All Forum Posts by: Xavier Allen

@Jason 

@Jason Weible Thanks for responding.  I think you have what we're looking for.  I want to speak with you.  Expect my call.

Greetings All.

I am searching for homes, multi-families in the Cleveland area where the owner is willing to structure the purchase in some form other than a conventional bank loan.  Our goals are to capture these small but steady revenue streams, return capital to financiers, and repeat the process.

•  I have a pipeline of prospective renters and I need properties to place them.  These are working class and/or subsidized housing tenants.  My team has developed the cultural & community expertise, resources and networks to manage this demographic very well.  
• We run our own construction crews, so properties that require some work are not an issue for us.

We currently have a VERY unique situation. A client with a LIFETIME rent voucher is in need of a 3+ bedroom home immediately. She has until May 26th before it expires. It can pay up $1,200/month. 

I am asking for any one of the following:

1. To buy a home to place her, OR
2. Financing to purchase. 

These lifetime vouchers are very rare (I had never heard of them) and I don't want to lose this revenue stream, especially when the client wants to live in the city.  Can we talk?

BTW, my apologies for being redundant.  I replied at the bottom of the first page of comments and didn't realize there was an entire other page to this feed.  My thoughts have been expressed by others ahead of me.

Again, much success...

@George P. Take a look at the varying opinions/approaches you have received here...this is exactly why it behooves you to bring in one or more qualified professionals, licensed, bonded and insured, who will pull a permit and go on record as having done the proper work and stand by it with his/her money.

Just because the wood is rotten and not supporting anything does NOT make it safe and negligible.  In fact, on an outer wall, which is carrying quite a bit of load, it may be beguilingly accessible.  Also, keep in mind, you are placing quite a bit of trust in the builder(s) who have preceded you.  There is no guarantee everything is built to handle what you are expecting it to.  Finding out with a live body and money can be regrettable.

As far as sistering the studs, what is the incremental cost for using a properly sized stud in dollars and time?  Are you really saving that much and is it worth the risks?  Not for me.  I can see leaving as much of the old stud as possible because the facade is attached to it (and it provides more surface area for interior wall hangings), but I prefer a continuous stud from the top plate to the bottom plate.  Be certain to use a moisture barrier between the bottom plate and concrete, and even consider a pressure-treated bottom plate.

As far as messing around with the facade, I have not yet worked with one personally, so I would work with a pro first to learn more before I begin tackling it solo.  That's one of those things that when it goes wrong, it probably goes big.

Our philosophy is that there is the right way(s) to do something, and varying degrees of the wrong way.  Ultimately, everything comes down to someone must pay now or pay later.  Many real estate investors I've met are so married to their numbers that in spite of loads of great advice, they are still going to do what they wanted to do.  That said, I wish you and all subsequent users of that property the best.

@James Wise @Account Closed 

Thanks for the welcome! I have participated in a number of REI groups and by far this is the most active and substantial...in just a few days. I definitely look forward to meeting, supporting and collaborating with Clevelanders and out-of-towners. If there is ever anything I can assist with, please just ask. That includes help with math, by the way...I still make time to teach a course of math or two each semester!

Hi Amy,

Wanted to shoot you off a quick note before I head in to teach this course.  I do not know agents or wholesalers in Pitt.  However, one of my closest friends is from there and only recently moved...he didn't necessarily do a flip but he bought a fixer upper, made it awesome and sold it while he was there finishing his grad degree.  In the process, he learned a great deal about the market and may be able to offer some insight to assist you.  If you're interested, I'd be happy to connect you guys.  He's currently a professor in Indiana and I'm sure will be happy to share what he knows that may be of assistance to you guys.

Let me know...

Best,

X

Thanks, guys.  Likewise, I love to see the home team representing!

@Timothy Murphy III You can't say that enough!  One of these days we'll get a chance to swap war stories...I wouldn't trade them for anything.  They're the gifts that keep on giving.

Hi Diem,

Sometimes, sellers use this exact situation to strengthen their position and put the buyer in situation to make rushed decisions.  The advice so far is really good.  You are in for the long haul as an investor, at least I hope so since you're considering this type of project.  That said, you can't place enough emphasis on developing a relationship with quality General Contractor and Elec/Plumbing/HVAC contractors.  This should be ongoing activity on your part.

For this deal, another approach to consider is get worst case numbers (demo & replace) from contractors and use them for negotiations.  It can help create incentive for the seller to provide speedy access to the property, come clean about its issues, or back away if they were trying to sucker you.

Also, building style and area can also give you an indication of what to expect.  For example, in my area we have mostly older homes in the city.  So it's safe to presume there are moisture issues with the foundation and water management will be a part of the cost of ownership.  Similar characteristics may prevail in your market.

Greetings, All!

My name is Xavier Allen and I, with my brother, have been involved in real estate since 2005.  We began with what we thought was a simple facelift multiunit project to begin our real estate investing dreams.  We were mistaken, to say the least, lol.  Instead, we opened a can of worms that lead us through one of the most grueling and rewarding educations we had ever experienced.

The outcome of that introduction was really 3-fold: 1) We were more determined than ever to succeed; 2) We appreciated the difference between theoretical, inspirational information versus practical, real-life information; and 3) We can be a greater service to ourselves, the community, and other investors, by providing responsible, intelligent and conscientious construction contracting and property management.

We live and work in the city and understand its dynamics, so the majority of our business takes place there.  We are also well-connected in the inner ring suburbs and have extended our reach there, as well.  We are working to change the way people live and invest in Northeast Ohio.  We want to acquire more properties in the city for our portfolio...many of the SFRs we hope to turn around and help people become progressive owners.  We also are working to grow our construction business and continue to evolve as community developers.

I am a graduate of The Ohio State University and Case Western Reserve University.  My background is mathematics, engineering, and education.  I've worked in education and small businesses, including a couple decent startups.  If you remember anything about me, let it be that I am open-minded and imaginative in my work and I value people and relationships over money and things.

It is my pleasure to meet you all!