Out of State Investor

10 Replies

Good afternoon BP,

I need your help. I am new investor looking to do my very firs deal. This weekend I met a gentleman from Cleveland OH after introducing myself as a real estate investor, he proceeded to let me know that he's going through a divorce and he has a 3 properties that he is trying to sell. Two of the properties he owns free and clear and the 3rd property he has a mortage on.

Being unfamiliar with the area, I'm looking for some guidance on what investors are looking for in the Cleveland area and what are they willing to pay. And any good information that I may be missing.

First of all, welcome to the site! It's a cash flow market here for the most part. There are cases where you can literally buy a property for a dollar, so without knowing what part of town these properties are in it's tough to say what investors are willing to pay. Cleveland is block-by-block in a lot of parts of town. Though, a lot of the mid-class neighborhoods you can still buy for 40-60k a unit. 

Originally posted by @Erron Fayson :

Good afternoon BP,

I need your help. I am new investor looking to do my very firs deal. This weekend I met a gentleman from Cleveland OH after introducing myself as a real estate investor, he proceeded to let me know that he's going through a divorce and he has a 3 properties that he is trying to sell. Two of the properties he owns free and clear and the 3rd property he has a mortage on.

Being unfamiliar with the area, I'm looking for some guidance on what investors are looking for in the Cleveland area and what are they willing to pay. And any good information that I may be missing.

 Give The Ultimate Guide to Grading Cleveland Neighborhoods a read. This should give you a solid base of market knowledge to start the negotiations with.

Hey @Erron Fayson , welcome to the site! I agree with @Ryan Evans , Cleveland neighborhood quality varies block by block. There are parts of town where houses on one street are $300k+ and literally just one street over they're less than 100K.

I've seen that Ultimate Guide to Grading Cleveland Neighborhoods article mentioned above. That should be taken as an introduction, not as gospel.

Thank you guys for all of your inputs. I will put your advice to work.  Right now I'm trying to decide on how I want to approach this. 

One of the homes is in the 1200 block of E 61st St.,  for $40K.  It is already occupied with 3 tenants who are paying $1200/mo. This is something that would be great for a non-profit who deals in Sobriety as it is a Sober House. He would like to see that work continued but it's not a requirement.  The tenants are aware that he is selling the property

Second home is in Maple Heights on Centuryway Rd. 3/2 with a detached garage. It has been renovated and updated to code with permits being pulled.  Asking price $94K 

Last property is on the 5700 block of Whittier Ave. 5bdrm/4.5bath/3.5 garage with mud room 4000sqft

3 bedrooms and 1 full bath upstairs. On the main level is a master suite and on the opposite side of the house an in-law suite with ADA bathroom. Gourmet kitchen with custom cabinets, granite counter tops. Dinning room has gas fireplace. Hardwood floors. Central air through out and zone heat. In the basement 40X60 area he has a 12' bar, lament floating floor, pool table , sewing room, exercise room, laundry room theater room 24X30 with 12' retractable ceiling with 8 reclining movie chairs. This house is unbelievable.

Every home is move-in ready or turnkey. These properties are a must see and they are a great deal.

Originally posted by @Erron Fayson :

Thank you guys for all of your inputs. I will put your advice to work.  Right now I'm trying to decide on how I want to approach this. 

One of the homes is in the 1200 block of E 61st St.,  for $40K.  It is already occupied with 3 tenants who are paying $1200/mo. This is something that would be great for a non-profit who deals in Sobriety as it is a Sober House. He would like to see that work continued but it's not a requirement.  The tenants are aware that he is selling the property

Second home is in Maple Heights on Centuryway Rd. 3/2 with a detached garage. It has been renovated and updated to code with permits being pulled.  Asking price $94K 

Last property is on the 5700 block of Whittier Ave. 5bdrm/4.5bath/3.5 garage with mud room 4000sqft

3 bedrooms and 1 full bath upstairs. On the main level is a master suite and on the opposite side of the house an in-law suite with ADA bathroom. Gourmet kitchen with custom cabinets, granite counter tops. Dinning room has gas fireplace. Hardwood floors. Central air through out and zone heat. In the basement 40X60 area he has a 12' bar, lament floating floor, pool table , sewing room, exercise room, laundry room theater room 24X30 with 12' retractable ceiling with 8 reclining movie chairs. This house is unbelievable.

Every home is move-in ready or turnkey. These properties are a must see and they are a great deal.

 Anything in Cleveland leave to local investors. For Maple Heights 30K would be a good price.

Thanks Igor. After talking to a few ppl that are from the area, I got the feeling that it’s best to do just that; leave these homes in the hands of someone local. So now I’m looking for some investors who would like these properties.

@Erron Fayson I am OOS investor and I invest in Cleveland. Since this is your first deal I would get a realtor that can make sure the title is clear on these properties and ensure that these properties are in decent neighborhoods. A realtor can also help with the inspections and ensure that the houses that require a POS, are compliant. If they are not compliant then you need to either fix them or negotiate a lower price.

I wouldn't back off from a good deal just because someone tells you not to invest. Just make sure you get a professional to help you.

Originally posted by @Erron Fayson :

Thanks Igor. After talking to a few ppl that are from the area, I got the feeling that it’s best to do just that; leave these homes in the hands of someone local. So now I’m looking for some investors who would like these properties.

 Wow. You figured out very fast that selling "turnkey properties" to OOS is the most profitable activity in Cleveland.  You can go even further - package deals for Opportunity Funds.