All Forum Posts by: Michael Orlando

@Sheila Garcia I can say first hand that Cleveland is a great place to invest! Tends to be more landlord friendly (and there's some sub-markets of CLE that are even more-so landlord friendly). At the end of the day, it's really knowing where to be / where not to be which of course depends on the type of product you're looking for and return metrics. I own about 140 units here currently (mix between larger apartments, small multis and single family rentals, and will continue to build my portfolio here long term. 

I had about 40k (pretty much all of my savings since I was young) to start with. My partner and I found an off market deal that was a homerun and closed it. Technically, that wasn't from 0... but, after proving the concept, we've gotten 100% of the money we used to close the rest of our deals from investors and have invested 0 of our own money into the deals; and these have all been apartment deals between 24 and 62 units. Definitely possible if you're adding enough value by finding solid cashflowing deals and surrounding yourself with the right people!

I joined Jake and Gino’s program in 2019 with no real estate experience whatsoever. Just two years later and I’m a partner on about 200 units! It was a huge jumpstart to my investing career and worth every penny. It’s an investment upfront, but it’ll teach you skills that are invaluable and allow you to network with like minded individuals and people who are doing exactly what you want to do. Totally worth it IMO!

Yes was referring to my partner and I and we JV / syndicate so there are other partners/investors depending on the deal. I do not own all 200 doors myself.

Hey dude!

I, like @Michael Swan, have had good luck in buying apartments here with my partner and investors. We see higher COC returns than many parts of the country, high occupancy, and solid rents. I just started in real estate a year and a half ago and have about 200 doors as well and so far we've been very happy we haven't gone elsewhere in terms of a market.

Happy to chat and offer any insight if you'd like, just let me know!

We usually are between 1 and 3% for income and expense growth. In Cleveland, no more than 2%. In Cbus, I'd imagine you could use closer to 3%. That being said, it's definitely trying to somewhat predict the future so always be a bit conservative. 

This is awesome! I'm excited to follow along.. My partner and I buy syndicate/JV multifamily here in Cleveland. Would love to connect soon since we're in the same space!

I have a good mgmt company that we use for our apartment buildings. That being said, their unit turns tend to be expensive and we have a team of contractors we use for turns instead.. I can give you their info if you're interested though. Let me know! They manage a 22 unit property for us in Maple Heights right near Garfield. 

Investment Info:

Large multi-family (5+ units) buy & hold investment in Elyria.

Purchase price: $2,025,000

This deal is a 48 unit complex in a C class suburb outside of Cleveland, OH. The complex has 2 and 3 bed unit and we are currently undergoing the value add process.

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

We love large multifamily! As we build towards 500 units we're looking to keep increasing our deal size. Also, we sourced this deal off market and got it for an incredible price with tons of upside!

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

This deal came from a cold call. After contacting the seller, we had a few conversations about the property, obtained the financials, and made an offer that was ultimately accepted. Thankfully, the seller was pretty motivated.

How did you finance this deal?

We financed this through a local bank obtaining 80% LTV on the property and financing 100% of the renovations through the bank. This type of debt allowed us to bring way less cash to the table for renovations and therefore, increased our partners cash on cash returns significantly.

How did you add value to the deal?

We're currently doing major cosmetic updates including fresh paint, new carpet and LVT throughout the unit, adding cabinet hardware, new countertops, sink and pull out faucets. We're also doing all bathrooms with new flooring, shower fixtures, vanities, light fixtures and toilets. In addition, we're submetering the water which will eliminate a huge expense for us over time and significantly increase NOI.

I'm down to attend! I'll see if my partner wants to join as well. Could you shoot me a text with the info?