All Forum Posts by: Dan Mitchen

Most properties that hit the MLS or Loopnet have already been shopped around to the big well-known commercial investors in your market, therefore if they passed it's probably not a good deal. I have ownership in 100 units (30 unit, 22 unit, and 48 unit) by calling "For Rent By Owners" asking if they want to sell and I started in October 2018. Hardly anyone does it and it's a great way on finding an off market/good deal. Good luck!

Investment Info:

Single-family residence buy & hold investment in Cleveland.

Purchase price: $48,000
Cash invested: $1,050

Just purchased this SFH 10 minutes from downtown Cleveland. Purchased for $48k, will put around $30k into the rehab, and should appraise at refi for around $160k. I'm using private money who's funding the PP and rehab at 100% at 2pts and 7%. Instead of using this as a standard rental, this will be used as an Airbnb to 2x+ monthly cashflow. Deal was found driving for dollars.

What made you interested in investing in this type of deal?

All-in for 49% of the ARV. Cleveland is a great market for Airbnb, so I drove for dollars in my area I;m looking to acquire more property.

How did you find this deal and how did you negotiate it?

Driving for dollars, skip traced, cold called the owner, and then negotiated the deal directly with the seller.

How did you finance this deal?

Private money.

How did you add value to the deal?

Buying distressed and rehabbing.

What was the outcome?

Rehab is in progress and will be ready in around 30 days.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a licensed agent myself.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $72,000
Cash invested: $7,200

I came across an off-market property 300 yards from a lake. I've always had a goal of owning a property on a lake, and the fact that there's no cell service or internet in this location made it perfect for a vacation getaway! So I thought "How can I get someone to pay for something that I want". We now Airbnb it and go down to enjoy it whenever we'd like.

What made you interested in investing in this type of deal?

I always wanted a house on or near the lake.

How did you find this deal and how did you negotiate it?

I found it off-market through Facebook and gave them they're asking price because I wanted it!

How did you finance this deal?

Conventional financing with 10% down.

How did you add value to the deal?

Turned it into an Airbnb where my guests pay for something I can use anytime.

What was the outcome?

See above.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

A great mortgage lender!

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $830,000
Cash invested: $5,000

Purchase price: $830k
Rehab: $115k
Private money raised for down payment & reserves: $230k
Stabilized value: $1,857,000
Refi proceeds using BRRRR: $355,000
NOI: $131,000

What made you interested in investing in this type of deal?

Doing a large deal 1 time and being paid the rest of my life for as long as I own it!

How did you find this deal and how did you negotiate it?

Off-market through cold calling apartment owners. We put an LOI in place and re-negotiated after our walk-thru during due diligence.

How did you finance this deal?

Private money for our down payment and reserves. Short term debt at around 7% interest and will refinance with long term debt after the project is stabilized.

How did you add value to the deal?

Forcing appreciation by turning the units and increasing rents to market rent.

What was the outcome?

All-in for around 50% of the stabilized value and will refi in 12-18 months.

Lessons learned? Challenges?

Raise private money before you find your deals!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My commercial mortgage broker.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Ravenna.

Purchase price: $1,750,000
Cash invested: $300

Just closed on a 70 unit apartment complex near Akron, OH. We bought the property for $1,450,000 & will be putting in just over $200,000 towards the rehab. We'll refinance the property in 12-18 months, give our down payment investor a great return on their investment/give them equity as well, pull out tax free loan proceeds once we refi, and have a NOI of around $199k once stabilized. I'm looking for more value-add complexes and partnering with anyone who comes across any deals off-market!

What made you interested in investing in this type of deal?

Passive income.

How did you find this deal and how did you negotiate it?

Off-market and negotiated with the seller directly.

How did you finance this deal?

Commercial non-recourse construction loan.

How did you add value to the deal?

We'll be putting in around $200k to the property (unit turns and exterior), bump rents up to market rents, and should appraise for around $2,3000,000 once stabilized.

Definitely recommend David streeter. He’s done quite a bit of work for me and works with a lot of the bigger players in Cleveland as well.

I have nothing bad to say about llp! They were solid whenever I needed to deal with them.

This is awesome! Can you PM me the details?

@Lesley Ray I highly recommend Dawn Hryshko. PM me if you want her info!

@Siqi C. can you show the other half of the screen shot? Here's what one of my go-to title reps sent me:

"HB 920, Rollbacks and CreditsThe HB 920 reduction factor, mandated by Ohio law, is designed to keep tax revenues stable when property values increase or decrease. The factor that prevented your taxes from dramatically increasing when property values were on the rise will now keep your taxes from significantly decreasing despite declining property values. This reduction factor will keep the revenue to our schools, cities, libraries, etc. at nearly the same level as originally approved by the voters. A portion of your tax rate is not affected by the tax reduction factor and will result in a slight decrease in your tax bill. As part of the state budget, passed in 2013 the ten and two and one-half percent rollbacks will no longer apply to new levies that are enacted after the August 2013 election. These non-qualifying levies include additional levies, the increase portion of renewal with increase levies, and the full effective millage of replacement levies. Levies that will continue to qualify for application of the rollbacks are levies approved at or before the August 2013 election, inside and charter millage as they appear on the 2015 tax list, renewals of the qualified levies, and the substitute of qualified school district emergency levies under Revised Code section 5705.199.The rollbacks are now referred to as the Non Business Credit and Owner Occupancy Credit.

Homestead Exemption:

Property owners residing in their home who are aged 65 or older and/or permanently disabled may be eligible for the Homestead Exemption. This exemption reduces your taxable property value."