All Forum Posts by: Jared K.

 Yes I have seen some of these issues other places too but find it ridiculous and unnecessary when I can do just as well if not better (due to the additional costs/time) other places and avoid the headaches.

And once again Ohio has tried to make it more difficult to move their inventory and to push out not only wholesalers but agents and investors. Ohio does some of the most ridiculous things and then wonders why they have dilapidated neighborhoods/houses that nobody wants to buy?? Well, stupid things most people do not have to deal with everywhere else is one of them. I have bought and sold in Ohio and have ran across some of the stupidest things. 1. (Toledo) Water bill transfers with the house and not the person who used the water. It has to be paid before the property can be transferred and they don't care if its at the buyers expense or the sellers but it holds up a sale and in my opinion the person who used the water should be liable and it should not hold up the sale. 2. Code enforcement wants to fine you right after you buy houses just to make a buck and keeps you from selling the house to someone who IS going to fix it up, why didnt they make the bank fix it before it was sold (whiole it sit empty for 3yrs) instead of me....hmm??? I bought it to resell and at least someone is paying the taxes on it! 3. Many Brokers have decided to charge a $2500 min fee on any house sold, well some of the houses dont even sell for that price and it doesn't cost that to take a picture and print in a magazine so the fee makes the deal a bust therefore it sits there rotting. 4. I have gotten more frustrated with agents/brokers that have a bad attitude in the state of Ohio than any other state, sorry but its true and I know not all of you are that way so forgive me if your not but loose the ego people its a huge turnoff for business and your no more special than anyone else. 5.Title/closing costs are outrageous!! Coupled with the Brokers fee's no wonder even more deals are a bust and are vacant and rotting. 

For these reasons, and others, I decided I was DONE with Ohio. I can make better money with a lot less headaches elsewhere. 

Good Luck Ohio!!

I own an older triplex and dont have any issues with owning older properties. It is actually built like a rock b/c they used true 2x4's and I believe they are oak, so hard you can barely drive a nail in em!! Good part is this place was well built and major settling has long past. Many older properties were built better than properties in recent years. There wasnt as many codes etc back then so it all boils down to how and who built it.

I would suggest you have a reliable home inspector or builder look it over and discuss your renovations with them to get the best feedback. You shouldnt have a big problem getting rid of the skunk smell especially if your remodeling and replacing carpets etc and painting but I would use a Kilz or my favorite is Bullseye 1-2-3 (has a stain, mold, moisture, and odor blocker). 

As to the #'s if they work out to provide enough cash flow for your investment model then go for it. Every investor has a different investment model and guidelines to determine if they will buy or not. Some are more risky and some more conservative. I would highly recommend you consider looking at all the variables and rely more on your evaluation of the deal than anything.  I would consider what area rents are and how long the properties in the area stay rented as well if it is in an older area of town.

Best of luck

Update paperwork with the seller to seal in your deal and give them more time. If they wont update the paperwork then you have to weigh your options but I would put the responsibility on them as agreed. It may be the tenant and court system causing the delay.

Do you know if the seller is pressing forward or just taking their sweet time?

Just my opinion but your exit strategy should determine the answer. If you plan to hold these properties for a long time I would go fixed. The stock market and rates are a gamble and if I were your bank looking to finance you more property I would take that into consideration for your business plan. If you plan to sell this asset down the road in 7-8yrs? I would maybe take the risk but also consider the business plan factor for loans as well. I would prefer fixed myself, just my opinion.

I usually tell them "I understand if you want to be home and I might would be the same way so if both of our schedules align we would be glad to do that otherwise we would need to enter the unit at a convenient time for us to complete the work."  This is especially true when using a contractor b/c we are usually on their schedule, which can be a good thing to relay to the tenant.

I am usually the one that does the work or I am present during any repairs so I insure the tenant we don't bother any of their belongings or have any use for it, just need to get the work done. If I am using a contractor I explain to the tenant (if I can not be present) that the contractors are professionals that enter dwellings on a daily basis to do their job, that's all they care about, and if there had ever been a problem with an employee like that I am sure they wouldn't be employed there.

I have been wholesaling off of the MLS since before they started having "boot-camps". Just because a retailer sees it on the MLS doesn't mean they live in your city, have the time to look at every property or maybe they didn't make the lowball offer you did at the right time for the seller to say yes. If everyone looks at it the way you do then there is a whole lot of opportunity for everyone else that has been making money wholesaling MLS deals for years. If you can offer a deal attractively enough below the MLS price it will get bought by someone who wants it at a good price.

Hope this helps :)

You could find a short term partner to cosign on the loan until you get your credit up then refinance after a year or pay a credit repair company to bump up your score 100pts within 90 days and write the offer allowing for a 90 day close for due diligence, pending financing etc. There are also loans out there by hard money lenders that do not look at your credit as much but you would want to refi in a year this way also b/c its expensive money. When you are looking to purchase a fourplex the bank is looking at the asset more than your credit to see if the income data is sustainable but they do look at your credit. They also will look at your history in owning/managing units for consideration. Make sure you have ran your cash flow figures correctly, have sound #'s for rents in the area, and multiple quotes for the rehab. You can never be too cautious when running the #'s so be sure you have included all the variable expenses before you move forward. 

Best of luck

I may tell them I buy to resell (possible owner finance) or to rent it but they usually dont understand wholesale or assign so I usually dont tell them, not their business anyway really as long as you buy it. If they figure out what it is they might become your next competition or blow you off.

I have dealt with quite a few of these properties myself over the years. There are some areas these homes are very lucrative and well worth picking up and some not so much. As long as a person has the right people in place to manage them you can make a lot of money with them and they can make excellent rentals. Just expect that most of your buyers, if you wholesale them, are going to need to be cash buyers b/c banks do not like financing under $50K homes. I would be interested in networking as well.