All Forum Posts by: Adam Craig

I am purchasing a foreclosure that has been accepted for 50K pending inspection. I was able to get the electric and gas turned on but the water company is being difficult -

First, there is no water meter in the basement. Second - the water company wants the deed to be in my name to turn it on, they are terrible to deal with.

So I am very fearful of purchasing the house without getting it dewinterized and getting the water one. This house has been winterized for 2 years!

What do I do? I am going to put around 5K already and I am willing to put more because it is a great deal. Is it too risky to purchase without getting the water on? What kind of costs could I be looking at with leaks ect...

I think a lot of us suffer from the grass is always greener theory. I guess I hear about these markets in Phoenix/Miami/Texas going up 20-30%. I also know that prices are low in Cleveland but where is the demand EVER going to come from? The areas I mentioned above have so many draws and population will continue to boom. Arnt these the markets you want to be in with appreciation in mind.

When I see a turnkey company thats been in business for 9 years, 500+ properties, and A+ rating on the BBB for example - wouldn't it be pretty difficult to achieve this kind of success and BBB rating pissing clients off.

I am not saying I wont do my homework on the deals - checking the neighborhoods and running comps. But it seems like a good turn key company will have a strong incentive to put a good tenant in the property since they will be managing them.

As a 25 year old business owner - I approach real estate as a long term investment. I get excited about appreciation, amortization, and tax benefits more then cash flow. Not to say I don't need them to cash flow but I am willing to take less to hire a PM and rent SFH in decent areas.

I currently own 2 properties in the Cleveland suburbs where I live with PM managing them - but I eventually want to invest out of state. Because of my primary business, time is money. The time I would have to spend traveling to new markets looking for deals/finding realtors/contractors and managing repairs would hurt my primary business and not offset my lost income from not running my business.

With that said - I have been thinking a lot about TURN KEYS. Are turn key companies used by anyone here in BP that can chime in? I read all the pros and cons - I understand you have to find the right company (lots of bad ones) and will probably pay above market. But for someone in my situation with a business to run and money to spend - would it be more important just to get into the market rather then get in below market value?

I know the ROI would be less then if I found the deal myself. But with historically low rates and prices, I feel an urgency to get in.

If you were in my situation, what strategy would you use to invest out of state?

As a business owner trying to make real estate investing as passive as possible (though I know it cant be 100% passive) - I dont see myself getting my real estate license. If investing was full time for me then I might consider it.

I met an investor at a meeting who told me they were able to get the lock box codes and it enabled them to act more quickly on deals. My agent is a friend I went to high school with and I dont want to threaten his license so after hearing that I am not going to ask him.

Thanks for your thoughts - that cleared it up. I will continue to use my agent for all showings and offers.

This applies to the MLS -

I am currently getting the daily update email for new properties and price reductions that meet my preselected criteria from my realtor. He is a good guy and I want him to get the commission for all the houses he as shown me so far.

So what do I do when I see a new MLS listing that just hit the market and I want to go see it right away. This happens fairly often and this poor guy will be driving all over town to make peanuts. Can I have the lock box conversation with him - is it common for investors to get codes for the houses to save time.

This leads me to my second question. Are investors typically loyal to one realtor? And do I need my own realtor to make an offer or can the listing agent make my offer. For instance - I find a foreclosure on the MLS that I want to go see - Can I just call that listing agent for the showing and then have them make my offer?

Thanks!

I am getting ready to make my first investment purchase. I came up with a list of 6 properties that will produce what I consider adequate cash flow. I dont have anything on my list that needs major rehab work (that I know of) - only things like carpet/drywall/paint/cosmetic issues. My goal is to keep rehab costs under 8K ball park - if it needs more then that I dont want to bother.

With limited rehab knowledge - what is the best way to go about inspecting these properties. I have a good home inspector that I used a couple times that only charges $250. Should I be using a home inspector or should I bring a contractor with me....or both?

What is the best way to narrow this list down without having 8 home inspections done.

Thanks!

Thanks Scott - I appreciate the confirmation

I am also taking into account - better areas better tenants. Single family can potentially have less turnover then multi. And resale of SF is easier then multi.