All Forum Posts by: Rob Gillespie

@Christopher Owens

Do not believe everything that you read about cash flow. A lot of cash flow is only performing on paper and not in reality.

Northeast Ohio has plenty of cash flow properties, but it is best to back off of the huge returns a little bit and get really nice returns that are still reliable.

That’s my two cents.



@Todd J Killian

I always say that good deal Will bring all of the buyers you need.

At a glance that looks like a six Cap. If it has more potential, how much money will it take to bring that potential out and how much of an increase in rents?

I am personally selling an off market 40 unit right now that is a value add, and I am not marking it anywhere. I am lightly putting it out there and the buyers are coming to me. With that said, I have all of the data that it will take to turn it around and make it a winner.

I’m not saying that your deal is not good or I’m not saying that you do not have the data, I’m just telling you what brings the buyers.

Hope that helps

@Jeremy Shechter

Warrensville is not Cleveland. 

In cleveland you need to register your house, but that does not apply to you. 

Classes are for Section 8. 

You just need to make sure you comply with Warrensville. 

I am the President of the Greater Cleveland Real Estate Investors Association. Feel free to reach out at any time with questions. 

@Jon D. I think it is gonna be pretty tough to find an investor on here that does those two specific markets. 

I think any market is good for something. Ya just need to figure it out. I am personally looking in Broward county right now. 

I think it is tough for rentals, but great for flips!

I have driven through Charleston, but never analyzed it. 

If I am gonna choose and area, It is Cleveland Ohio! :-)

@Jon Sutton it is tough to use any calculator to figure out market movement. 

This is like a Sailor watching the water and the winds. The weatherman can only tell em so much!

just watch market times and prices. Make sure you look at what is moving and what areas. You will get a knack for it. 

This is just my opinion, maybe others have great luck with software.

@David Williams

Awesome!! Congrats. Keep it going!

@Crispin Walsh 

So, would you advise:
1. Putting the rental property in the LLC? LLC
2. Do we need any other type of insurance other than home insurance such as Landlord policy, insurance for the LLC etc.? homeowners policy
3. How soon do you recommend we refinance? Depends. I would not close at that price. I would find a reason to negotiate. 

Ok, I do not want to bring ya down. I know this is exciting and your first deal. I do have some questions though. 

How long was the home on the market?

What does the home need in repairs?

I would advise you to never be into a property for more than 70% LTV completely finished. If you are into it higher than that, you need to ask yourself what is the upside? If there is not a big event that is gonna elevate the price fast, then you are over paying in my opinion.

Not thing you should fly out, Just hire a home inspection for a few hundred bucks and use his/her findings to negotiate the price down to 38k less any repairs that need completed. 

If you are not embarrassed of the offer you are making... You are offering too much. 

@Bryan Igboke

I was gonna make an ice cube joke until I saw ya mention NWA, LOL

I deal in areas sometimes that are just as bad as the stereotype of Compton. It is not terrible. 

My only thought on Compton is that the prices of homes are so high it is tough to make them cashflow. 

It would seem to be more of a buy and sell neighborhood. 

I would love to chat and analyze a deal in compton for ya. It would be fun to know the actual numbers there. 

Good luck! Keep pushing and stay focused. There is money to be made... Even in Compton!

@annie 

@Annie Johnson

not sure why it is not closing. 

I would file an affidavit of memorandum to cloud the title. 
this will stop them from selling to another party. 

In the meantime, I would go look for another deal and return to this one when they are ready. 

if nothing else, it would be a good opportunity to wholesale in the future. 

@Westlie Jones

I had ZERO experience, NO mentor, NO idea what I was doing. 

Bigger pockets did not exist... Heck the internet didn't either, LOL

I paid retail. 

I financed the heck out of the house. 

I was a terrible manager. 

I duplicated the process and bought a bunch more. 

I thought I was smart and quit my great paying job with benefits. 

I spent all of my savings. 

I had houses go vacant. 

I could not afford repairs

Had too little equity to list them. 

Ultimately gave a couple back to the bank and had to get my business in order or I was gonna fail at life!

Figured out how to wholesale, then rehab, then rent and manage the right way. 

Fast forward almost 24 years and I am still learning every day! 

a very blunt and quick answer that could be a lot better story if I was telling it and not typing. LOL