All Forum Posts by: Samuel Diouf

Hey Alec, a lot of investors based in markets that aren't cash-flowing right now are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

Prices are still low enough to find 1% rule deals, and there's a ton of appreciation happening in certain markets as well. I actually moved from Florida to Ohio for the real estate. I saw how fast the market was growing and decided to make the jump.

Hey Kevin, I can share a few. Good luck with your offer! 

What market are you personally in?

I'd say house-hacking is one of the best ways to get into real estate investing. You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

Being able to purchase a property with only 5% down means you can leverage your money way more effectively. When you’re investing with leverage, I think it makes more sense to do it in a market that’s showing plenty of signs for growth.

Hey Travis, I've had quite a few clients complete successful BRRRRs and flips from OOS. 

I think the most important thing is to have an actual understanding of the selected market. I also always suggest if you're more risk - averse to start with turnkey deals until you get a solid understanding of how OOS investing works and how your team operates... That way, you can see if you need to change anything before you jump into the higher risk projects.

I've also seen a lot of deals where the seller is a tried OOS investor who fell on their face because they jumped into the market blindly without the right preparation and connections. 

Hey Michael, if you want to stay in contract.. I would have the buyers deposit a larger earnest money amount and have the entire amount be deposited directly to you... before you make this agreement, I would have your agent call the lenders and see what the actual situation is.

Make sure the addendum includes that the EMD is nonrefundable.

Have you looked at smaller markets in the Midwest? 

We're still finding a ton of deals that cash-flow (C-B class areas) in my markets. I actually have quite a few clients who are based out of Chicago. They moved markets because of that same lack of cash-flow that you're seeing right now.

Hey Kendra, There are a couple great PM companies in Cleveland. I'd be glad to send you some referrals.

When looking online, I would make sure to read what the reviews are actually saying because a lot of people are leaving bad reviews on these companies because they either had a bad experience with real estate and want to point fingers or are unhappy tenants.

Welcome to Bigger Pockets Aaron!

Cleveland, OH is a strong market to invest in! I started investing here after moving to Ohio from Florida for the growing market. I spend all day sourcing deals now.

Hey Zalman, for value-add deals in Columbus, we're seeing margins stay around 75-80% of the all in cost. 

The deals that hit the market are usually going to be overbid on by local buyers who have in-house crews. The majority of the good value-add deals we're seeing are coming from off-market opportunities. 

Hey Rick, a lot of OOS investors use a local real estate agent to represent them on transactions with wholesalers.

The agent can negotiate on your behalf to make sure you can do due diligence and that you have the right protection in the contract. 

I'd also recommend to have an attorney review your real estate contracts any time that you're using contracts that aren't standard from the Board of Realtors.