All Forum Posts by: Nate Richards

If someone is seeing a 18Cleveland/08Detroit resemblance in "profile", the data or data sources  for these "facts" best be quadruple checked.  

Detroit's; 2X the size @ 700k pop, +80% African American, 10% white non-hispanic, single industry automotive focused, for a start.

Cleveland's; 300k population, 50% African American, 40% white non-hispanic, and carries health care, insurance, manufacturing (Probably 70% non-auto), and financial sector jobs. Their largest employer Cleveland Clinic has 32k employees in the city which is more than the top 5 Detroit employers combined.  

Unlike Detroit, employees drive into the city enmasse for work instead of to the suburbs to massive sprawling factories.  It's clear even from a 1000ft view that Cleveland is well diversified. Preventing a potential meltdown like Detroit saw.

That being said you can easily choose a poor area without a knowledgeable team. These small city neighborhoods vary in quality and desirability block to block, not by zipcode. 

@Matthew Paul, i have a minor issue with your statement. If a PM was actually “charging for their time” the management fee would not be a % of the rent. Nobody makes $271 for 5-10 minutes of monthly work verifying rent payments and generating a P&L... (that’s $1626/hr)

And posting an eviction IS part of managing a property.

Assessing repairs, obtaining 3 quotes, and authorizing contracts for said repair is outside that scope and subject to additional billing. As is additional billing for sending late fee statements and fines.

I’m just glad nobody at this property generates trash, since it’s missing from his operating costs!

 Interested, but it of town on business that week. Let me know location the following month. 

In Akron it arrives at the property address as "current resident or owner". Once it becomes past due (the following month) a bill is mailed to the service address and the owners address. What is in the lease DOES matter, the tenant IS responsible to pay it, but like rent, you can get stiffed on it. If your property manager is unwilling or unable to enforce your lease (or submetering) you need a new one, period. Full Stop. 

In a good lease, failure to pay the water and sewer and maintain the balance current is a violation of the lease and subject to eviction. The landlord is simply responsible for paying it should the tenant ultimately skip out on you. Your PM should have filed eviction after month 1, month 2 if he was "working out any mis-communications" that occured during title transfer.

Welcome aboard! 

Investment property would be capped at 80% from my experience. It would have to be a primary home to get 85-90%. You could wait for it to season (in the right part of Akron) to pull the easy money or touch up the interior and pay $300 for a full appraisal if you think it can pull a higher value. 

Then IMO the best option of this type is to shoot for a $100k appraisal. Giving 46k HELOC. Use that to pay cash and refi the second property in 180 days. So that could also season at a (hopefully) higher appraisal of $60k giving you all your money back to pay off the HELOC with a conventional loan.

Problem is time. I'd look for a private loan at a low rate over HELOC. Like interest only...for 12mos and balance due in 12mos.

I.e. Bank of Mom, $50k loan, 300mo interest payment total due $53600. Hold the unused portion back and make a lump sum payment 180-360 days later.

Make it 10% if you wanna keep the math easy. The private loan would be unreported so it wouldn't hit you DTI ratio during refi like a HELOC would.

welcome aboard. AKRON is a great place to invest. 

Hi Guys, A retiree couple I know is interested in selling their portfolio, and asked if I know of a mutually beneficial proposal for selling their property. Here are the basics on the portfolio; (10) SFR properties, 100% owned debt free and 100% depreciated. Individual home values are $30-$40k, and have 100% occupancy via Section 8. Cash flow TBD, it works without a doubt but are C class properties. The sellers enjoy the cash flow but do not require it, and are worried about excessive capital gains taxes making sales unattractive due to depreciation recapture. I would like to purchase but currently have 4 mortgages and could not qualify for enough mortgages to purchase the portfolio outright. Is there a way for seller financing to assist both parties in this situation? It would allow continued cash flow for the sellers on the note and easy financing for me, but how could we defer or offset the capital gains to help the seller? All I can think of is delaying sales to 1 unit per year, with the buyer providing a down payment equal to their tax liability. Problem is the sellers probably won't last 10 years. Any thoughts or other options would be appreciated!

I would imagine anything that is a structural component (required for proper home function) that requires periodic improvement. Geographic  location shouldn't matter. Roof, siding, windows, exterior doors, hvac, water heaters, electrical panels/wiring, main plumbing stack.

Welcome. No words of wisdom unfortunately, all my investors I've known long before they became investors with me. Just keep networking and I suspect you'll find investors come easier than you think. 

Here's the stupid answer, last time I looked, and it's been 2 years... The Wells Fargo commercial lending group was very easy to work with. At the time they offered me 5-10% down, 5 year balloon amortized @ 20 years. Refi possible when balloon comes due.

Just had to appraise it.

The owner was willing to finance for 25 years with 5% down. (Loan payoff refinance required to settle his estate upon his death, he was 80)

In the end it wasn't the property for me

I'm sure there's other options but WF was pretty flexible even willing to reduce appraisal costs due to high number of units.

If you really need a name PM me.