All Forum Posts by: John Mullen

Oh boy, here comes the Ohio crew. Prepare to be inundated Isaac lol

Looking for a short term 6-12 month financing for an AirBnB outside of Columbus OH. First lien position with the transaction being handled by the title company. 

 To put this in context: 

Twin Cities MN has 16 Fortune 500 companies, 24 Fortune 1000 companies. 382,463 college/University students at campus sites such as world famous U of M (world famous in bio-medical and a host of other things) Hamlin University, St Thomas, Carlton etc etc etc. 

MN also hosts major sea ports, international trade routes, the "capital" of taconite and now even with gold exploration, one of the top tourist economies in country, etc etc etc. 

I am not trying to get in a D-measuring contest here, I am just a bit exhausted of the OH agents spamming on here how OH is the in-all end-all place to be. I get it, it's where you make $, you want more persons coming there, I get it. BUT that alone is the point, and signal of market WEAKNESS. OH market is a house of cards standing on top of a mass influx of OUT of state investors. Meaning your R.E. boom is NOT standing on internally sustainable metrics, it was via foreign (out state) dollars flooding in. That's not a great thing for continued "significant growth". 

OH saturation of rentals is arguably one of the highest in the nation today. Not to mention the dollar levels one of the lowest. Again, not a great indicator of health. 

By the numbers, and many of my OH counterparts have discussed this with me, I would have to do any 3 properties in OH to match what I can do with 1 MN Twin Cities property. That's 3 times the risk exposure, 3 times the headaches, 3 times the potential for tenant nightmares. And being such a low $ market in OH, what's the grand sum total of a tenants security deposit, what $1,200? What's that cover? Paint for a few rooms? No, not a fan of a market built on "but it's cheapest", that has been a sales slogan in countless products and it's ended horribly every time. 

OH needs to show it can stand on it's own, not off a steady conveyor belt of $ coming from out state. 

For example, and sorry to go there, TX. Reality is TX doesn't need anyone, they don't. TX stands on TX. MN stands on MN. TN, CO, IL, IA, WI, etc etc. 

Again, I don't mean to be a jerk about it but it appears your broker asked every agent there to come onto this post and spam about OH. 

I am here in Columbus, OH until this Friday.  To investors, real estate agents, contractors, and property managers, I would love to meet up with you over coffee or lunch if you are in the area this week.

I am going to a meet-up on Wed, the 18th of Jan, and below is the information I received from @Kurt Phillips, who is hosting the event.

"We meet at the Pizza Cottage in Lancaster, Ohio, located at 2223 W. Fair Ave. At 6:00, everyone arrives to network and get drinks and food before the speaker takes the front around 6:30."

What an all-star cast.  Dan "the man" Rohrer will be there?  He and Ryan Young are local celebrities that close hella deals.  I'll be in attendance.

Can't wait to meet this "Milo Grogan" in person too.

Quote from @John Mullen:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $155,000
Cash invested: $30,000

Contributors:
Mike Pauze

Still in process of rehab. Intention is to evaluate best option between STR/MTR upon rehab completion and refi.

What made you interested in investing in this type of deal?

BRRRR strategy self-education.

How did you find this deal and how did you negotiate it?

Realtor (thanks Teri Gilmore!)

How did you finance this deal?

Hard money.

How did you add value to the deal?

Tore out back wall to better integrate addition and create open floor plan, redoing all cosmetics and updating kitchen/bathrooms.

What was the outcome?

In process but going well.

Lessons learned? Challenges?

Structural rework is complex.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Adam Messmer, Teri Gilmore.

 I have a good structure guy if you need someone