All Forum Posts by: Dan Sarao

Welcome aboard!

And I agree with Bob, Cleveland is a damn solid market. Give it some consideration. 

Also population growth into Florida, alongside still relatively affordable prices in some areas of Florida make it an attractive market as well.   

There are no shortage of attractive markets, if you are comfortable investing remotely, as others I am sure will tell you more of them.  Just find one that makes sense to you. 

Have fun as the possibilities are endless.  
 

Mark, welcome to the investing world! Where are you from and when are you looking to close your first deal? 

@Bryan Harvey - Not sure if I missed it, but how many units would the proposed structure have and what location are you building this? From the build cost, this seems like it would be a 1 bed at or less than 1000 ft2?  Maybe understanding what the building is and where you are building would help me understand why it would be better to build vs. buy something?  The building process will take up months that you could be earning money.  If the economics are such that it is cheaper to buy existing vs. build, I don't see why you wouldn't just buy an existing property. 

Due dilligence, due dilligence, due dilligence. I have to agree with Robert, it’s not worth the time, money or hassle to pursue legal action as you will spend a lot more than a few months lost rent if you are even successful. Maybe try working with them out of court while kindly letting them know you are prepared to bring legal action against them and see if they make any concessions.  Short of that evict them and start fresh. 

Dennis, I think that's extremely relevant, and I feel that is a large cause of it. It's the build up of fear coming from the unknown inside a person's head that causes them to freeze and not take any action at all.  I went through this as well until I got to the point where I was more driven to act by my frustration of not acting (and some other external changes that were going on) than I was driven by the fear of failing and losing money.  Its so true though, once you pull the trigger and act, whether it turns out perfect or not so perfect, it becomes so much easier going forward and you learn so much.  Diving in and taking imperfect action with just enough information is far better than taking perfect action with all of the information. 

@Nicole Heasley Beitenman - as I am getting thrown into a group without you knowing anything about me or who I am, just to let you know I have been investing in Cleveland for quite some time, have travelled to the city several, several times over the years and currently operate a business in the city with a local partner. Also, I took his questions, and my original answer as something that was applicable across markets in general.  

I agree he should work with locals, I suggest that to everyone as that is how I got comfortable and still feel Comfortable Investing in the market, but I also think all individualS should have the ability to give an opinion and contribute. As a whole let’s not silence out of staters assuming they know nothing. Everyone in this forum is interested in the Cleveland market, and honestly the way the investor pool in Cleveand is going, there may be more Long distance investors than local Cleveland Investors soon (If not already).

@John, unless the street is an abnormality, the rental demand should not be an issue in the Cleveland Heights/University Heights area.Selling it or getting any appreciation in those conditions, maybe. 

What do you consider a ton of foreclosures? Cleveland definitey has a “few” vacant properties and foreclosures..

It also depends on what you are trying to do with the property. A large number of foreclosures hurt your resale value as it hinders perception and may affect appraisal value.  If you are looking to hold it as a cash flow property maybe appreciation doesn’t matter to you. If you are looking for appreciation, then an area with a history of a lot of foreclosures might play a negative for that goal. 

I know this is out of date, but I have worked with MB Bank (now acquired by Fifth Third) that did loans down to $25K. I have a contact there if anyone needs it. I know finding lending for these small type loans is difficult.  

Thanks for the feedback everyone. Anyon actually in this position have a thought on why they can’t pull the trigger? Bit of focus group intention behind my post and question.