All Forum Posts by: Zelda Chiu

I am from Los Angeles, moved to Cleveland two years ago for work. Housing prices are so high in California that it makes it really hard to even start. Cleveland, on the other hand, seems to have a lot of great opportunities to offer. I'm looking to invest in commercial real estate, specializing in multi-family (5+) category. A good friend of mine started OOS investing in Kansas City, including a 16- and 24-unit MFH. It has been a huge success, and that surely got my attention. She highly recommended this platform, which I'm so glad she did!

I would like to start my first deal locally, preferably within a two-hour drive. If you're a MFH investor, agent, broker, expert, and have any wisdom or experience to offer, I'd love to connect! Currently, I am working on getting together a team which includes a buyer's real estate broker/agent, commercial mortgage broker/lender, real estate attorney, property manager. Any ideas where I can look for these professionals? Any reputable local individuals that you'd recommend? I am still very new to the area and the market in general, any advice or guidance will be very much appreciated!

Give this bad boy a read. It should help you learn the CLE market a bit better The Ultimate Guide to Grading Cleveland Neighborhoods.

P.S.

Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

I've been reading that! It's really useful information about the area. I drove by some of the areas, and some definitely look sketchy. What do you think about West Boulevard neighborhood?

Those are all good points that you mentioned, I've read them from a book too. Will make sure all those get done, and listed as contingencies to make sure I'm covered.

West Blvd area is a C-Class area. Really no different than any other C-Class area in town. Your tenant base is a mix between low income workers, those on SSI and Govt subsidies. Manageable but Moderate to High amount of riff raff should be expected.

I have been researching and kinda aiming at C+ class. West Blvd looks like it's a safer neighbor than East Cleveland C-D, what's your thoughts? Even Lakewood is like divided into two sides by 117th. Was looking into Lakewood, but its city property tax is definitely on the higher side. What area would you recommend that's C+ or B-, cash flow, value add opportunities down the road?

0 Votes

Originally posted by @James Wise:

Originally posted by @Zelda Chiu:

Hello BP community!

Give this bad boy a read. It should help you learn the CLE market a bit better The Ultimate Guide to Grading Cleveland Neighborhoods.

P.S.

Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

I've been reading that! It's really useful information about the area. I drove by some of the areas, and some definitely look sketchy. What do you think about West Boulevard neighborhood?

Those are all good points that you mentioned, I've read them from a book too. Will make sure all those get done, and listed as contingencies to make sure I'm covered.

0 Votes

Hi Damein! I'm also new to investing in Cleveland. Happy to network, and talk more about it.

0 Votes

Originally posted by @Greg Dickerson:

Originally posted by @Zelda Chiu:

Hello BP community!

It's tough right now with Covid but you can look up REI meetups and groups in the area and start networking via Zoom or equivalent platform for virtual meetings. You need to learn the market so start studying rents and occupancies. You can study deals for sale on LoopNet and CREXI and connect with brokers there. Make sure to download, read and study the OM thoroughly so you can engage and ask intelligent informed questions when you reach out to the brokers.

Thanks for your response! Is there a specific platform that I can locate those REI virtual meetings?

0 Votes

Hello BP community!

1 Vote

All Forum Posts by: Zelda Chiu

Zelda Chiu has started 1 posts and replied 5 times.

Post: Commercial Real Estate Investment in Cleveland, OH

Post: Commercial Real Estate Investment in Cleveland, OH

Post: Any Cleveland Ohio investors willing to network

Post: Commercial Real Estate Investment in Cleveland, OH

Post: Commercial Real Estate Investment in Cleveland, OH