My Day in the Life At Ohio Cashflow... I apologize for the long winded post.
I"m an out of state investor from Nevada, formerly from California (bye bye Cali). I realize this is an older thread but it was the first one that popped up when I searched BP for Ohio Cashflow... and I want to throw in my 2 cents.
I'm typing this out as I sit in my hotel room in Toledo (Hampton Inn is fantastic and close to the OCF office) after spending the day and evening with the team. I'm still trying to digest the day and that delicious rib eye (Thanks Engelo). But let me start at the beginning.
My wife and I are about to retire. I actually pulled the plug on the J.O.B. About a month ago which freed me up to travel to Toledo. We are moving to Central America this coming August and we needed a modest passive income stream to facilitate our minimalist lifestyle. We have sold it all (Except the Harley) including our primary residence that we had purchased and rehabbed ourselves over the past four years. It was a foreclosure and I did the rehab while we lived in it... we owned it outright and the sale was what we needed to begin our adventure in Turn Key properties. Our immediate goal was to acquire between 7 to 10 properties with a ROI between 3500 to 4000 a month. We were very calculating about our model and used a very conservative approach toward expenses. Keep in mind we are debt free and not interested in using leverage to get started.
I started my search for TK operators on the web and ended up here at BP. What an outstanding resource and I appreciate the time and effort by all the contributers here in the forums. Spending endless hours searching and vetting I had whittled it down to a few areas in the Midwest and the South. Memphis was first on my list because it was sexy and there was a lot of interest there. I spoke with a few operators there and we just didn't click. I'm not going to name names, but it just wasn't the right fit and it didn't match our expectations for our model. I moved on the the KC market and again... not a fit for us. Next was Indy, same story. Via email and phone and a lot or research we moved our attention north to Ohio.
It didn't take long to find the Dingo aka Your Favorite Australian. I made my appointment to talk to Engelo and he was actually the first guy to call me almost on time. 5 minutes late, we don't sweat the small stuff. Before I made my call I tried to dig up the dirt on him and his team. Nothing negative. Only positive. In hindsight I believe that anyone that has had a bad experience with OHF was probably not a good fit for this operator. I also watched a lot of his videos and Google walked the 5 Points area for days. The neighborhoods were interesting and I kinda fell in love with them. Spent time on Trulia and Zillo learning as much as I could about the area.
Our phone call was short and sweet. I was prepared with my questions and he had an answer for every one of them. He was everything I expected. Cocky, sharp and to the point. He asked for the good faith deposit and I layed down the 5k without hesitation. I shared with him my model with full disclosure and he put me in touch with Rebecca who sent me some deals. We crunched the numbers and walked with Google and made our decision to go with one to start.
The transaction was flawless and the communication between myself, my wife and Rebecca was outstanding and met every expectation. She asked us when we wanted to close escrow and we closed on that date. It took about 8 days. OCF introduced us to the title company and gave a referral for an insurance company (The one they use for their personal portfolios). Everything went super smooth... as if they knew what they were doing, LOL.
Bang, just like that we had our first property. Next we were introduced to the in-house property management team. Any questions I had about the PM were answered in advance by either Engelo or Rebecca. Our on-line portal was set up and all we had to do was wait for the cash to flow.
I made my travel plans to visit the team in person, quit my job and said "Let's buy another one". I wanted to have a few under my belt so when I got to Toledo I could visit them. The second one went really quick too. Sweet little 2/1 that yields 8.7% return after our conservative strategy. If I'm not mistaken we closed on that one in like 5 days. It would have been 4 days but there was the Memorial Day holiday in the middle.
Low and behold, on the 14th of the following month the money hit our account. True to his word we received rent on the one property that didn't even have a tenant in it. Not one hiccup to this point. It's onward to Toledo.
I flew into Toledo and got in late. We had a little mix up with what airport I was flying into but Rebecca picked me up and took me to my hotel. I was going to rent a car, but she insisted in picking me up. A very nice gesture. It was about 12:30 in the morning. OCF truly works around the clock. First class service. Ahahaha, she would even let me load my own bag in the back and she insisted I sit in the front with the driver, her husband. He is also a member of the OCF team working in renovations. If I'm not mistaken he oversees renovations. In the middle of the night I'm firing off questions and they in turn answered them all. I'm surprised they didn't tuck me in. The nicest of people, I tell ya.
Engelo's personal assistant, GG, picked me up in the morning and took me to the office. Along the way, more questions and answers. GG is a delight. Right on time, no surprise. When I entered the office I was greeted by the controlled chaos. Everyone was busy but they all took the time to get to know me. From operations to property management.. then acquisitions and finally the Dingo himself.
Engelo was everything I expected. The guy is a nut. Passionate and full of life and love for what he does and the people he works with. You know that feeling you get when you meet someone and you just know you made the right decision??? Yep, I had that feeling. He was interested in me and my success. His success come from his investors success... the people that work for OCF thrive off of his energy and he has tons of it... oh to be young and passionate... and smart. I got the feeling that working for this guy was a commitment like no other. I liked it. You just feel like you want to be part of it. You want to get on the train... and I did!
Rebbeca took me on a tour of the neighborhoods and I got to see my properties. One that has a tenant in it we could only view from the outside. We don't bother tenants. She was miffed that the lawn was not mowed and made a note to talk to the PM about it. I noticed the new roof and that the rain gutter was pulled from the awning. She made another note and said there were still a few minor things that didn't meet her appoval and that they would be taken care of in short order. Sweet.
On our way to the next property she showed me a few more that they either owned, managed for other investors and even some that they were wanting to acquire. Along the way she was asking the other investor advisor that was doing the driving why they didn't own this one or that one. They wrote down a few addresses. We stopped by one property they had recently bought that had not had any work done on it yet. We went in and I just had to shoot a video of it. It was trashed... I mean wrecked. And smell???? The flys were everywhere. Someone had painted the face of Jesus on one wall (I thought it was the Zig Zag man...) On another wall the word "Sorry". There was crap everywhere. The kitchen was void of appliances and torn up mattresses in the bed rooms. "But can't you see the potential?" Rebecca said. I wanted to go down into the basement (we don't have basements where I live) but I couldn't. The smell was too bad. She did say something about removing the dead body before we got there... I wouldn't be surprised except for the fact that the nice neighborhood didn't seem like the type akin to harboring dead humans... but whatever.
On to my property that was under renovation and almost complete. I took some pics and video of it. The floors were brand new. Beautiful laminate in the living and dining... new ceiling fans too. Tough linoleum in the kitchen but the appliances had yet to be installed. There was a lot of stuff on the countertops, but they too looked new and modern. Fresh paint with the baseboards and trim in gloss white. Upstairs and bedrooms had new carpet throughout and the job looked well done. They had a guy working on the one and only bathroom in this old 3/1 home. He was working on the shower. Like everyone else working for OCF, this dude was cool. I didn't want to waste his time, but he was happy to talk with me. Earlier in the day Engelo warned me not to waste his peoples time. I know he was half kidding but I wanted to respect that fact that these folks had work to do and I was in the way of that... ahahahaha.
There is obviously more lipstick to put on this pig before it's rent-ready, but it's getting close. My only knock is the attention to detail, but again... it's not finished. I look forward to seeing pictures of the finished product. What I mean about the little things is nothing more than getting paint on things that aren't suppose to have paint on them and no fresh paint that needs some. In the meantime, I look forward to seeing the rent hit my account, tenant or no tenant.
After a little more touring and visiting other opportunities they took me back to my hotel. I contacted my wife and she gave me the go ahead to pursue two more. She ran the numbers on the ones I liked and they ran COC of 8.3% and 8.6% respectively. Both are 2/1's in what Rebbeca calls the "Shoe Store Neighborhoods". She likes to shop there... not for shoes, but for houses. I really like the 2/1's but so does Engelo. Keep in mind that as he helps investors build their portfolios he is building his own... and he likes the 2/1's too.
I took a quick swim and got in some exercise before GG, Engelo's personal assistant picked me up and took me to the office again. There is a lot going on at the OCF office. There is construction going on down in the boardroom. We goofed around a bit and Engelo demonstrated his robot... yes robot. Before Engelo, Dominic, Rebecca and myself went to dinner there was one final thing that had to be done before we could go. We had to move a few boxes and center the table. When I say center the table, I mean center the table... to exacting measurements. It had to be perfect. And it was. Can you say OCD??? He is a mad man.
The four of us had a lively conversation during and after dinner at Longhorn Steak House. Funny, we all ate rib eye cuts. We enjoyed conversation and sharing each other's passions, visions and even a little business. For me, the time I spent with the crew only solidified in my mind that I made the right decision investing in Ohio Cashflow. I say "In them" because I really feel like I'm part of the team, not just a number. Engelo promised last night that he would review the inventory and get back to with some deals. He would like to see me diversify in other neighborhoods and suggested we look at others before pulling the trigger on what I'd suggested. I like that. He has a great understanding of my model and is eager to help me attain my goals and to look at even a bigger picture... So, I'm typing this out as I wait for the call. I know they are super busy today and if I don't get the call today, it's cool... we don't sweat the small stuff. We will do more business, that I am sure of.
I hope this review of my day with OCF helps you. I know the window of opportunity is closing with the operator and in truth I suppose I'm a bit selfish and like to keep this gem to myself... but that's not what I'm made of. I wish only success for this business and look forward to growing with them. I also know that this is not for everyone. Engelo can bet a bit brash, but I really relate to that. As others have said they only deal with cash buyers which also isn't for everyone... but I will tell you that if this model fits for you, you can't ask to work with or invest with a finer operation.
I know this all sounds like its all roses, but I'm sure there will be bumps along the way. None so far, but I know it will come. When it does, I know my best interest will be at the fore front. It's just how these people do business.
Thank you for taking the time to read this... and again I hope you benefit from my day here in the Midwest.
Mikie V
