All Forum Posts by: Jacob Repreza

Hey @Blake Mackenzie Hochadel! With no capital you can start 1 of 2 ways, its either wholesaling or partnering up with someone who is willing to teach you. 

With wholesaling you can do it a variety of ways, mailers, driving for dollars, cold calling etc etc and since you're local it gives you a tremendous advantage. Also if you don't know what wholesaling is or aren't familiar you can find plenty of forums and articles here on BP. 

The partnering one can be tricky. If someone already knows what they're doing and has the money there's no need for you. There's also some people who charge a mentorship fee which I'm honestly not against but it's like a 50/50 split on them actually make the fee worth it. Some charge you and then give you no guidance and just treat you like an assistant. 

All in all, those would be the 2 most common scenarios, my advice would be either wholesale or consume all the real estate content you possibly can and then find with someone with capital or take the leap yourself. Usually the best way to go. 

Hey @Ivan Franco! Welcome to Bigger pockets. Biggest things I can add is make sure to learn the ins and outs of East Cleveland. There is always going to be opportunity if you're buying homes at 30-40k but you have to remember why they're being priced that way. Me and my partners invest in Cleveland as well but we stick mostly to the suburbs and while my partners don't like cleveland proper, I for one am looking to get a rental there soon but very much prefer the middle to west of Cleveland where it has more things going for them. 

And also, I noticed you mention you're investing there simply because of the price point. Cleveland is great for the price point but don't make it your only factor. There's plenty of other markets with a similar price point so just look further into the city and make your decision. 

You've gotten the viewpoints of people much much more experienced than myself but way I view it is how much capital you have available and how risk averse you are. 

Los Angeles 

- you're local and should know the area a decent amount. 

- extremely tenant friendly 

- pricier but historically speaking appreciates like crazy.

- might have to start cash flow negative and have a more futuristic outlook. 

I've seen a few Cleveland investors and I invest there as well so I'll use that as the other counter point.  

- Landlord friendly 

- you'd have to trust referrals and people you don't quite know. (actually visiting helped me out tremendously btw)

- much cheaper but much slower appreciation. Although it is increasing in most areas. 

- can find cash flow much easier. 

That's your little positives and negatives chart for you hope it helps! 

Like most things in real estate it always depends. We had a property we recently closed on which had a $60k POS report which was scaring away buyers and lead to the home being on market for 100+ days but it was a good deal so we moved on it anyway considering the after repair numbers worked. 

If you come across a property that's heavily discounted and has good cash flow $10k worth of POS on the report are you going to pass it up just because of the escrow hold?  I would hope you wouldn't. So it's really all dependent of the final numbers. 

Hey @James Lau Welcome to Biggerpockets and the Real Estate Journey! I understand the feeling of wanting your properties nearby but you just have to be aware of the difficulties that might arise through that. Los Angeles does offer a lot of Multi-families so that is a positive but due to the price point it can be more difficult to find a cash flowing property and let alone a good enough deal to BRRR.

The investors I know that actively buy and hold in these expensive areas typically do it for tax benefits, and to bank on the long term gain of appreciation, not really for cash flow. Also, considering where we are in the real estate cycle, buying something at the peak simply for appreciation can be a risky proposition. If you'd still like to be close though you can look at the surrounding areas of Los Angeles where its cheaper i.e victorville, lancaster, hesperia, apple valley.  

We just use the county website to get the most accurate tax info. https://myplace.cuyahogacounty.us/

But as others have pointed it, taxes can be very high in most areas of cuyahoga. Always make sure to check them out before hand and remember that it's on assessed value so if its an ugly house with full rehab then it might increase afterwards. 

@Cole McMath as far as looking for wholesalers I would say a combination of facebook groups, searching here on BP and also asking other investors in the areas you want to invest. Referrals are always the name of the game when it comes to real estate and if those investors actively purchase properties in those areas then chances are they're on a few mailing lists. 

@Samantha McDougal we've used Tony at Fast tract title a few times now. Not sure about the simultaneous closings but he's been great help several times. I can't put his contact info due to the restrictions in the forums but if you're interested just shoot me a message.  

Hi Isabella! I'm also an agent here in Southern California and currently invest in Cleveland so feel free to reach out if you have any questions! Locking up properties on the MLS in Cleveland has gotten a bit more competitive the last 2 months or so but there's still deals to be found.

Do you mind me asking what kind of rents you're expecting to receive?