Hungry Cleveland Investor Looking to Build Network

Hungry Cleveland Investor Looking to Build Network

Investor · Cleveland, OH · Member since 2016 · 12 posts · 2 votes

Hey All,

I first joined BiggerPockets after stumbling upon it while researching real estate investing.  I've been looking to get into the business for years.  I've always had a love for real estate and recently left my job with a Big Four Accounting firm to join a real estate developer in their management accounting group.  The idea here is to learn all I can in this group before moving on to a finance position or perhaps even a development position.  That is my goal and I plan to achieve it. 

As for investing in real estate, I'm not entirely new, as I did purchase a duplex back in April that I'm also living in.  I've made some improvements and am closing on a home improvement loan currently that I will use to flip the remainder of my side of the house. 

I've spent the last month or so reading articles (a lot on here), listening to podcasts (also on here), and reading close to a dozen books from the likes of Robert Kiyosaki, Donald Trump, and even Brandon from Bigger Pockets.  I think I'm ready to get the ball rolling on my investment career.

My goal is to close my first investment deal (second if you include the duplex I live in) in early-2017.  I've been looking at anywhere between a duplex and 10 unit buildings.  I would also like for it to be a local property (west side of Cleveland, north of 90 or just south of it).  What does the community think of my plan, is a 10 unit building overly aggressive for my first deal? How would you structure financing if you were in my shoes? I will have partners on the first deal, so I should be able to commit at least a 10% down payment.  Any other advice for my first deal?

I look forward to sharing ideas and potentially doing business with some of you in the future!

- JC

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  • Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Joe Coyne:

    Hey All,

    I first joined BiggerPockets after stumbling upon it while researching real estate investing.  I've been looking to get into the business for years.  I've always had a love for real estate and recently left my job with a Big Four Accounting firm to join a real estate developer in their management accounting group.  The idea here is to learn all I can in this group before moving on to a finance position or perhaps even a development position.  That is my goal and I plan to achieve it. 

    As for investing in real estate, I'm not entirely new, as I did purchase a duplex back in April that I'm also living in.  I've made some improvements and am closing on a home improvement loan currently that I will use to flip the remainder of my side of the house. 

    I've spent the last month or so reading articles (a lot on here), listening to podcasts (also on here), and reading close to a dozen books from the likes of Robert Kiyosaki, Donald Trump, and even Brandon from Bigger Pockets.  I think I'm ready to get the ball rolling on my investment career.

    My goal is to close my first investment deal (second if you include the duplex I live in) in early-2017.  I've been looking at anywhere between a duplex and 10 unit buildings.  I would also like for it to be a local property (west side of Cleveland, north of 90 or just south of it).  What does the community think of my plan, is a 10 unit building overly aggressive for my first deal? How would you structure financing if you were in my shoes? I will have partners on the first deal, so I should be able to commit at least a 10% down payment.  Any other advice for my first deal?

    I look forward to sharing ideas and potentially doing business with some of you in the future!

    - JC

    Hello Joe,

    Welcome to BP! it is always nice to see another Clevelander on here. Sounds like you have a great plan started already! Feel free to send me a message with any questions.

  • Marlon FongPro Member
    BiggerPockets Support · Bridge City, TX · Member since 2016 · 1k+ posts · 367 votes
    9y

    Welcome to BP @Joe Coyne! Great to have you here.

    BiggerPockets
  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y

    Welcome aboard@Joe Coyne

  • Real Estate Agent · Chicago, IL · Member since 2016 · 283 posts · 71 votes
    9y

    Welcome Joe! Fellow investor agent here in Chicago

  • Flipper/Rehabber · Cleveland, OH · Member since 2016 · 133 posts · 69 votes
    9y

    Welcome @Joe Coyne

    Congrats on starting your investment doing the house hack. I am also newer to investing (a couple flips). I do not feel a 10 unit is overly aggressive but all depends on your specific situation. I would suggest doing a lot of research and get a good network in place before you make the move. I tried to purchase a apartment last year and had problems with getting financing. There is a large amount of information and experienced investors on this site who are willing to help. I have been told to attend the Great Lakes REIA meetings and plan on it.

    Good Luck!

  • Investor · Cleveland, OH · Member since 2016 · 19 posts · 8 votes
    9y

    Hi Joe, Welcome to BP.

    I recently purchased an 8 suiter in Lakewood. 6 apartments and 2 storefronts. I paid cash for a quick close then went to a bank for some leverage. Here's what I found. First, banks like apartment buildings, more than they like commercial. In my case they discounted the cash flow on the commercial. So having all apartments would be good. Second, I had to have 25 percent down. You may find 20 percent but you wrote that with partners you can have 10 percent down. I don't see that as enough for a bank loan. If I was in a position where I didn't have much cash, I would stick with BRRR investing. Good Luck!

  • Rental Property Investor · Davenport, FL · Member since 2016 · 593 posts · 382 votes
    9y

    @Joe Coyne Welcome to BP and good luck with the investments. 

  • Real Estate Agent · Westlake, OH · Member since 2014 · 186 posts · 165 votes
    9y
    Joe Coyne Welcome to BP! You didn't mention whether you planned on managing the 10 unit property yourself- but if you do that might be a lot to handle starting out. Is moving out of your two family into say a Lakewood 4-family an option? If so that would solve the low down payment issue
  • Investor · Cleveland, OH · Member since 2016 · 12 posts · 2 votes
    9y
    Originally posted by @Barry Wittine:

    Hi Joe, Welcome to BP.

    I recently purchased an 8 suiter in Lakewood. 6 apartments and 2 storefronts. I paid cash for a quick close then went to a bank for some leverage. Here's what I found. First, banks like apartment buildings, more than they like commercial. In my case they discounted the cash flow on the commercial. So having all apartments would be good. Second, I had to have 25 percent down. You may find 20 percent but you wrote that with partners you can have 10 percent down. I don't see that as enough for a bank loan. If I was in a position where I didn't have much cash, I would stick with BRRR investing. Good Luck!

    Thanks Barry.  I think I might now which property you bought, lot of potential there. Good luck with that!  As for my next deal, the more I think about it - it'll probably be closer to a 4-unit than a 10-unit.  With that said, I should be able to come up with 20%.  4-units is still considered residential, so that should be sufficient with a traditional bank loan, correct? 

  • Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    Welcome @Joe Coyne!

  • Investor · Cleveland, OH · Member since 2016 · 19 posts · 8 votes
    9y

    I think 4 units is considered residential but I'm no expert. Maybe someone else know?

  • Investor · Columbus, OH · Member since 2015 · 134 posts · 48 votes
    9y

    ahyup, 4 unit is residential.

  • Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Joe Coyne

    Welcome to Bigger Pockets. The Bigger Pockets book store if full of great books: https://www.biggerpockets.com/store

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