
• -Slate roof
• -Aluminum siding
• -2 car detached garage 360sq’
• -6,240 sq’ lot (.14 acres)
• -County Appraisal: $71,000
• -Annual Taxes: $2,028.28 ($1,014.14 first half)

Neighborhood single family rentals go for $700 a month.

Submit all bids to: [email protected]

Attention: Jonathan Plant

Here are a few questions that can help you decide:

1. Asking Price compared to Market Value.

2. Recent Comparable multi units sold in that market. Look at the county assessor’s value on property and compare it with others that sold.Did the ones that sell come close to the assessor’s value?

3. What is currently for sale?

4. On the 3 unit, what is the current rents? What is the surrounding market rents? Is it close? If possible, can you raise rents 10 to 15% a year while improving quality of life for tenants to bring it up to market?

5. On the 4 unit, what is the current market rents for comparable size unit? How soon can you get a tenant in after rehab?

6. Will you be using a Property Management Company?

7. What are the total required expenses for both properties?Take the rents and minus the required expenses (trash, water, sewer, community electric, taxes, insurance… (Don’t include your mortgage, if you will have one).

8. What is your short and long term investment goals?

9. What specific timeframe are you expecting to hold this for?

10. Do you have at least two exit strategies if something crazy happens to get out of the property or turn it around?

11. Do you have six months of expenses put aside?

These are a few things you can ask yourself to ensure you have a plan.It is better to have a plan when you don’t need it than not have a plan when you do need it.

Jon

I've researched quite a few foreclosures and yes, there are times where there are liens 10 X the market value of the home. Not through a REO on Auciton.com though. It states that the properties are free and clear. I do call the title company and the county office to ensure and without mistake, the bank has had the judgments and liens wiped out during the foreclosure deal for a clean title. Now, at the courthouse steps on a foreclosure, different story. This is why I buy through the auction sites online...

Yes there are good deals on Auction.com. I purchased 4 of them in 2014 in 3 different states and have one currently under contract at the moment. I love them because they are REO properties which means that they are all free and clear of liens. The one under contract had $125,000 of liens on it. Crazy, huh... Don't read too much in their contracts because they are written to cover all the states that they operate in and some information is contradicting.

Always do your due diligence with the property, comps and assessor's office.

Good luck.

I like the BRRR method but it really boils UP to your investment strategy. How do you want real estate to work for you? Are you a buy, rehab, rent and refinance with the intent to hold for cashflow as many as you can? Are you a buy rehab and flip for great returns quickly to move on to the next? Are you a buy and flip as is for small profits? There are many ways this can be analyzed...

I can tell you what I do but, my past and future is different than yours and thus my strategies in my investments will also be.  I wish you a great real tangible investment journey.

Rembert,

Can you send me the numbers? Cap rate, comps, asking price, county appraisal, taxes, what expenses does the owner hold, NOI...

What are the responsibilities of partners, how is the profit split? How much are you trying to raise?