All Forum Posts by: Ed Nelson

@Sarah Buchanan I am an LAPD patrol Sergeant. When Officers cause property damage in the scope of their duties within the city of LA I tell the property owner to contact city.

The city of LA gets sued for everything. I know a co-worker who pulled a guy out of a burning vehicle and saved his life. He ripped his shirt in the process and the guy sued the city for his damaged shirt. The city paid him the $20 for his shirt. Because it would have cost the city significantly more to take on the case in court.

Every city is different and every police agency handles property damage differently. I am sure you can get your money back if you call the city and ask them the necessary steps and forms to fill out. But you have to ask yourself if hours of your time dealing with city officials is worth a $200 door frame?

Good luck.

@Brian Garlington thanks for the recommendation. I hired Neal and he is almost done with the first unit. I am very pleased with his responsiveness and professionalism.

I have found it difficult to find a responsible contractor in Cleveland. Even getting a response from people has been difficult.

I own 7 properties and I have 2 recent vacancies in a multi-unit property that needs rent ready repairs for the 2 units. I have emailed and left voice messages for numerous contractors with very little response.

6 properties.  1 year.  Property Management (ReMax Haven).  All cash flowing except 1 property (4 flex) which I knew going in there would be multiple evictions and time to stabilize the property.  

Hello everyone! I started out in March 2018 looking to buy 1 property in Cleveland after doing some research. Eventually I set a lofty goal for myself to try and obtain 3 cash flowing properties by the end of 2018. I currently have 4 properties and I am under contract for a 5th. I currently own a 4-plex, SFH, duplex and a BRRRR duplex that is mid-rehab currently. I am under contract for a SFH now. All properties are cash flowing (except the rehab duplex). I decided I was going to go for it and not look back. I am am trying to get out of my W2 job and live on passive income from my rentals. I love my W2 job, but after 13 years I am tired and I will have a pension after 20 years. I can only retire if I am able to supplement my pension income. Now I want to replace it and exceed it before I can even receive a pension check.

My new goal is to double my properties and own 10 by the end of 2019.  I used BP to feel out the Real Estate investing crowd and it motivated me hearing success story after success story.  But after being burned in 2008 after I bought my first rental property I was done with real estate investing after that crash.  I did everything wrong.  What got me back in the game was 2 things...1) Mark Ferguson's book "Build a Rental Property Empire" and 2) listening to 2 different podcasts where I heard 2 people who were in my current profession resign because they were making so much money in Real Estate.

I attended my first meet up this week and it was nice to speak with people with the same goals and interest in Real Estate.   I share my story so the person reading this, who is where I was at in March, will know your goals can be attainable in Real Estate with hard work and dedicating the time to do the research.  I still have a long way to go myself, but I cannot wait for what the future will bring me with Real Estate.           

It was nice meeting you at the meet up tonight @Jared Lichtin.  It was my first time attending a meet up and I was glad I found one that focused on Cleveland.  

I am going to try and be there.  Thank you for putting it together.  

Section 8 rent is a golden ticket.  I seek out section 8 properties.  Guaranteed rent every month.    

I used a 203k loan 2 years ago on my HUD owner occupant Home. It is a hassle, but worth it in the end. Good luck funding a mortgage company that will do a 203k loan, very few lenders do them anymore. Once you can find a lender that will do it, good luck finding a contractor who is 203k certified. I called the only 3 general contractors in my area that were and only 1 called me back. The contractors have to float the construction costs for weeks or months and they don’t like doing that. They get paid in 3 checks (beginning, middle and end) of the project. The consultant never comes and looks at the property at all. He will be an off site guy who you email with questions. The loan is very expensive with thousands and thousands more in closing fees associated with the construction loan. I did a complete Home rehab. New house basically. Cost of construction loan was $77k. But it increased the value of my home by about $150-$200k and I didn’t pay a dime out of pocket for any of the construction. It’s a great program if you cannot afford a rehab yourself. But you end up paying more in fees from the lender and the general contractor is more expensive because he knows upfront he is getting paid $77k and the cheaper he can go on the rehab the more he makes on the project. My advice and if I had to do it again. You only get one chance to meet with the contractor before he writes a bid for the scope of work and cost which is submitted to the lender. On that written quote specify everything under the sun. Name brand faucets, shower heads, paint, cupboard hardware. Once the bid was accepted it was a constant back and forth about how if I wanted to “upgrade” to nice hardware it was going to cost me extra. Because the 203k loan itself has a 10% contingency attached for “unforeseen” costs. The contractor knows this. And believe me he will nickel and dime you for every bit of that 10%. You don’t have much bargaining power because you have to use that contractor. The only power I had was the bank issues you the checks in your name which are then signed over to the contractor. I told the guy I was not signing over the final check until he fixed everything we had agreed upon. He ended up tearing down and re-doing my bathroom which one of his subs screwed up. He wasn’t happy but it needed to be done. Hope this helps for those looking for a 203k loan.