Ohio Cashflow LLC
Investor · Howey In The Hills, FL · Member since 2015 · 95 posts · 37 votes
Ohio Cashflow LLC
Most Popular Reply
Investor · Chico, CA · Member since 2017 · 10 posts · 25 votes
9yMy Day in the Life At Ohio Cashflow... I apologize for the long winded post.
I"m an out of state investor from Nevada, formerly from California (bye bye Cali). I realize this is an older thread but it was the first one that popped up when I searched BP for Ohio Cashflow... and I want to throw in my 2 cents.
I'm typing this out as I sit in my hotel room in Toledo (Hampton Inn is fantastic and close to the OCF office) after spending the day and evening with the team. I'm still trying to digest the day and that delicious rib eye (Thanks Engelo). But let me start at the beginning.
My wife and I are about to retire. I actually pulled the plug on the J.O.B. About a month ago which freed me up to travel to Toledo. We are moving to Central America this coming August and we needed a modest passive income stream to facilitate our minimalist lifestyle. We have sold it all (Except the Harley) including our primary residence that we had purchased and rehabbed ourselves over the past four years. It was a foreclosure and I did the rehab while we lived in it... we owned it outright and the sale was what we needed to begin our adventure in Turn Key properties. Our immediate goal was to acquire between 7 to 10 properties with a ROI between 3500 to 4000 a month. We were very calculating about our model and used a very conservative approach toward expenses. Keep in mind we are debt free and not interested in using leverage to get started.
I started my search for TK operators on the web and ended up here at BP. What an outstanding resource and I appreciate the time and effort by all the contributers here in the forums. Spending endless hours searching and vetting I had whittled it down to a few areas in the Midwest and the South. Memphis was first on my list because it was sexy and there was a lot of interest there. I spoke with a few operators there and we just didn't click. I'm not going to name names, but it just wasn't the right fit and it didn't match our expectations for our model. I moved on the the KC market and again... not a fit for us. Next was Indy, same story. Via email and phone and a lot or research we moved our attention north to Ohio.
It didn't take long to find the Dingo aka Your Favorite Australian. I made my appointment to talk to Engelo and he was actually the first guy to call me almost on time. 5 minutes late, we don't sweat the small stuff. Before I made my call I tried to dig up the dirt on him and his team. Nothing negative. Only positive. In hindsight I believe that anyone that has had a bad experience with OHF was probably not a good fit for this operator. I also watched a lot of his videos and Google walked the 5 Points area for days. The neighborhoods were interesting and I kinda fell in love with them. Spent time on Trulia and Zillo learning as much as I could about the area.
Our phone call was short and sweet. I was prepared with my questions and he had an answer for every one of them. He was everything I expected. Cocky, sharp and to the point. He asked for the good faith deposit and I layed down the 5k without hesitation. I shared with him my model with full disclosure and he put me in touch with Rebecca who sent me some deals. We crunched the numbers and walked with Google and made our decision to go with one to start.
The transaction was flawless and the communication between myself, my wife and Rebecca was outstanding and met every expectation. She asked us when we wanted to close escrow and we closed on that date. It took about 8 days. OCF introduced us to the title company and gave a referral for an insurance company (The one they use for their personal portfolios). Everything went super smooth... as if they knew what they were doing, LOL.
Bang, just like that we had our first property. Next we were introduced to the in-house property management team. Any questions I had about the PM were answered in advance by either Engelo or Rebecca. Our on-line portal was set up and all we had to do was wait for the cash to flow.
I made my travel plans to visit the team in person, quit my job and said "Let's buy another one". I wanted to have a few under my belt so when I got to Toledo I could visit them. The second one went really quick too. Sweet little 2/1 that yields 8.7% return after our conservative strategy. If I'm not mistaken we closed on that one in like 5 days. It would have been 4 days but there was the Memorial Day holiday in the middle.
Low and behold, on the 14th of the following month the money hit our account. True to his word we received rent on the one property that didn't even have a tenant in it. Not one hiccup to this point. It's onward to Toledo.
I flew into Toledo and got in late. We had a little mix up with what airport I was flying into but Rebecca picked me up and took me to my hotel. I was going to rent a car, but she insisted in picking me up. A very nice gesture. It was about 12:30 in the morning. OCF truly works around the clock. First class service. Ahahaha, she would even let me load my own bag in the back and she insisted I sit in the front with the driver, her husband. He is also a member of the OCF team working in renovations. If I'm not mistaken he oversees renovations. In the middle of the night I'm firing off questions and they in turn answered them all. I'm surprised they didn't tuck me in. The nicest of people, I tell ya.
Engelo's personal assistant, GG, picked me up in the morning and took me to the office. Along the way, more questions and answers. GG is a delight. Right on time, no surprise. When I entered the office I was greeted by the controlled chaos. Everyone was busy but they all took the time to get to know me. From operations to property management.. then acquisitions and finally the Dingo himself.
Engelo was everything I expected. The guy is a nut. Passionate and full of life and love for what he does and the people he works with. You know that feeling you get when you meet someone and you just know you made the right decision??? Yep, I had that feeling. He was interested in me and my success. His success come from his investors success... the people that work for OCF thrive off of his energy and he has tons of it... oh to be young and passionate... and smart. I got the feeling that working for this guy was a commitment like no other. I liked it. You just feel like you want to be part of it. You want to get on the train... and I did!
Rebbeca took me on a tour of the neighborhoods and I got to see my properties. One that has a tenant in it we could only view from the outside. We don't bother tenants. She was miffed that the lawn was not mowed and made a note to talk to the PM about it. I noticed the new roof and that the rain gutter was pulled from the awning. She made another note and said there were still a few minor things that didn't meet her appoval and that they would be taken care of in short order. Sweet.
On our way to the next property she showed me a few more that they either owned, managed for other investors and even some that they were wanting to acquire. Along the way she was asking the other investor advisor that was doing the driving why they didn't own this one or that one. They wrote down a few addresses. We stopped by one property they had recently bought that had not had any work done on it yet. We went in and I just had to shoot a video of it. It was trashed... I mean wrecked. And smell???? The flys were everywhere. Someone had painted the face of Jesus on one wall (I thought it was the Zig Zag man...) On another wall the word "Sorry". There was crap everywhere. The kitchen was void of appliances and torn up mattresses in the bed rooms. "But can't you see the potential?" Rebecca said. I wanted to go down into the basement (we don't have basements where I live) but I couldn't. The smell was too bad. She did say something about removing the dead body before we got there... I wouldn't be surprised except for the fact that the nice neighborhood didn't seem like the type akin to harboring dead humans... but whatever.
On to my property that was under renovation and almost complete. I took some pics and video of it. The floors were brand new. Beautiful laminate in the living and dining... new ceiling fans too. Tough linoleum in the kitchen but the appliances had yet to be installed. There was a lot of stuff on the countertops, but they too looked new and modern. Fresh paint with the baseboards and trim in gloss white. Upstairs and bedrooms had new carpet throughout and the job looked well done. They had a guy working on the one and only bathroom in this old 3/1 home. He was working on the shower. Like everyone else working for OCF, this dude was cool. I didn't want to waste his time, but he was happy to talk with me. Earlier in the day Engelo warned me not to waste his peoples time. I know he was half kidding but I wanted to respect that fact that these folks had work to do and I was in the way of that... ahahahaha.
There is obviously more lipstick to put on this pig before it's rent-ready, but it's getting close. My only knock is the attention to detail, but again... it's not finished. I look forward to seeing pictures of the finished product. What I mean about the little things is nothing more than getting paint on things that aren't suppose to have paint on them and no fresh paint that needs some. In the meantime, I look forward to seeing the rent hit my account, tenant or no tenant.
After a little more touring and visiting other opportunities they took me back to my hotel. I contacted my wife and she gave me the go ahead to pursue two more. She ran the numbers on the ones I liked and they ran COC of 8.3% and 8.6% respectively. Both are 2/1's in what Rebbeca calls the "Shoe Store Neighborhoods". She likes to shop there... not for shoes, but for houses. I really like the 2/1's but so does Engelo. Keep in mind that as he helps investors build their portfolios he is building his own... and he likes the 2/1's too.
I took a quick swim and got in some exercise before GG, Engelo's personal assistant picked me up and took me to the office again. There is a lot going on at the OCF office. There is construction going on down in the boardroom. We goofed around a bit and Engelo demonstrated his robot... yes robot. Before Engelo, Dominic, Rebecca and myself went to dinner there was one final thing that had to be done before we could go. We had to move a few boxes and center the table. When I say center the table, I mean center the table... to exacting measurements. It had to be perfect. And it was. Can you say OCD??? He is a mad man.
The four of us had a lively conversation during and after dinner at Longhorn Steak House. Funny, we all ate rib eye cuts. We enjoyed conversation and sharing each other's passions, visions and even a little business. For me, the time I spent with the crew only solidified in my mind that I made the right decision investing in Ohio Cashflow. I say "In them" because I really feel like I'm part of the team, not just a number. Engelo promised last night that he would review the inventory and get back to with some deals. He would like to see me diversify in other neighborhoods and suggested we look at others before pulling the trigger on what I'd suggested. I like that. He has a great understanding of my model and is eager to help me attain my goals and to look at even a bigger picture... So, I'm typing this out as I wait for the call. I know they are super busy today and if I don't get the call today, it's cool... we don't sweat the small stuff. We will do more business, that I am sure of.
I hope this review of my day with OCF helps you. I know the window of opportunity is closing with the operator and in truth I suppose I'm a bit selfish and like to keep this gem to myself... but that's not what I'm made of. I wish only success for this business and look forward to growing with them. I also know that this is not for everyone. Engelo can bet a bit brash, but I really relate to that. As others have said they only deal with cash buyers which also isn't for everyone... but I will tell you that if this model fits for you, you can't ask to work with or invest with a finer operation.
I know this all sounds like its all roses, but I'm sure there will be bumps along the way. None so far, but I know it will come. When it does, I know my best interest will be at the fore front. It's just how these people do business.
Thank you for taking the time to read this... and again I hope you benefit from my day here in the Midwest.
Mikie V
240 Replies
- Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes9y
I had a call with their acquisitions lead, Steven Steffel. He laid out their details and it all sounds legit. They do require a refundable $5k deposit to get on the "VIP" list and start receiving properties. Cash purchase only. The last one causes me to move on as I want to leverage (with out having to do a cash-out refi) any rental property I buy. They have updated their website so you can see more of the property details now.
- Rental Property Investor · Kirkland, WA · Member since 2016 · 60 posts · 19 votes9y
Originally posted by @Jay Hinrichs:
this company is like Avis rent a car they are not number one but they TRY HARDER
I have been following Engelo from his early days of somehow sneaking into our country from Australia... He has matured as a operator from what I can tell .. as is no news is good news on that front.
Hi @Jay Hinrichs, I'm curious who you believe to be "number one" :)
- 9yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Russell Pitts I stand by the Dingo.... we had one that did not go as planned and he made it right that is all you can ask of a fellow or company.... rentals are not guaranteed investments regardless were they are ...
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Patrick Shawn Faherty:
I had a call with their acquisitions lead, Steven Steffel. He laid out their details and it all sounds legit. They do require a refundable $5k deposit to get on the "VIP" list and start receiving properties. Cash purchase only. The last one causes me to move on as I want to leverage (with out having to do a cash-out refi) any rental property I buy. They have updated their website so you can see more of the property details now.
Who is @Steven Steffel?
That guy isn't with Ohio Cashflow hehe
Jokes
Sorry we couldn't assist Patrick.
Unfortunately, our business model doesn't suit everyone's needs and we are actually known for turning more down business than we take on.
Our doors are soon closing to all new investors and we will stop taking on new business.
We want to be known as the most exclusive and "hardest to be a part of" turnkey company in the country.
Much success with your endeavors
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Jay Hinrichs:
@Russell Pitts I stand by the Dingo.... we had one that did not go as planned and he made it right that is all you can ask of a fellow or company.... rentals are not guaranteed investments regardless were they are ...
Thanks much Jay.
3+ years in the business our reputation is blossoming>
In my opinion, this is very hard for a turnkey company as it's a very scarred industry.
Has S#%@ hit the fan on many occasions? You bet
Do we cover it? You bet we do
Everyone makes mistakes and especially those that put in the effort.
We always do our best by every investor and have their best interests at heart at any given moment.
As you once told me. A man shows his true colors in times of adversity and not triumph.
#Boom
- VP of Acquisitions and Sales · Columbus, OH · Member since 2016 · 40 posts · 25 votes9y
As @Engelo Rumora stated our business model doesn't suite everyone and we have a specific niche market that we greatly enjoy serving our investors goals and real estate vision.
@Patrick Shawn Faherty It was nice speaking with you and we wish you the best in your search for financial freedom and wish you much success in your real estate endeavors. Please feel free to reach back out should you have any question or If I can be of any assistance.
Cheers!
Steven Steffel
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Russell Pitts:
Originally posted by @Jay Hinrichs:
this company is like Avis rent a car they are not number one but they TRY HARDER
I have been following Engelo from his early days of somehow sneaking into our country from Australia... He has matured as a operator from what I can tell .. as is no news is good news on that front.
Hi @Jay Hinrichs, I'm curious who you believe to be "number one" :)
Memphis Invest is #1 Russell
Ohio Cashflow is 2nd haha
@Chris Clothier, are you gonna reply to my email or do I have to come and knock on your office door?
hehe
- VP of Acquisitions and Sales · Columbus, OH · Member since 2016 · 40 posts · 25 votes9y
Originally posted by @Engelo Rumora:
Originally posted by @Jay Hinrichs:
@Russell Pitts I stand by the Dingo.... we had one that did not go as planned and he made it right that is all you can ask of a fellow or company.... rentals are not guaranteed investments regardless were they are ...
Thanks much Jay.
3+ years in the business our reputation is blossoming>
In my opinion, this is very hard for a turnkey company as it's a very scarred industry.
Has S#%@ hit the fan on many occasions? You bet
Do we cover it? You bet we do
Everyone makes mistakes and especially those that put in the effort.
We always do our best by every investor and have their best interests at heart at any given moment.
As you once told me. A man shows his true colors in times of adversity and not triumph.
#Boom
Its hard to find the right people and company and this is one of my favorite aspects of being part of Ohio Cashflow... We always do what is right and in the best interest of our investors. We always look after our investors to be sure they are well taken care of.
- Investor · San Diego, CA · Member since 2016 · 69 posts · 18 votes9y
I am also following this. How's your investment going with OCF as it's been a year now? @Christophe Noualhat
- Investor · Quebec, Canada · Member since 2014 · 52 posts · 28 votes9y
Originally posted by @Sean Yang:
I am also following this. How's your investment going with OCF as it's been a year now? @Christophe Noualhat
First property doing good, the initial tenant left in November and we're having a difficult time finding a new one, seems to be a bad period to find tenant (January, winter, cold etc.. not a good time to move..), other than that I have reports that the property had been well maintained so no complaints there.
- Investor · San Diego, CA · Member since 2016 · 69 posts · 18 votes9y
@Christophe Noualhat that's great to know! In terms of finding new tenants. Is OCF doing that for you or do you need to use a separate property management firm? Thank you!
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Christophe Noualhat:
Originally posted by @Sean Yang:
I am also following this. How's your investment going with OCF as it's been a year now? @Christophe Noualhat
First property doing good, the initial tenant left in November and we're having a difficult time finding a new one, seems to be a bad period to find tenant (January, winter, cold etc.. not a good time to move..), other than that I have reports that the property had been well maintained so no complaints there.
Thanks for your vote of confidence Christophe and as per the Ohio Cashflow standard, we don't just want to "throw a body" in your property and call it "tenanted".
One of the #1 reasons it is taking longer than usual.
We want a tenant that will stay and pay just like your first tenant that occupied the property for 1 year and 4 months and took great care of the house.
I check in regularly with PM and believe we have a tenant lined up.
I'll gladly check with the PM team tomorrow morning to be 100%.
If not, we will cover the rent from today (You welcome) onward as I don't care how cold it is.
There is no reason it should be vacant for more than 2 months :)
Thanks
ps. Stop harassing my accountant. It's not his fault the IRS sucks hehe. Don't worry tho, our buddy Trump will sort that out for all foreign investors hahaha :)
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Sean Yang:
@Christophe Noualhat that's great to know! In terms of finding new tenants. Is OCF doing that for you or do you need to use a separate property management firm? Thank you!
We have in-house property management that is under a different entity in order to satisfy all of the laws and regulations here in Ohio.
List'n Sell Property Management is fully licensed and insured, etc...
All of the companies that are under the Ohio Cashflow umbrella are owned and controlled by me.
So as long as I'm living and breathing, everyone will do well.
If I die, you will be at the mercy of @Dominique Osborn and she is much meaner than I am so good luck haha
Thanks
- Investor · Quebec, Canada · Member since 2014 · 52 posts · 28 votes9y
@sean yang sorry for the late reply, didnt get the email notification for some reason... But then got the dingo's...
@engelo sais it all, I now deal with their sister company who puts tenants in and they offered to cover the rents after the second month without a tenant (had an email about that previously so not new to read it here and had nothing to do with the thread :) ) and as said before, things seem to be going well... Which is good for a property I own without ever seing it... Need to change that before there's a ban on French citizen...
IRS is a pain, been struggling with the accountant for a year to get an ITIN and be able to pay taxes... They are the worst administration I have ever had to deal with, and everything is paper !! I am not considering another investment in the US until this is sorted out, and also probably not while there is a bigot administration in place... Maybe considering pulling out actually.
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Christophe Noualhat:
@sean yang sorry for the late reply, didnt get the email notification for some reason... But then got the dingo's...
@engelo sais it all, I now deal with their sister company who puts tenants in and they offered to cover the rents after the second month without a tenant (had an email about that previously so not new to read it here and had nothing to do with the thread :) ) and as said before, things seem to be going well... Which is good for a property I own without ever seing it... Need to change that before there's a ban on French citizen...
IRS is a pain, been struggling with the accountant for a year to get an ITIN and be able to pay taxes... They are the worst administration I have ever had to deal with, and everything is paper !! I am not considering another investment in the US until this is sorted out, and also probably not while there is a bigot administration in place... Maybe considering pulling out actually.
You make it sound so terrible mate :)
I won't accept your cheese baskets anymore haha
- Investor · Quebec, Canada · Member since 2014 · 52 posts · 28 votes9y
Originally posted by @Engelo Rumora:
Originally posted by @Christophe Noualhat:
@sean yang sorry for the late reply, didnt get the email notification for some reason... But then got the dingo's...
@engelo sais it all, I now deal with their sister company who puts tenants in and they offered to cover the rents after the second month without a tenant (had an email about that previously so not new to read it here and had nothing to do with the thread :) ) and as said before, things seem to be going well... Which is good for a property I own without ever seing it... Need to change that before there's a ban on French citizen...
IRS is a pain, been struggling with the accountant for a year to get an ITIN and be able to pay taxes... They are the worst administration I have ever had to deal with, and everything is paper !! I am not considering another investment in the US until this is sorted out, and also probably not while there is a bigot administration in place... Maybe considering pulling out actually.
You make it sound so terrible mate :)
I won't accept your cheese baskets anymore haha
The IRS part ? It IS terrible !! An administration where it is so complex to give $$ to ? Never seen... Terrible, sad ;)
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Christophe Noualhat:
Originally posted by @Engelo Rumora:
Originally posted by @Christophe Noualhat:
@sean yang sorry for the late reply, didnt get the email notification for some reason... But then got the dingo's...
@engelo sais it all, I now deal with their sister company who puts tenants in and they offered to cover the rents after the second month without a tenant (had an email about that previously so not new to read it here and had nothing to do with the thread :) ) and as said before, things seem to be going well... Which is good for a property I own without ever seing it... Need to change that before there's a ban on French citizen...
IRS is a pain, been struggling with the accountant for a year to get an ITIN and be able to pay taxes... They are the worst administration I have ever had to deal with, and everything is paper !! I am not considering another investment in the US until this is sorted out, and also probably not while there is a bigot administration in place... Maybe considering pulling out actually.
You make it sound so terrible mate :)
I won't accept your cheese baskets anymore haha
The IRS part ? It IS terrible !! An administration where it is so complex to give $$ to ? Never seen... Terrible, sad ;)
Try the banks mate
I've been here for almost 5 years now and still can't have smooth transactions.
Disaster... :(
The high returns outweigh the issues with banks and complexity with the IRS in my opinion.
Especially since you are so complicated Mr C haha
Don't worry tho, The Dingo still has a soft spot for you in my heart.
ps. I had to cancel my trip to Paris 2 times now. First one was due to ER with kidney stones and second was ER with stomach ulcers so I've given up. Going to Italy in May instead haha
- Investor · Quebec, Canada · Member since 2014 · 52 posts · 28 votes9y
There's some hidden signs there... France is probably not for you :) Try Switzerland, great cheese !!
- Real Estate Investor · Kansas City, KS · Member since 2013 · 35 posts · 44 votes9y
@Patrick Shawn Faherty If you are still seeking reviews from investors who have worked with us, you can always check out http://turnkey-reviews.com :)
- Rental Property Investor · Bartlett, TN · Member since 2016 · 13 posts · 5 votes9y
Just closed our 2nd property with OCF last week. Bought our first one about six months ago. Everything has gone pretty smoothly for the most part. Engelo and his team do a fantastic job regarding communication and answering any questions you have. You certainly won't inquire about anything and have to wait long for an answer.
I also think they do a great job of looking out for their investors and trying to give them what they want. I know I had a lot of questions before / during working with OCF (as with other companies I've dealt with) and Engelo does a good job of explaining the way they do things and how it relates to the city of Toledo.
As others have stated, RE in general is somewhat risky (just like any other investment), however, I wouldn't worry about OCF / Engelo regarding where to use your investment dollars....in my experience, they do things the right way.
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Chris C.:
Just closed our 2nd property with OCF last week. Bought our first one about six months ago. Everything has gone pretty smoothly for the most part. Engelo and his team do a fantastic job regarding communication and answering any questions you have. You certainly won't inquire about anything and have to wait long for an answer.
I also think they do a great job of looking out for their investors and trying to give them what they want. I know I had a lot of questions before / during working with OCF (as with other companies I've dealt with) and Engelo does a good job of explaining the way they do things and how it relates to the city of Toledo.
As others have stated, RE in general is somewhat risky (just like any other investment), however, I wouldn't worry about OCF / Engelo regarding where to use your investment dollars....in my experience, they do things the right way.
Hey Chris,
Welcome to the forum and thanks for posting about your Ohio Cashflow experience.
We are super humbled to have you on board and are looking forward to serving your vision for many years to come.
Speak soon
- Investor · Reno, NV · Member since 2017 · 105 posts · 15 votes9y
It's now May 2017...any reviews more recent than the above?
- Rental Property Investor · Encino, CA · Member since 2014 · 48 posts · 10 votes9y
I invested in my first Ohio Cashflow property almost one year ago. Since the beginning, Engelo and his team have always kept me up to date on relevant information such as rehab and tenants. As with all investments, there will always be things that come up along the way, But the team at Ohio Cashflow always goes above and beyond to make it as passive for me as possible.
- 9yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Zach Winner:
I invested in my first Ohio Cashflow property almost one year ago. Since the beginning, Engelo and his team have always kept me up to date on relevant information such as rehab and tenants. As with all investments, there will always be things that come up along the way, But the team at Ohio Cashflow always goes above and beyond to make it as passive for me as possible.
Time flies mate but it's been more than a year hehe
Thanks for your kind words
- Rental Property Investor · Wentworth Falls, NSW · Member since 2016 · 20 posts · 24 votes9y
We invested with Ohio Cashflow in Feb 2017. Here's a review I'm posting around for all those interested in our OCF experience and story. It's long, but it was what I was looking for when I was looking through reviews :)
Ohio Cashflow Review
When I was reviewing turnkey operators to work with, I was looking for two foundational characteristics, trust and performance. How do I know I can trust them, and what is it about their performance that sets them apart from other turnkey businesses. I was looking for reviews which would give me some real information to help with my decision-making process in choosing the right business. So, I'm hoping to make this the type of review which would have helped me, in the hopes it will help you too.
The Australian market generally has a very high buy in price. It also has a much lower ROI compared with what I had seen in many of the US markets. Being a family without a large disposable income, like we had before children, we had to make a very considered choice of where to invest our funds. To get the best return for our investment my wife and I were considering investing not just from out of state, but out of country! Thus we started researching turnkey operators. We needed to find an organisation who could locate properties, rehab them, tenant them and manage them. Going the turnkey route made the most sense since we already had jobs and wanted a passive income, not another job. Finding a team we could trust was going to be paramount. However my belief is that no matter where you're investing from, your key starting point should always be forming relationships with people you can trust.
My wife and I have a great relationship. She trusts my financial judgement. So she was happy to let me do the due diligence and then make the final decision together.
The first thing I did was to start searching forums, particularly here on Bigger Pockets, to find other out of country investors, and in my case, Australians, who had successfully invested with turnkey operators in the US. I consider myself very blessed in having two key respondents, out of the many who did get back to me, provide me with the most helpful information. The first guy was a very experienced investor who amongst many, many other things, operated a turnkey review site. He recommended Ohio Cashflow as a business who had a 100% positive review status, and which was run by a fellow Aussie. This was great for me because I knew the US property market was a totally different beast to our Aussie market, and although I was getting myself educated in the differences, having a fellow Aussie on the ground would be very helpful. The second guy was a real-estate professional from Australia who had invested with Ohio Cashflow about a year prior. He was very helpful in educating me about the US market, his personal experiences and of course in Ohio Cashflow themselves. He was full of praise on how much integrity the team at Ohio had and how well they had looked after him. I particularly enjoyed his manner because he wasn't pushing me in any specific direction or being a salesman, but was just providing me with the necessary information with which we could make an informed decision.
So far I liked what I was hearing. I started building up a relationship with these two people who had made this same recommendation of Ohio Cashflow, and started building up some real confidence in their recommendation.
The man behind Ohio Cashflow is Engelo Rumora. Given he was originally from Australia I thought it would be prudent to find out from local sources what his back story was. I found out he was passionate about real estate. He'd had some early successes in Australia and then headed to the US to make his mark. I liked the fact that he had also had failures, but like all truly successful people, had learnt from these and become better through them. After a several years building his team, systems, network and brand, his US businesses are very successful. What was clear was that he had integrity. He was very transparent in all his dealings and didn't put any spin on what he was saying. He knew his product was valuable and was in a great position to partner with those he chose. Engelo has appeared on Bigger Pockets' forum posts, podcast and meetups, many other podcasts, blogs, news articles, TV news and his own YouTube channel videos. So there were plenty of avenues to get to know him and his companies. I particularly liked his philanthropy. One of his companies gave away a house to a needy family last Christmas.
Through my fellow Aussie investor, I contacted Engelo to discuss our goals. What instantly struck me was Engelo wasn't interested in building his business through quantity of customers, but was after quality. He was after a certain type of investor who was prepared to go on a journey with him and his team, an investor who wanted to build a long-term relationship of trust and commitment. So this interview wasn't just me seeing if I liked Ohio Cashflow, it was just as much to see if they liked me. We clicked. I was impressed by what Engelo had to say, and he likewise was impressed with our plans, outlook on investing, my research into him and his company.
Ohio Cashflow provide solid B class properties with a typical net ROI of 8-10%. The average investment is around the $70K mark. They were a true turnkey provider who locate properties in areas that would sustain the ROI through the property's life, they do a thorough and solid rehab, hand-hold the investor through the purchase, tenant the property and then manage the property with virtually no involvement required from the investor except to receive the great cashflow.
One key differentiator from other turnkey operators is that Ohio Cashflow (OCF) do all the property management in-house. OCF doesn't just sell the property to you and walk away, they have a vested interest in your continued success. Many unscrupulous PMs will try to increase revenue by inflating expenses and charging for unnecessary items. Being in-house and just a part of OCF's overall business, the property management team can keep costs to the investor low. Furthermore OCF do a great job on the rehab up-front to avoid many of the typical expenses you may incur downstream from the initial purchase, and they also look after any issues early on instead of passing them on to you. OCF also have a clear contract regarding damage caused by the tenant to ensure the tenant pays for those, so you, nor your insurance company, is liable. The investor just has to supply a $500 maintenance reserve with the PM to cover any of the smaller issues that require immediate attention. A courtesy email is sent to the investor for any expenses over $200. OCF provides an online web portal to view and track all the rental income and PM managed expenses per property. As is typical the property management rate is 10% of rental income.
One item which I found very impressive was that Ohio Cashflow do a rental guarantee. This means as soon as you close on the property you start accruing rent whether a tenant is in place or not. Generally OCF find a tenant within the first few weeks, but it's great to have that guarantee.
As for other expenses, the utilities and lawn maintenance costs are taken care of by the tenant. Closing costs are shared by you and Ohio Cashflow and are typically in the range of $300-400 on a $70K property. The investor covers property insurance (around $600-$700/year) and property tax ($800-900/year). OCF recommend an insurance company which specializes in insurance for rental properties, and is run by a group who are property investors themselves. You can however opt for your own insurance company. You pay the insurance company directly from your bank account, while property tax, maintenance expenses and the property management costs themselves are managed by the PM and come out of the rental income. The remaining income is then transferred monthly to your nominated bank account. If you don't have an account setup at the time of purchase, they keep your funds in a trust account which can be monitored through the online web portal.
So there were plenty of things that set Ohio Cashflow apart from the rest.
We felt satisfied that we had researched thoroughly. We felt we had established trust with Engelo and his team based on verifiable facts. We were ready to pull the trigger, and after bringing my wife fully up to speed on why I thought Ohio Cashflow were the team to go with, pull the trigger we did. Within a day we had been shown a property that was amazing value, and by the next day we had made the decision to buy. Having said this I want to emphasise that we never felt pressured into committing our money earlier, or above a limit that we felt comfortable with. It was the prefect first experience for a beginning investor.
Unlike most turnkey property businesses, Ohio Cashflow's communication is excellent. They regularly touched base with us through the purchase process and have continued this well afterwards to ensure we are happy and have all the information we require. They have all been very friendly and professional.
I'm someone who cares about details and I can say with confidence that Ohio Cashflow's team does too, being ready with answers to all my questions or having already taken care of items before I raised or requested them. This level of care and attention is one of the hallmarks of their business. Ohio Cashflow treats you not like a number, but rather as a valued member of their exclusive club, a part of their family. As I mentioned earlier, they eschew quantity for quality, within both themselves and also in the investors they choose to allow to partner with them.
Several months on I'm still just as happy with Ohio Cashflow. They've always gone above and beyond expectations.
A word about finance. Turnkey operations move properties very quickly. As such they generally have less time to wait for you to work through financing with the big banks. Most sales are thus cash. Now this doesn't mean you can't leverage. You can still get private money loans, cash out refinance or home equity lines of credit to fund your purchases, but just have all that worked out before you make the decision to purchase.
You might be asking what are the negatives. Well on a general level I've got to say I can't think of any. There were some things which they didn't have much experience with eg how to set up a US bank account without travelling to the US. This has become increasingly difficult to do since the Patriot Act, but I discovered ways to do this which were successful. Am happy to share if you contact me directly.
Turnkey isn't for everyone, so there are things which won't suit all people. Once you've established trust with the team it's very important that you let them do their job and not try and control every little detail of what they do ie if you're a control freak or don't trust them fully enough to let the team do their job the way they've found works best.
For my wife and I, we've found the decision to join Ohio Cashflow one of the best we've ever made.
Ohio Cashflow are known to turn down more people than they take on so my recommendation is that you have a clear understanding of your goals and do some homework before you contact them. Although they are very happy to chat, as with most turnkey businesses, they are quite busy and as I've said before, properties move quickly. So being ready to move fairly quickly and having most of your ducks in a row is advisable.
One of the most helpful factors in this whole journey was having mentors who helped me through the whole process. Having my mentors explain all the steps prior to introducing me to Ohio CashFlow, ensured I wasn't wasting their time. The mentors also helped explain exactly what sort of investors Ohio Cashflow were interested in partnering with, so we were confident that we fit the bill.
I hope this review has been helpful in your decision-making process. There's a lot more I could say about how to setup your company structure, asset protection, the legal documents, banking, tax etc etc. If you want to know what we did in more detail you can send me a colleague request and I'll be happy to help.
Wishing you all the best in your investment journey!
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