Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
I was wondering if any oos/out of state investors hire a real estate expert/consultant in the area they are looking to investor or do they spend months trying to learn the market by themselves or do they work with a real estate agent that might be just trying to sell them a property? Seems to me that a small amount of money up front could save $1,000s and make sure they know the values for that asset type in the area they want to invest in (A,B,C or D areas). I have not seen many people offer this service (at least in the cleveland area),
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
7y
I do a lot of what you're talking about in Cleveland in a very informal sense. I'm always talking/meeting with other investors looking at the area to give opinions, do walkthroughs, rehab estimates, and impartial opinions on properties. I've helped a few get stabilized as well. Sometimes for a fee, sometimes for a partnership opportunity. It's easy to make a win-win in real estate, so you can be pretty creative.
Earlier this year I moved to the area specifically to be able to spend more time on the ground since everything is just easier. Seems everyone else needs that kind of resource as well since so many wholesalers, brokers, PM's, contractors, etc., will tell the out of state people whatever they want to hear to get a deal done.
I was wondering if any oos/out of state investors hire a real estate expert/consultant in the area they are looking to investor or do they spend months trying to learn the market by themselves or do they work with a real estate agent that might be just trying to sell them a property? Seems to me that a small amount of money up front could save $1,000s and make sure they know the values for that asset type in the area they want to invest in (A,B,C or D areas). I have not seen many people offer this service (at least in the cleveland area),
What are you looking to do? Flip? If so, I would talk to other investors.
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Tom Ott I am an active investor (mostly flipper) in the Cleveland market. I am also an agent and appraiser. I offer consulting services to out of state investors looking to invest in the Cleveland market but was just wondering if there are others who offer these kinds of consulting services (not agents looking to sell them but strictly advise them) in the Cleveland area or through the US?
Developer · Boston, MA · Member since 2017 · 125 posts · 137 votes
7y
@Vince Lucas HI Vince, I have good and bad experiences doing exactly what you are talking about here- happy to connect with you and share experiences if you would like.
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
7y
@Vince Lucas I think most of the time your best resources are other investors and agents of investors/investors themselves too. You can find great resources that would accept money to tell you about the area sure, but you could also find great partners to team up with and not have to pay them - other than a profit split for being "boots on the ground" or whatever they contribute.
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
7y
I do a lot of what you're talking about in Cleveland in a very informal sense. I'm always talking/meeting with other investors looking at the area to give opinions, do walkthroughs, rehab estimates, and impartial opinions on properties. I've helped a few get stabilized as well. Sometimes for a fee, sometimes for a partnership opportunity. It's easy to make a win-win in real estate, so you can be pretty creative.
Earlier this year I moved to the area specifically to be able to spend more time on the ground since everything is just easier. Seems everyone else needs that kind of resource as well since so many wholesalers, brokers, PM's, contractors, etc., will tell the out of state people whatever they want to hear to get a deal done.
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Grant Rothenburger If you can find a very experienced investor who is willing to give you their time for free, of course that is a good option. I understand that you can find partnerships and not have to pay a small upfront fee but you give up a bigger piece on the end. There is nothing wrong with partnerships but I feel that you need to be careful just partnering with people and it takes time to know your partner fully and by the time you do that time is long gone. Also, I have seen a lot of investors and agent say a lot of things and unable to make their statements/opinions with actual concrete information, not to mention the comps that some Realtors have given me when I am appraising for the purchase of their listings. Sometimes its nice to have a professional give you advise in their specific niche.
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Ryan Evans I am sure many people provide their opinions about different aspects of investing but how many are actual experts at what they do? I understand the whole boots on the ground thing (I have done that as well) but I am talking about providing actual values/comps, different trends that are going on and other data that out of state investors (and to be honest many local guys do not know or are able to find) do not fully understand or have access to.
Nice to hear you made the commitment and moved to the cleveland area (Welcome!).
Yes, that is a problem, people telling others what they want to hear because they are selling them something. Best to have a third disinterested party give you the facts and let you make the decision that best fits what the individual investor is looking to do. Could easily save you thousands and prevent you from into a bad deal that costs you time and money.
Investor · Padstow New South Wales, Australia · Member since 2015 · 38 posts · 27 votes
7y
@Vince Lucas
I'm not just out of state, but out of country. I have 12 units scattered through northern Ohio.
The very first one was bought with the guidance of other people experienced in the local area, it has been my worst performer.
The rest I did a lot of thorough in depth research from macro through to micro on a whole range of different metrics to find the best properties. These have been far more successful.
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Laurence K. Congratulations on jumping in and becoming an active investor in the Northeast Ohio market. There are obviously a lot of factors that go into having a property perform up to its potential with property management company being the biggest. I am glad to hear you did your research (which everyone should obviously do before buying, even if they are going to use consulting services). My thing is that no matter how much research you do from a far, there is nothing you can do to get the knowledge and feel from a local expert. Even if you think you know everything (God help you if you do) there is nothing wrong with getting it confirmed and therefore you can move forward without any doubts. Where are you properties located in the Cleveland market (west or east or both)? Glad to hear you are having success!
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Vince Lucas. I would definitely consider this but it would depend on the price. I can find most of what I need on BP and through other investors for free. So the value add component would have to be pretty strong
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Caleb Heimsoth If you are able to get everything for free then I dont see how I can be of service to you. Just be careful with their "free" information (you know what they say, you get what you pay for). If you decide that you think I could add value with my experience as an agent, appraiser doing over 500 appraisals per year and active investor, feel free to reach out. All the best!
@Grant Rothenburger If you can find a very experienced investor who is willing to give you their time for free, of course that is a good option. I understand that you can find partnerships and not have to pay a small upfront fee but you give up a bigger piece on the end. There is nothing wrong with partnerships but I feel that you need to be careful just partnering with people and it takes time to know your partner fully and by the time you do that time is long gone. Also, I have seen a lot of investors and agent say a lot of things and unable to make their statements/opinions with actual concrete information, not to mention the comps that some Realtors have given me when I am appraising for the purchase of their listings. Sometimes its nice to have a professional give you advise in their specific niche.
Well of course I wasn't telling you to meet someone one time and do a deal with them! I help host a meetup here in Cincy and have personally seen the power of networking. We've brought people together that worked on deals that never knew each other before. You definitely have to make sure they are legit - and them you. But that is definitely a time tested way to partner with people.
Now about the free part - everyone I'm referring to that did deals together were not charging each other for consulting or anything.
All that being said, our greatest resource is without a doubt time. If you have the money to save the time, then heck hire hire a mentor/consultant. But I'm not sure you shouldn't spend as much time (maybe more) vetting them as you would an investor at a meetup that might partner for free. So that may take away the "saving time" idea.
Lastly, a lot of mentors, consultants, whatever - charge upfront and want in on your deals for a split, so you may not be saving money depending on who you found to help you and what their structure is.
@Caleb Heimsoth If you are able to get everything for free then I dont see how I can be of service to you. Just be careful with their "free" information (you know what they say, you get what you pay for). If you decide that you think I could add value with my experience as an agent, appraiser doing over 500 appraisals per year and active investor, feel free to reach out. All the best!
Wait, you're suggesting to be the consultant? I misunderstood, and based on the comments from others, they did too.
I thought you were just asking opinions on this because you were considering hiring one.
Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
7y
@Grant Rothenburger I completely agree with networking and looking for partnerships. Of course your not going to charge your partner that you are doing a deal with. The services I was referring to were strictly consulting on a specific deal (ARV, as is, rents, etc) or a general over view of a particular city (trends, etc) based on facts and local perspective being a realtor, appraiser and local investor in the Cleveland market. I was not looking for partnerships or anything like not. I agree with you regarding these so called "mentors" not really having your best interest in mind just want to use you to get more deals.