Cleveland and Holton-Wise?

Question

I am looking for input regarding Cleveland in general and Hilton-Wise in particular.

1. CLEVELAND

What advice or thoughts do you have on Cleveland as a long-term rental market, specifically for SFH, duplexes, and quads? I am interested in pursuing a BRRRR strategy in order to acquire multiple properties over the next 5-10 years. I currently have $55-60K to get started and I'm open to using hard money if the numbers work.

I will be investing from out of state, so I will need to build a team on the ground.

I have read in multiple places that location within the city it important. I would welcome any comments on specific locations and/or zip codes as well. I think I would prefer at least a C+ neighborhood.

2. HOLTON-WISE

I have had contact with Hilton-Wise and have done a little bit of research about them online. If you have used Holton-Wise for purchases, rehabs and/or property management, I would be interested in hearing about your experience, positive or negative.

Thank you!

Nicholas Misch · Answer

Do lots of research before making a decision on who you will use for PM and to buy, sell and contractors. Call around to investors and investing agents in the area and get a really good idea if they meet your needs both personality and ethically.

Russell Brazil · Answer

@James Wise is well known, and has a hugely abrasive personality that can and does rub a lot of people the wrong way......but when it comes to business and real estate....he is absolutely 100% brutally honest. No BS with him, and no scams.  He isnt going to sell you a giant turd and tell you it's gold.....he will still sell you the giant turd, he is just completely honest that he is in fact selling you a giant turd.

He runs a tight ship, which with the lower tenant classes often means the tenants are not too happy getting evicted. He has plenty of videos of those on youtube.  He is I believe, (or at least has in the past) been the largest multifamily broker in northern Ohio.

Melanie Martin del Campo · Answer

You don't say in your post how much experience you have as a real estate investor, so I will chime in with my background and my brief experience with Holton-Wise and you can see if it is helpful.  I was a first-time real-estate investor from California and I decided to invest in the Cleveland area because my daughter was moving there for college and I knew that I would get a chance to visit and see the area.  I found @James Wise's videos to be extremely helpful and I purchased a 10 pack of his analysis videos.  We put in two offers together.  One seller decided that he wanted more money than I offered, even though I was over listing price and there weren't any competing offers and one told us that I got the property and then never contacted us again.  @James Wise was an incredibly efficient agent, which meant that we did not ever talk in person and the offers were placed with minimal communication but his videos were very straight-forward and no BS, as @Russell Brazil mentioned.  That is what attracted me to working with James in the first place.  But in the end, I decided to work with a different real estate agent who is more of the traditional model - we speak frequently about my offers and talk often through the process. I had so many questions as a newbie that I would have driven James nuts.

I purchased a quad in Strongsville, Ohio and a duplex in Garfield Heights and have a property manager managing them.  I do have some regret right now with not staying with James, because for the first time one of my units is vacant and needs extensive repairs.  My property manager is not accustomed to helping with extensive remodels during a turnover - I could really have used Holton-Wise to handle the remodel for me.  As an out-of-state investor this remodel will be challenging.  Now that I have more experience as well, James' model would work for me much better.  I don't need as much hand-holding through the process.  I still have four videos outstanding and I would definitely work with him again, especially if I were going to buy again in Garfield Heights or Cleveland proper.  Hope that helps.

Scott Mac · Answer

I have no investments in the area but, James is dealing with some of the tougher renters in town...

if he went around "Kissing Kittens" they would hand him his head.

There is a reason they open carry in some of his videos.

Some of the properties (but not all) they manage are in rougher areas with some shall we say "Harder" personalities.

He does not come across as abrasive to me, in either his posts or his videos.

I think he's spot on for the demographic--fair and balanced--but not "Kissing Kittens".

It would be smart to call him up and talk to him, then decide if he's the guy you want filling your vacancies and collecting the rents for you.

Just my 2 cents.

Joseph Howard · Answer

Thank you all for the replies.

@John Nachtigall I especially appreciate you sharing your personal experience. Would you be open to communicating more either via DM or possibly a phone call? If like to get some more details of you'd be willing to share more.

JD Martin · Answer

Bwahahaha! So spot on it made me laugh :DUs northeast guys tend to like James because he's no BS - he walks the walk and talks the talk. If you like being coddled and having your ass kissed, JW is not your guy. If you scare easy, he's the guy to use because he's going to give you some horror stories.

If I was investing in Cleveland I'd use him in a second. Unfortunately, I can't seem to tag the Blue Man. I'll have to see if I can in editing...

Edit: Nope. Oh well.

John Nachtigall · Answer

I own 4 properties (8 doors) in Cleveland for 3 years and used Holton-Wise from the beginning. I can relate my experience which has been good.

First, I would say the most valuable service that James provides is his property analysis.  For a few hundred dollars he will honestly analyze any specific property for neighborhood quality, condition, prospective rent, etc.   it is invaluable for a remote buyer and is sold ala carte so even if you don’t use any other services I would use this for any property you are going to buy in Cleveland.  It simply makes remote investing possible and significantly reduces risk.

I also used the companies real estate agents to buy the properties, manage, and even provide insurance.  They take care of everything except the utilities.  All repairs and construction, tenet management, etc they take care of, for a price of course.  I have always received prompt service and any issue have been resolved well.

I specifically own in class B area which exchanges some cash flow for easier tenets and less drama and I have been very happy with that choice.  I had full payment during the pandemic and very few tenet issues in 3 years.

On the downside, If you are looking to maximize your return then I would suggest you will not be happy.  With 10% management fee plus fees for tenet placement and profit for repairs/construction you could manage it cheaper on your own.  But without these service I would not be able to own remotely at all.  I would never put the effort into remote landlord if that would be required and even if I did I doubt I would be successful.  So it is a perfect service for me.

In summary, I have been very happy with the company.  They helped me pick, buy, renovate, rent and mange 4 duplexes with me providing minimum effort.  I hope that provides at least 1 perspective.  Good luck

Joseph Howard · Answer

Thank you @Russell Brazil.  Have you personally used any of Holton Wise's services? If so, I would be interested in hearing anything you might be willing to share about your experience in addition to what you wrote above. I've watched a number of HoltonWise videos on YouTube, but I'd like to get some feedback from customers as part of my due diligence.Thanks again.

Cleveland and Holton-Wise?

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