All Forum Posts by: Eric Prescott

Long story, but he stole tens of thousands of dollars from us and other investors and contractors. Likely that he faked a robbery at a construction site, though I can't prove it, but it was after that when things went downhill. He was sued by the state on various charges like telecommunications and identity fraud, but was slapped on the wrist. I was not able to sue because lawyers thought he would be uncollectable and the county prosecutor's office stated that since it was a breach of contract it was not a civil matter. 

More specific: He stole months of rent and utility payments from a tenant (and threatened to evict her!) so we didn't see rent on that unit until we got a new property manager involved, and so we are still digging out from the lost rent and back utility payments. He also did a very superficial rehab job, so we spent several thousands more on the unit when the new PM took over. I had to pay contractors he stiffed in order to remove liens and refinance the property. 

Same guy handled a triplex rehab (the one with the theft), and that's where he took money that he simply pocketed or used in some sort of Ponzo scheme to pay off other debts (I have no way to know, but the money did not go to contractors or to continue work at the site). Much of the work that was done had to be redone, especially due to stolen wiring, cabinets, etc. I basically ended up paying for the rehab twice and lost tens of thousands of dollars to make sure my lenders were all paid back. I also had to pay contractors he stiffed in order to remove liens so I could sell the property.

Long story, but he stole tens of thousands of dollars from us and other investors and contractors. Likely that he faked a robbery at a construction site, though I can't prove it, but it was after that when things went downhill. He was sued by the state on various charges like telecommunications and identity fraud, but was slapped on the wrist. I was not able to sue because lawyers thought he would be uncollectable and the county prosecutor's office stated that since it was a breach of contract it was not a civil matter. 

More specific: He stole months of rent and utility payments from a tenant (and threatened to evict her!) so we didn't see rent on that unit until we got a new property manager involved, and so we are still digging out from the lost rent and back utility payments. He also did a very superficial rehab job, so we spent several thousands more on the unit when the new PM took over. I had to pay contractors he stiffed in order to remove liens and refinance the property. 

Same guy handled a triplex rehab (the one with the theft), and that's where he took money that he simply pocketed or used in some sort of Ponzo scheme to pay off other debts (I have no way to know, but the money did not go to contractors or to continue work at the site). Much of the work that was done had to be redone, especially due to stolen wiring, cabinets, etc. I basically ended up paying for the rehab twice and lost tens of thousands of dollars to make sure my lenders were all paid back. I also had to pay contractors he stiffed in order to remove liens so I could sell the property.

 Where do you go to request the reimbursement?

Hello BP Community,

I'd like to connect with you to get your knowledge and experience on any of your BRRRs in Ohio. It can be anywhere in OH -- Cleveland, Columbus, Akron, or anywhere, and here's what I'm specifically looking for:

1. What are some of the cities in OH that you would recommend to invest? Cleveland, Akron, Columbus is all I know.
2. I've always had an assumption that OH is a Ca$h Flow market and not an Appreciation market. I mean, once we get off-market property and do some rehab, we can force appreciate it, but what about the later natural appreciation?
3. When you invest in OH, I've heard some good schools, and some decent employers like Progressive, Cleveland Clinic etc. -- but, which one would you choose and why? Coz Strongsville has good schools, but less employers. 

Looking forward to getting some great guidance from you all on getting my BRRR started in Ohio.

I recently bought a new rental and the previous property management told me I need to get a lead paint inspection every two years in Cleveland, does anyone know anything about this?

Thanks

@Jennifer Cramer

This is a great question and this is very common when getting started. I love the fact that you set your target budget, down payment etc. While you mention you don’t care if you make money you don’t want to lose, as an investor a goal should be to make money. Of course the education you will obtain from your first rental will be worth the price of admission.

As it relates to areas, I think you need to visit the area where you want to invest. I would say out of the options you chose, I would not do Maine. The reason being is your costs are not as easily controlled. You may have to cover utilities which can be super high depending on the winter as well as snow removal etc.

I would look toward an area that is desirable. For east coast areas, parts of Virginia, Maryland, both Carolina’s and Georgia should be looked at.

Lastly make sure to do a thorough job of interviewing the property manager

I would also not rule out parts of Alabama

I was at a conference recently and met with some people from spartan invest who do turnkey rentals. They also manage. A company like that, that is reputable could be considered too