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All Forum Posts by: Jared Lichtin

Jared Lichtin has started 37 posts and replied 278 times.

Post: Construction Management from Out of State- Single & Multi Family!

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

Looking forward to seeing everyone Thursday night! 

Post: Cash-Out Refi on Low-Income Multi-Family Houses in Cleveland Ohio

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Bob Prisco Hi Bob, no I typically only flip in A-B neighborhoods like in cle and shaker heights. I know you guys do a heck of a good job marketing and getting stuff under contract, so I'm always open to looking at something if it isn't exactly right for you. I'm more on the construction side though. I am transitioning my company to do larger scale projects for other investors as well. If you're interested in speaking I'm always down. 

Post: Cash-Out Refi on Low-Income Multi-Family Houses in Cleveland Ohio

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Jacob Silvermetz yea those areas are rough. My main concern would be finding quality tenants to rent around there. And then as far as lending is concerned yea like James said it’s all based on comps.

Post: Looking for a State to invest.

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Milton Marcelin Okay so in 2013 i was under contract to buy a house for 202,000. I thought it was worth 200 so I didn't mind overpaying because I was living in it. I should have known better but I went with a bigger bank because it was just who my parents banked with. Generally the smaller more local banks have better appraisals. Anyway I was putting 20% down, so about 40k, which is all I had. Then, the appraisal came back at 170. Ridiculously low, but I took it as an opportunity to get a good deal. The sellers were moving out of state, so they were on a timeline. I said the most I can possibly pay is 183,000. 20% of that is still about 36k, but I knew the house was worth 200k. So the bank would only lend on the 170,000 value. 20% down on that is 34,000. 170-34 is 136,000. Ultimately the sellers ended up accepting the 183k, I put down 10% instead of 20%, since it was my principal residence, not an investment property. (investment properties you always have to put down 20%). 10% of 170 is 17k, plus the other 13k difference between 170 and 183, which comes out to exactly 30,000 down, and a loan amount of 153,000. The 153 was based on the loan on the 170 value, and i put down 13k more to make the deal work for the sellers. Hope that helps!

Post: Looking for a State to invest.

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Alejandro Ortiz I'm in Cleveland, and there is plenty of upside to investing in up and coming areas there. you just have to know where to focus on. Finding properties on good streets in areas close to restaurants, retail and shopping, where you'll attract quality tenants is key. Oh yea and obviously cash flow. 

@Milton Marcelin if the appraisal comes back under accepted purchase price, either the buyer has to put more money down (because the bank will only lend on appraised value) or the buyer can (and should, depending on the situation) request a price reduction to reflect the value. Most of those situations involve re-negotiating the purchase price, and putting a bit more money down. But it's also a good way to get out of the contract as well. (I can't put more money down, I only have 10k, this is the best I can do, etc.)

Post: Need advice: Recommended renovations for higher rents?

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Michael Orlando Where is it, Cleveland Heights? I have a 3 unit in cle heights thats 6300 a year but its fully updated. You're going to have to make sure that no matter where it is, that quality tenants would rent at the price you're looking to shoot for, and that it's on a solid street in a good area.

Post: Flipping houses For a living?

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Francis I. Everyone is an independent contractor, so you have to have enough work to put everyone on contract. 1099 and not keeping track of hours is the legal way to do it. But in the beginning, some semblance of hours tracking is likely going to be needed under the table. The only other way is to set up a payroll system, make everyone an employee, have workers comp, and have everyone's taxes taken out immediately instead of at tax time. This involves a lot of hidden expenses, but it does automate things... and unfortunately, it seems like we're probably too big to avoid it this year. 

We have a solid carpenter who can do a lot of different trades, like roofing, tuckpointing, framing, foundations, etc. and he's our most expensive guy. One guy heads up a painting crew. And we have 2-3 demo guys who can do a lot of different things, like demo, landscaping, picking up materials, etc. We're to the point now where we need 3-4 more guys, and an assistant for my gc literally just to make phone calls and pick up materials. It's a good type of busy, but you definitely have to scale comfortably so you don't bring on too many people and then one day you wake up and you have nowhere to put people because there's not enough work. I hope that made sense. Also it's 3am on a Saturday rn... so you see the type of work I've been having to put in!!!

Post: First multifamily rental property

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Robert Matelski I grew up in Mayfield. Hit me up anytime, always down to talk shop.

Post: In need of more investment capital

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Aaron Peterson @Jad Boudiab 

Aaron I used to live in Fairlawn and I’ve done a handful of flips in nw akron. I’m starting to transition into bigger apartment deals since I have a construction crew now. But I’d be down to talk sometime! I’d love to get into some apartments if something came up around highland square or 44333.

Jad, great questions!!

Post: Buying Homes with Basements

Jared LichtinPosted
  • Contractor
  • Cleveland, OH
  • Posts 315
  • Votes 179

@Codi Clausen if you do a rehab with a basement it’s pretty standard to fill any exterior or glass block cracks, drylock the walls, and paint the floor grey.