All Forum Posts by: Ari Hadar

R2own is a great way to dump off problem homes but a bad way to buy them . Tell her to get her credit right then buy I’d have her rent in the meantime until life settles back down

No, it's a great way to buy them based on specific reasons to want to use this way of buying. When you buy this way, you shouldn't be even looking at problem homes. I've used this method allot. As a buyer, you can hold a house while testing to see if you want to buy it. This includes anyone, including those who just got transferred for a new job and don't know the area. It works great for someone that works for a company that hired you based on a single contract, and if that contract extends, or if the employer likes your work, they will keep you on. Buying LO allows the "family" to tie up a house without committing to a long term mortgage.

These are just a few of the "non-credit issue" reasons why using LO to buy is great.

As an investor, it works even better.

Best explanation i've heard about the LO optionee... Why is it so good for the investor and how does he make the deal?

That's a long explanation. The Sandwich LO is where the big money is for the REI. I'll give you the highlights:

1 - The cost to get control of a property is minimal, and if you do it right, you should recover those costs almost immediately
2 - ...which means that cash can be reused quickly, and over and over again.
3 - There are 3 spreads where the profits come from -
a - Rent money
b - Option Consideration
c - When the Option agreement is executed and the sale made

How do you decide how much to charge for the option in the beginning, how much rent do you take more then market rent? What do you profit in the end if you set it 20 % above the option taking 2 years ago and the market rose by 30%?

0 Votes

Originally posted by @Joe Villeneuve:

Originally posted by @Dennis Wayne:

R2own is a great way to dump off problem homes but a bad way to buy them . Tell her to get her credit right then buy I’d have her rent in the meantime until life settles back down

These are just a few of the "non-credit issue" reasons why using LO to buy is great.

As an investor, it works even better.

Best explanation i've heard about the LO optionee... Why is it so good for the investor and how does he make the deal?

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Originally posted by @Joe Villeneuve:

I'll answer any question you might have. Just PM me. There's a lot of old school info that will just get you into trouble with the recent changes in lending laws.

Answer here so everyone can see

2 Votes

Originally posted by @Mary Schlabach:

So I'm just wondering if anyone is using the app "Deal Check"? Before I got into BiggerPockets, I started using this app. I'm just wondering if it's the same as using BP calculators?

It's better than bp calculator and i like it

1 Vote

Originally posted by @Ash Fields:

I agree with @Ari Hadar. It would be good to see the calculations. @Judah Josephs are there comps you can look at in your area? Even if they are just rough estimates to get you started. Or maybe there is a local, more experienced investor doing something similar. Keep us updated.

How do you tag me and make my name blue (i am with android phone)?

Do you manage to tell the ARV, rent from the comps?i always ask the agent about it...

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Originally posted by @James Wise:

Originally posted by @Ari Hadar:

https://dealcheck.io/s/-MRZTi1...

Here is a property from a wholesaler. 3/1,1150 sqft, 75k ask, arv 120k, rent 1000...it doesn't cashflow due to big tax 3744 $a year.

Here are pics of the property...

https://drive.google.com/folde...

Why is the tax so big and operational expenses are 59%?

Maple Heights has one of the highest tax rates in the Cleveland area. As such a 59% operating expense sounds about right. However big issue here is the $120k ARV is all smoke. Ain't nobody buying a SFR in Maple for $120k.............Ever.

Do you advise to steer clear of Maple Heights because of high tax like in Shaker Heights?

one PM told me indeed that the ARV is 75-85k only and the house worth 60-65.Regarding the operational expenses beyond 50% of the rent you can hardly cashflow...

0 Votes

https://dealcheck.io/s/-MRZTi1...

Here is a property from a wholesaler. 3/1,1150 sqft, 75k ask, arv 120k, rent 1000...it doesn't cashflow due to big tax 3744 $a year.

Here are pics of the property...

https://drive.google.com/folde...

Why is the tax so big and operational expenses are 59%?

0 Votes

You need to add the operational expenses, purchase cost(loan cost, loan service) ... Put it all in the calculator and share here

0 Votes

Originally posted by @Uri Gofman:

Originally posted by @Daniel Petta:

Originally posted by @Uri Gofman:

We've been investing in the Cleveland Ohio market since 1995 and have had good long term rental success. While prices have definitely risen in the past several years, there are still great long term buy and hold opportunities. The success formula is very simple. Put together a knowledgable local team that you trust, buy in stable neighborhoods where tenants want to live, stay on top of maintenance and capex. It's a time tested formula that has created long term wealth for millions of people. Don't try to outsmart the market when you're new. Invest safely initially then as you gain more market knowledge and perhaps build up your reserves, you can look at more value add options where you can create additional equity at the buying event.

Great advise Uri. Working with local teams will be important and knowing that I can trust their judgement and city space that I just won't know as I don't live there. I guess maybe this is why when out of state investors can stick to the same market and not bounce around with investments in different states, so that you cull and understanding of a market over time and have more knowledge over time.

Excellent point Daniel. You don't have to be local to a market to eventually become very knowledgable about a given market. Focus and time can make anyone who's willing to make the effort, a market insider.

Do i need to focus on one neighborhood?

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Originally posted by @Johnson Yu:

Originally posted by @Ari Hadar:

Originally posted by @Johnson Yu:

Howdy Folks! I was doing some DD on Cleveland, OH and concluded that it might be a great market to enter in 2021 for cashflow & appreciation, due to a couple of things: What do you guys think?

Marco:

- Heath Sector is one of the major employers → increased aging population/more job growth
- Bioteh, fuel cell research & tech sectors all growing → forbes speculates could be next tech hub
- Opportunity Corridor (projected to complete in summer 2022) → revitalize the "forgotten triangle"
- Large businesses coming in & staying → Plug & Play (start up accelerator funding company), Link 59 (62,000 square foot complex), Sherwin Williams, NASA

Micro

- Great PTR ratio → Great cashflow
- Strong renter's markets → over 50% renter occupied
- Barrier to entry is low → scalable
- BRRRRable

Neighborhoods (highest appreciation rates)

Detroit Ave / W 25th St
W 25th St / Walton Ave
W 6th St / Literary Rd
Route 422 / Broadway Ave
W 7th St / Marquardt Ave
Castle Ave / Scranton Rd
Detroit Ave / U.S. Route 6
Lorain Ave / W 48th St
Lake Ave / Detroit Ave
Also check out @James Wise's guide to Cleveland Neighborhood!👌
https://www.biggerpockets.com/...

But the population is not growing for 10 years and so are the jobs not increasing.

Which neighborhood/cities are up and coming?

That's what I'm trying to figure out as well!

I was thinkung your data tell you all

0 Votes

All Forum Posts by: Ari Hadar

Ari Hadar has started 45 posts and replied 385 times.

Post: Rent to own help needed

Post: Rent to own help needed

Post: Rent to own help needed

Post: Is anyone using Deal check ✔ ?

Post: Need Deal analyze help

Post: A house in Maple heights, greater Cleveland, oh

Post: A house in Maple heights, greater Cleveland, oh

Post: Need Deal analyze help

Post: New Out of State Investor - markets analysis and off list deals

Post: 2021 Opportunities in Cleveland?! 👌Research Included