All Forum Posts by: Nicholas Novak

Are you looking for a title company?

I don’t see why you wouldn’t. If you know your builder friend is legitimate and you think the risk is worth the reward, there’s nothing wrong with it.

The builder could find cheaper interest for sure, but if you aren’t charging points or a 5k per lend it might work out to be a win win. Plus he might be using equity partners now and giving away half his deal. 

Worst case is the job isn’t finished and you have to complete it and take it back. Then you make the profits as well. Just make sure your draw systems are setup based on completion of work like hard money lenders. 

Euclid has its good and bad pockets, but overall it's prices have risen 16% in the last 12 months so cash flow and appreciation are working in that neighborhood. They are still below the 2007 crash point as well so they still have a lot of room to grow.  

Welcome to the site @Ivy Flowers ! 

There's nothing wrong with wholesaling and sustainable businesses have been built around it. There's nothing wrong with brokering either. The beauty of real estate is that it allows you to be creative and build wealth however you want.  Most people in the business do a blend of many things. I wholesale in NE Ohio and I also flip, wholtail, have done a few creative deals and intend to buy some rentals by the end of the year.  I have friends that are agents and wholesalers. The answers that you are looking for are here.  Listen to as many podcasts as you can and soak up all the information you can.

Hope some of this was helpful.

I am by no means an expert on purchasing houses at sheriff sale, my experience is 1 house from cuyahoga county to be exact. Ha! But I would be happy share my experience with it. What questions did you have?

I like It! Go get em!

@Rick Klimek  You will have no problem renting in Lakewood. 

The Market everywhere is tight. 20% gross margin isn't going to be enough to move the needle on a 120k sale. If you are using hard money and you get a deal on the listing, say 3.5% commissions total, 8-9% of your gross is eaten by closing costs both transactions, commissions and holding costs if you hold for 4 months or less, figure 7% if you don't use hard money. The other thing people forget about is concessions, on average at that price point consider 4k in concessions because thats FHA / VA buyer all day long and they need the cash back to pay their side of the closing.

120k purchase x 7% = 8.4k

120 - 8.4 - 4 - 40 - 56 = 11.6 profit

If you go over on your buy, make a mistake on repair estimates which its alway 3-4k more than what you think, Or have to sell for anything less than calculated ARV, what's left?

You need a larger sale price or ways to reduce costs. If you use hard money you are looking at 9k profit if you were perfect on estimates and sale price etc. 

Other options are to start looking off market, network with other investors, market for deals.

@George H. Parma is a great location for rentals, no POS.  Both lakewood and cleveland heights have a POS.  Parma is definitely B-B+ neighborhood.  Lakewood is ridiculously hot. Cleveland heights Varies from street to street, be very careful there. The area is really hard to comp and it's easy to make a mistake, tho you can get great deals there. Cleveland heights and lakewood also have older homes that will require more maintenance.