All Forum Posts by: Account Closed

My degree is in finance - I can calculate, NPV, IRR, ROI, ROE, COC, or EIEIO (yeah, that's from Old MacDonald ...) or any other acronym we have developed over the years to make ourselves sound smart. Financial ratios are great, setting goals and using math to define and measure those goals is great - I think it's smart to take those into consideration. The reality is you never know if an investment is good until 20 years after you make it and have the opportunity of measuring your return against the opportunities you didn't take advantage of. If all of us on here took our money 20 years ago and bought Amazon stock, we would be laughing at real estate investors as schmucks right now.

Just my opinion, but I think many people get too wrapped up in the numbers and forget to enjoy the thrill of the hunt. Searching for deals, networking with other investors, running projects, and building a portfolio that is our own little kingdom in the larger world is what I love about real estate investing. Make no mistake about it, I'm in real estate to build wealth. It has proven over the last 150 years to be a great way to build sustained wealth. With that said, the hustle and grind are fun and exciting. Don't forget to have some fun!

Cleveland is a great place to invest. Lots of opportunity here.

@David Olson - in terms of tenant acquisition I have seen no problems with attracting/retaining tenants in my experience. Most of Cleveland has been slow to appreciate, but cash flow opportunities are strong. The appreciation has started to accelerate over the past 9-12 months in particular.

@James Maradits - Hope you were able to close your deal! @David Olson - I lived in Montgomery for a bit. Hope your trip to CLE goes well.

In Cuyahoga County (Cleveland and surrounding areas) you can make a payment plan with the treasurer. It's typically 24 months of interest free payments for non-owner occupied properties. If financing is involved, the bank may balk at the back taxes unless you have the plan already in place and you escrow the payments.

@Amy Hu - Heavy rehab is a relative term. Building a single family home from scratch is a 90 - 120 day process if things are done efficiently. If you have to rehab 16 units plus common areas plus any mechanicals or structural things, I don't think 6 months is out of line. 1 week per unit is 4 months by itself, and if heavy rehab is really heavy rehab, 1 week per unit may not be enough. Then add common areas and any mechanical stuff and it's easy to see how 6 months pass before completion.

Apartments are a lot of square footage to cover/finish. Little things slow you down like debris removal from 3rd floor units, packing materials upstairs and through hard to navigate hallways & corridors. All those little things add up to add time to a job. At the of the day the "2 T's" kill you - touches and travel. The goal is to touch everything as few times as possible, and have materials/workers/debris travel the shortest distance possible. Easier said than done most times.

@Jan H. - Thanks!

Mechanical systems can only be accurately tested if all utilities are on. Without that assurance you are rolling the dice. I buy properties as is frequently, but I also have crews that can fix any issues. Not sure what building/property you are heating but $8250 seems high for anything 4 units or under.

@Jan H. It has been my experience that anytime you have any rezoning or government agency to deal with, it does not move quickly or smoothly. 90 days seems very unrealistic as a timeline to be able to refinance the property if you have red tape to deal with.

I would also caution you that the more people involved in a deal, the more complicated the decision making process. I strongly suggest having a written agreement in place that clearly describes the decision making process in financial and non-financial matters, which investors take priority on payments/distributions/withdrawls, and if that same seniority applies to any losses that may occur.

I'm doing 3 joint ventures with single partners right now, and we have operating agreements in place that clearly delineate these things so we don't have any ambiguity. Good luck if you decide to move forward.

If you do wood or floating floors you don't want anything that restricts movement. Those systems need flexibility as they expand and contract with temperature changes, and you will have problems with the field seams if there is something that restricts movement - like base cabinets on top of them.