All Forum Posts by: Ricardo Navarro

 This was a few years back now but the jist of it was (if my memory serves me correctly*) that a request for a window AC unit to be installed came in. I had intimate knowledge of the property since I spent 6 months renovating it myself so I knew which window the unit could go into safely. The window frame they wanted to install the ac unit in would not accommodate the unit, was fragile and was also in a place where if installed incorrectly, could potentially hurt someone. This window was inline to be replaced so an alternate window was suggested. Dave did not want to accommodate that specific request inspite of my directions and explanation as the owner and the legal obligant to do so. His reasoning was that "I needed to let them be the managers". Needless to say I ended up handling the maintenance request myself in spite of having a PM in place to do so. At this point I am wondering what I am paying for. Shortly after that time I was made an offer to sell the building from a private buyer. The property was off market and I had no intention of selling. Regardless the numbers made sense so I decided to sell. During the transaction, I let Dave's PM company know that I'd be selling the property and transitioning ownership to which I received an imediate notice to cancel our property management agreement stating that they were not given first right to list the property as my representative. really?! Frankly, after the first experience, there was never going to be a chance for them to represent me in a future sale anyways.

Anyhow, the sale went off without a hitch and I have been self managing using a software called hemlane ever since. They have been great. They offer hybrid Managment solutions where you can control how much or how little you want to be involved in the management process. They can handle maintenance requests and coordination, tenant placement as well as mediation for delinquent rent if needed and more.

You can't beat their pricing for what you are getting either. Seriously its been great I would highly recommend. I have been using them since 2021. I manage 7 doors with them here in CLE and in Florida with this platform. 

I'm in the process of working out an affiliate deal with them. If any of you are interested in using their platform to manage your properties for a discount, PM/DM me and I'll shoot you a link. 

I do run all my own numbers. I use the calculators here and I use deal check as well. I did all of the work myself and know the ARV's in the area pretty well so that helped.

this is like my 8th deal and I analyzed deals for like 3 years before I bought my first property so that has gotten way easier.

i did not know the seller! scary right!? lol it was a lot of communication and laying out upfront what we wanted/needed from the deal and then making sure it was all written out in the paperwork. This helped ease any uncertainty I had, and then we just both kept our word and honored the contract. The document is pretty explicit with contingencies should anything go sideways along the way though so this helped a lot to keep everyone on task. we've built rapport at this point since we've been in constant communication from when we started but in the beginning, it was a lot of trust in the document. Honestly once the doc was signed, most of deal was on me to deliver. The seller is out of state and even visited the project a few times to check on the progress which I think helped him feel good about the whole deal as well. technology made the whole process a lot easier in the interim. I would shoot him regular updates to keep him in the loop. The further you get into the deal the more skin in the game you end up having so it just makes sure you see the project through so you recoup the time and cash invested. 

it was an interesting process but basically, the novation allowed us to get the deal done without having to involve the banks. this was a huge motivation. that way I save on having to close twice. I agreed to pay for the renovation with no interest credit cards. In exchange, I have first rights to sell the property through a power of attorney. once it sold, the seller get his agreed price, and I get the rest. I would do it again. You just want to make sure your paperwork is solid. we went with a company that specializes in writing them called creative tc. https://creativetc.io/

tell me about it! lol not sure what I am getting into this year but always looking. really trying to grow the unit count. i probably won't do a flip. I'll rehab and brrrr if it makes sense but I'll either stabilize my real estate company a bit or move on something if a killer deal crosses my desk. always looking for small multi's on clevelands east side. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $136,000
Cash invested: $90,000
Sale price: $260,000

full renovation from studs

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

wanted to do a full gut renovation for a flip

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

off market, novation agreement

How did you finance this deal?

intrest free credit cards and cash

How did you add value to the deal?

fixed the entire property

What was the outcome?

sale

Lessons learned? Challenges?

be sure to stick to your 70% rule for the flip, know your numbers. run everything conservatively. overbudget for time and costs but 15-20%

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Erin and Dwight Robinson are my realtors in CLE. They are investors themselves and are great at what they do.

I would also steer clear of ReMax Haven Property Management (Dave) Very poor experience and even petty and spiteful in the end. Incredibly unprofessional. Completely disregarded my wishes as owner. 

Reach out to Becky Thompson at Cleveland mortgage. And tell her I sent you.

Hey Pamela. DM me. I have some experience here in Cleveland and can give you a little insight. 

Thank you @Aaron W.