Wholesaling in Cleveland??

10 Replies

Hello Bp, 

I am going to be returning to Cleveland in early August. I am looking to wholesale properties and wanted to know a little bit more about wholesaling in Ohio. I know coming from Pennsylvania it's going to be different, but is there any problems that wholesalers run in to in Ohio during deals?

Originally posted by @Sean Dean :

Hello Bp, 

I am going to be returning to Cleveland in early August. I am looking to wholesale properties and wanted to know a little bit more about wholesaling in Ohio. I know coming from Pennsylvania it's going to be different, but is there any problems that wholesalers run in to in Ohio during deals?

 Yea several issues including the legality of it. I suggest transacting as an agent if you hope to make any money.

I heard Ohio js one of the states that cracks down on people a lot for this. More then other states

Originally posted by @Sean Dean :

@James Wise Thanks for that. What other forms of low to no $ down investing would you suggest? Or other forms that you've found work best in the Cleveland area? (I do not currently have a license to be an agent)

Buying a 1-4 unit house to live in using an FHA loan is the only way to invest without any money. All the other strategies are just junk people sling to sell books.

@Sean Dean  

Not sure what part of PA you are in, but the Pittsburgh market is very similar to Cleveland, so would be a parallel move in my opinion. 

I am speaking from a place of being challenged by the state on wholesaling, and it is NOT illegal. You do need to operate from a place of intending to close, not just playing middle man and walking away from deals that do not close, that is what real estate agents do. 

Your biggest challenge is going to learn the market here and competing with investors like me that have spent our entire careers in the Cleveland market.

  It is possible, I have bought from out of town wholesalers that have assigned me contracts, but for every property I bought, there have been 10 offered to me that were not good deals and the only way to know that is to know the market better. 

As for getting licensed as an agent, that is a completely different career path than being an investor. There is nothing wrong with it, but it is different. 

So my advice in a nutshell...

1. Get financial backers to fund you for deals that you find in case you need to close on the contract. 

2. Pick a market and REALLY LEARN IT!  Know it street by street. 

3. If for some reason you do decide to become a licensed agent, make it worth your while and sell some high end stuff, LOL

Originally posted by @James Wise :
Originally posted by @Sean Dean:

@James Wise Thanks for that. What other forms of low to no $ down investing would you suggest? Or other forms that you've found work best in the Cleveland area? (I do not currently have a license to be an agent)

Buying a 1-4 unit house to live in using an FHA loan is the only way to invest without any money. All the other strategies are just junk people sling to sell books.

REALLY? I respectfully disagree. 

There are multiple ways to buy properties without any of YOUR OWN cash. Obviously someone has skin in the game, but to say that those strategies are "junk" to sling books is just not accurate. 

I can tell you first hand that although many of the deals I do I use my own cash for, I am involved in plenty of others that I do not have any of my capital invested. 

I am not saying this to start a battle of words back and forth, I just do not want one of the new guys on the site to believe it is impossible to buy with "No Money Down". It is possible and a part of most real estate investors day to day life.

Originally posted by @Rob Gillespie :
Originally posted by @James Wise:
Originally posted by @Sean Dean:

@James Wise Thanks for that. What other forms of low to no $ down investing would you suggest? Or other forms that you've found work best in the Cleveland area? (I do not currently have a license to be an agent)

Buying a 1-4 unit house to live in using an FHA loan is the only way to invest without any money. All the other strategies are just junk people sling to sell books.

REALLY? I respectfully disagree. 

There are multiple ways to buy properties without any of YOUR OWN cash. Obviously someone has skin in the game, but to say that those strategies are "junk" to sling books is just not accurate. 

I can tell you first hand that although many of the deals I do I use my own cash for, I am involved in plenty of others that I do not have any of my capital invested. 

I am not saying this to start a battle of words back and forth, I just do not want one of the new guys on the site to believe it is impossible to buy with "No Money Down". It is possible and a part of most real estate investors day to day life.

 lol, Rob don't you sell coaching or mentoring of some sort?

@Sean Dean You can wholesale in Ohio, just use an option with a non-refundable deposit.

The story is that you can't post an ad with a photo or address of the property you have under contract, and you must only advertise the contract you have for sale. So you need to run an ad like: "FOR SALE: Contract for 3/1 in Glenville area. 40% below value. Willing to sell contract for $10,000."

Or you can skip the ads altogether and build a buyers list by calling local investors off their for rent ads.

Or you can hire an agent to market the contract for you.

You can also buy on lease option, contract for deed or subject to. None of which require your own money.

Originally posted by @James Wise :
Originally posted by @Rob Gillespie:
Originally posted by @James Wise:
Originally posted by @Sean Dean:

@James Wise Thanks for that. What other forms of low to no $ down investing would you suggest? Or other forms that you've found work best in the Cleveland area? (I do not currently have a license to be an agent)

Buying a 1-4 unit house to live in using an FHA loan is the only way to invest without any money. All the other strategies are just junk people sling to sell books.

REALLY? I respectfully disagree. 

There are multiple ways to buy properties without any of YOUR OWN cash. Obviously someone has skin in the game, but to say that those strategies are "junk" to sling books is just not accurate. 

I can tell you first hand that although many of the deals I do I use my own cash for, I am involved in plenty of others that I do not have any of my capital invested. 

I am not saying this to start a battle of words back and forth, I just do not want one of the new guys on the site to believe it is impossible to buy with "No Money Down". It is possible and a part of most real estate investors day to day life.

 lol, Rob don't you sell coaching or mentoring of some sort?

I really do not "coach" any new investors for a fee. I will guide them for free.

My goal is to work with one of three types of people .
1. bring me a deal
2. partner with me
3. be the bank
Everyone has to bring something to the table. There is no "Get rich quick pitch"

Attached is a screenshot from one of my landing pages for marketing.

You can make money LEGALLY with no money down, but it is work!