All Forum Posts by: Mark Lenox

Welcome, Daniel. Good luck overseas and thank you!

Hi, all. I am just getting started as a REI and could use some advice.

I got into contact with another local investor/flipper who also wholesales occasionally. He offered a property wholesale, with this deal analysis:

$150,000 Purchase Price

$25,000 Repair Costs

$225,000 ARV

also holding and transaction costs...

$30,495 Estimated Net Profit

First I told him that my capital is limited to $125,000, to which he replied he can help me get a hard money loan for the rest with no problems. (The above estimate included the financing for a hard money loan of $60,000). So... I took two potential project managers out to look at the property, both with extensive contracting/re-habbing experience. Both of them said the property needs well over $25,000 in repair costs and seemed to be more like $35,000. In addition, neither was willing to take the job because the property is at least 45 minutes away.

Now, the wholesaler is offering a different opportunity to me. He is proposing that I come in as the hard money/equity lender. I would hold a mortgage on the property worth my capital investment of $120,000. I would be paid 10% (annualized) interest or 30% of the profit on the deal, whichever is higher. I would also be involved in the entire flip from start to finish, learning all of the details.

From an educational standpoint, this sounds like a great deal. I get to be educated in REI from a pro while getting paid for it. I just wanted to get some feedback as to whether this sounds too good to be true.

Thanks in advance for your input!

Mark

I am also wondering if anyone has tried this site.

@Christopher Boggs and @Aaron Westerburg , do you attend or know of any good REIA groups up here that you would recommend?

Thanks, all!

@Christopher Boggs great tips! I hadn't heard of POS inspections. Yet another way for the local govt's to get their palms greased, I suppose. How can I find out which cities require this? Any good agents in the area you would recommend? I can't look at MLS without an agent. My price range is currently $125m (cash) total purchase + renovation, so if Twinsburg is too high, they wouldn't come up in my searches. I am concerned about Northfield, with the new Casino and all.

@Paul Timmins thank you. I began this whole trek by reading J Scott's The Book On Flipping Houses, and it's very good! My main issue is simply staying motivated.

@Aaron Westerburg thanks for the welcome. How much success have you had in the area, if I may ask? Same question as Christopher: who would you recommend, agent-wise? I have thought about marrying my DM background with this, but first I need to gain experience and actually do a flip! At this point, the market is still heavy with REO's, so I think the DM piece will be more helpful when that dries up (if it ever does).

Thanks, all!

Hi, all. I am a newbie, trying to start flipping. Northfield, Ohio is a community located between Cleveland and Akron and recently had a casino open (Rocksino by Hard Rock). I am considering investing in the area, and would very much like to know what experienced investors think will happen to property values.

I believe I am a pretty business-savvy guy, but I can't decide whether this will help or hurt values in the area.

Any thoughts?

Hi, James. Thanks for the welcome. I was just looking at your website. Do you only focus on investors who hold?

I am a bit torn about where to begin. My challenge is that my real estate industry contacts are in Tucson, Arizona, so I have been actively deal-hunting by proxy down there for about a month. However, I listened to the latest podcast with @J Scott, and now the idea of investing away from home is scaring me a bit.

I would be interested in focusing on 44067 Northfield, 44056 Macedonia and 44087 Twinsburg, but in all honesty that's just a "gut feeling". I don't have access to MLS up here like I do for Tucson, making it very difficult.

Any advice you could give would be great.

Thanks much!

Hi, everyone. I am Mark Lenox, living in Valley View, Ohio south of Cleveland. After two decades in the Direct Mail industry, working my way up the corporate ladder to Vice President, I lost my job in late 2012. I am an entrepreneur at heart and decided to start my own company rather than relocate and continue to make other people wealthy.

Other than my own residences, I have no experience in Real Estate and none whatsoever as an investor and flipper. I have family who've been in real estate their entire careers, and it feels like a good fit. I read J Scott's BP The Book on Flipping Houses, and now I'm ready to rock and roll.

I'd like to rehab four properties this year and build the business to the point where I am making more money then I did as Vice President.

At BP, I'd like to find education, opportunities, networking with those in the biz, and most of all MOTIVATION.