All Forum Posts by: Matt Stewart

Of course you're right, that's not something most investors would take on, out of state or local. But when the ARV is $200k+ the numbers make sense. But only if you've got the right team in place.

@Edo Tinjak

I've been flipping in the Columbus area for 10 years. I was fortunate enough to get started when the low hanging fruit(mls REO's) was plentiful. It's a whole different ball game now and I would caution anyone who thinks they're ready to jump in to take some time and think about strategy. I know every podcast and webinar says to take action, but that's easy to say with someone else's money.

It can and is being done in this market, but you better identify the hurdles and figure out how to get past them.

@Bryan S.

Just out of curiosity, even if this deal lost it's appeal to you for "complicated reasons", do you think it may appeal to other local investors?  If the numbers work perhaps you could shop it around and find someone who would take it off your hands, for lack of a better term.  I've never done this type of deal, but I'm wondering if some type of agreement could be made that would keep you in the good graces of the court, save your deposit, and satisfy the bank(seller).  And if another investor makes it work, everyone wins.

@John Harris

I'm looking at your post from the other side of things. I'm fortunate enough to live in an area where a lot of out of state investors are finding opportunity. And so I work with a few investors who are investing in the central Ohio (Columbus) area. It's vital that you put together a team(boots on the ground) local to the area. At the risk of ruffling some feathers, Realtors are a dime a dozen in this town. But a buyer's agent who truly understands the market and can recognize a good deal when they see it instead of just wanting to earn a commission is priceless. That being said the best deals aren't coming off the MLS, which means even an excellent Realtor isn't going to be much help. I'm finding deals at 25% of ARV off market. So then the next member of your team needs to be someone who can determine how much it's going to cost you to bring that property up to full ARV and can get it done on time and on budget. Because it's not unusual to find a property for $20k that needs $100k and 6 months or more worth of work.

Bottom line, surround yourself with good people who understand the market you want to invest in.

@Dan T.  I've got a partner who really likes Old Towne East as well as Southern Orchards and other inner city areas that are going through some revitalization.  There's some opportunity there.  Run your numbers carefully and look closely at comps so you understand the type and quality of improvements you'd need to get top dollar.  Rehab budgets can add up very quickly so make sure of your numbers before you jump into something.

@Dan T.  Have you found someone to take a look at this yet?  If you have it under contract I could probably walk it with you and give you an idea of what you're working with.  Or if you want a more thorough home inspection let me know and I'll PM you a guy's name and number.

I'll just share an experience I had with buying title insurance from the title company that auction.com uses.  I paid the extra money for the title insurance and received the title commitment.  But a few months later when I go to sell the property I ran into a problem.  Once I got a contract I forwarded it to my title company for closing.  They of course do a title search and it turns up an open mortgage.  I'm thinking how can that be?  When I bought the house and paid for title insurance they should have run a title search and discovered the open mortgage.  Well the search they apparently did was half *** and then they were no help at all getting it resolved.  Long story short, I did get a letter of indemnity eventually but it was a pain in the ***.  Next time I work with auction.com I will have my own title company perform the title search and handle the closing.

@Erin K.  There are some inner city areas that are going through a lot revitalization and the values are really popping.  Take a look at Franklinton, Southern Orchards, and Old Towne East.  Of course most of the suburbs outside of the outerbelt hold decent value, but you're not seeing the same level of appreciation.  As far as areas to stay away from I'd avoid Hilltop and 43227.

@Duece Slade  What type of investing are you doing?  I've been flipping for the most part in central Ohio area for the past ten years.  Feel free to reach out.

@Jorge Barboza Jr. The central Ohio area can be a great place to invest if you know the area. I do work with a few out of state investors on JV deals. If there's questions I can help answer don't hesitate to get in touch.

@Steven Duby  First of all, congrats!  Sounds like you've got some hard work in and it's starting to pay off!

I would avoid the Hilltop area and anything in the 43227 zip code.  That's broadbrushing it, and chances are you'd be looking at a higher priced property anyway.  Find a good Realtor, there's a few on here from the Columbus area that will put you on the right areas.