All Forum Posts by: Karl Hinkel

Apologies, did not clarify. 72% of commercial deals in Ohio were from out of state capital, source being Marcus and Millichap. Primarily coastal buyers looking for more yield.

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Originally posted by @Brandon Sturgill:

@Jake Walroth Like I said, everyone loves where they live, but this is not an arguable point. It's just data:

Ohio’s population of 11,646,273 people makes this the 7th most populous state in the country. The state capital of Columbus has the highest population, which is 850,106 according to 2017 estimates. The second most populous city is Cleveland with 388,072 inhabitants, followed by Cincinnati with 298,550 people.

So, maybe I misspoke...Columbus is actually 3x's the size of Cincinnati.

I live in Columbus, spend a good amount of time in Cleveland and am from Cincinnati. Columbus downtown may be larger than both Cleveland and Cincinnati. Columbus has seen more growth than Cincinnati and Cleveland, both Cincinnati and Cleveland are both strong, stable markets. Cincinnati's metro is statistically larger than Columbus, and the 28th largest metro in the country, compared to Columbus metro which is 32nd largest metro. As you mentioned Cleveland is a rust belt city, meaning it is older and has less space to expand because it is an established city. There are opportunities in all three cities and all three cities are seeing interest in from investors in the cities as well as investors from out of state. In 2018, 72% of Ohio transactions were from out of state buyers.

So, yes Columbus is growing at a faster rate than Cincinnati and Cleveland, but it is not 2x larger than either.

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Originally posted by @Arthur Wang:

BP!

I am making a trip out to OH in January and I'm looking to connect with commercial agents when I am there. Does anyone have any good referrals or recommendations?

Thanks everyone!

Hi Arthur, hope you make the most out of your trip. What parts of Ohio are you going to be visiting?

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Cincinnati, Ohio

Originally posted by @Bryan Pham:

Hi BP!

Could you recommend me to a commercial real estate agent in Cincinnati OH? Thanks!

Hi Bryan, what are you looking for? I am no longer in Cincinnati but have been able to work with some great agents in Cincinnati, may be able to point you the right direction!

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Originally posted by @Edward Aaron Itayim:

Hello all,

Over the last couple months, I have been getting a strategy together and seeing what would be the best fit for me in real estate. I am ready to get going but I had some financing questions. I am in the Columbus, Ohio area and interested in fix and flip single family homes. Are there lenders in our area that loan for projects like this? What are some likely terms? Can you get the cost of rehab financed as well? I know I could go through a bank, but I have not found any that would do cost of renovation as well? I thought I saw a company that would do 85% plus 100% of the renovation budget, but it was an out of state company. Just wondering if anyone had any luck around here. I have a modest budget and imagine there is a minimum loan amount. Thank you for any help.

There are definitely hard money lenders throughout the state that can help. I have worked closely with a few in the past. It may be difficult to get a 100% financing with out experience. Not sure what your experience is, but having a portfolio of work / resume to share with a lender about your experience and expertise will give you more opportunity to secure financing.

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@Trenton Chase Martin that is great. Best of luck to you! the small mf market and sfr market has been hot and has potential for continued growth. Feel free to reach out whenever.

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Originally posted by @Craig Williams:

Currently live in San Francisco and would like to purchase rental properties in other cities. I have looked into a few cities denton tx, kansas city, and columbus oh. Does anyone recommend a city to get started?

Hi Craig, welcome to BP great place to connect with investors, lenders, agents, etc. There is definitely a lot to consider when beginning to look for a place to invest. In my opinion, having a team in place is going to be the most important step. Having an established team that will help you in running the entire investment process - agent, lender (mlo, private money, hard money etc.), Property manager, title, attorney. Do not discount a great team, and how that team can make your job 10 times easier.

With that said, the Midwest and South East has a lot of cities that are seeing a ton of investment from out of state buyers. Columbus is a very hot market, Memphis, KC, Cincinnati, Cleveland, Indianapolis, Nashville, Raleigh and Charlotte. When looking check to see what is going on with employment, how has the job market been performing? Are people moving to the area for work?

Start out with a large list, and break it down into a smaller list of your target cities baed on some research and from there start looking to build your team.

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Originally posted by @Trenton Chase Martin:

So I just moved to Dayton, Ohio to work with an investor who is mentoring me. I was unfamiliar with the area and at first thought I was close to Cincinnati (yeah, not really). Anyway, since I’ll be in the area quite frequently for the next few years trying to build my team (pretty much half my time) what is there to do in this town? I already checked out the gyms I can join, so my week will consist of work and lifting weights. However, when I want to give myself one day away from business to clear my mind and rest, what is there to do? Also, if anyone from the area wants to meet up so we can network and discuss ideas amongst likeminded people, I would be more than happy to grab coffee or a drink!

You are definitely moving into a great location for investing. Dayton is a short drive from Cincinnati, and Columbus. Columbus has seen a lot of growth y/y and is the 14th most populous city in the country. There has been a lot interest from investors in tertiary markets (like Dayton) by investors who are looking for a higher yield than they may be able to find in Columbus. What size properties are you looking to invest in?

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Columbus is experiencing a lot of growth, very good rental market and expanding metro. Cleveland and Cincinnati are not experiencing as much growth as Columbus, but are both well established markets. Census data is great, but seeing the area and speaking with boots on the ground will give you a much better understanding of the market.

Cincinnati and Cleveland still offer great opportunities, especially as cash flow markets. I am most familiar with the Columbus market, but am from Cincinnati and frequently in Cleveland (1-2 times per week).

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Originally posted by @Lewis Juah:

I am a newbie, it's possible to start investing in multi-family as newbie?

Hi Lewis, definitely possible. There is house hacking which is how a lot of people have been able to get started, BP has some great blog posts on that. I have shared a few below. Other people have been able to get started through syndication services, either as the syndicator or as a passive investor. I would recommend doing more research, and checking out the FHA loan programs, especially 203(k) for house hacking.

https://www.biggerpockets.com/renewsblog/2013/11/0...

https://www.biggerpockets.com/renewsblog/2016/02/2...

https://www.biggerpockets.com/renewsblog/house-hac...

https://www.biggerpockets.com/renewsblog/why-im-no...

Disclaimer*** I have not house hacked, nor syndicated any properties*** Sharing what I have learned in adding knowledge and working with investors.

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