All Forum Posts by: Chuck Stagliano

I have been and continue to be a wholesaler in Cincinnati. I am adding a land component to my business.  My first market is in Tipton County Tennessee and I will soon be expanding to certain Texas and California counties.  I already have a piece of commercial land under contract in Covington Tennessee and will be marketing it soon, most likely as a wholesale deal, possibly with owner financing. I got it for approximately 10% of the assessed value, on a main highway in Covington, surrounded by commercial income property. If anyone would like to connect with me, please send a connection request or a PM. Thank you.

If the rents are raised to $1,800, the cash on cash return would only be a little over 10%, at a $92,000 price, considering 55% expenses and closing costs. This is without doing any rehab. That does not look like a screaming good deal to me, especially in a C or D neighborhood.  Perhaps you could renegotiate your price. Tough, but sometimes doable. Depends on seller motivation. Best of luck with it.

Jack. A couple of questions. Are you a broker as well as a wholesaler? I ask because you refer to your "client" whom you represent. I'm a wholesaler and I don't have clients. I have sellers from whom I buy and buyers to whom I sell. Sometimes I work with other wholesalers on a JV basis, which is a little different. What is your role here. Will you be buying and then wholesaling to the end buyer or are you looking for other wholesalers to provide inventory on a JV, co wholesale basis?

Thanks.

Hi A.J. 

Welcome to BP This is a great place to start and to make connections. I am a wholesaler in Cincinnati and would be happy to discuss the whole thing. Please contact me off line and we can set up a dialogue. You can send me a request to connect with a message. I'll be able to respond off line.

Regards,

Chuck Stagliano

Sunny,

You are getting excellent advice from Ben and Sean. They are both very experienced investors in Cincinnati. To find off market properties, you might try calling the owners of houses for rent. Sometimes a landlord with a vacant house might just be in the mood to get rid of it. You can get a daily feed from Zillow. i've done a few deals that way. Also, try Craig's List. There is abundant info there in both the Real Estate for Sale and Services sections. Motivated sellers will frequently post in these sections. You just have to be patient and methodical. Make a lot of calls. There's a deal in there somewhere.

Hi Sam. It depends what you want to do. There are opportunities throughout Cincinnati, depending on what strategy is being applied. I would recommend determining what your acquisition and exit strategies are first. Then start an analysis of the best areas in which those strategies could be successful. Picking an area first seems like the tail wagging the dog to me.

Regards and beat of luck in your search.

Chuck Stagliano

Zaki,

You might take a look at Cincinnati for a healthy return on investment. Obviously, in a city the size of Cincinnati there are many different neighborhoods and price/value situations. But as a rule, you can find excellent value in fairly low priced neighborhoods where the rents are strong. If you decide to take a look, please contact me. I'm a wholesaler there and can discuss value. 

Regarding your question about landlord friendly laws, you'll have to look at that yourself. Suffice it to say, there are many happy and successful landlords in Cincinnati. You might consider that as a guide. There is good REIA there, Take a look at their website. You may find helpful info there as well.

Good luck,

Chuck Stagliano

Missy is major player in Cincinnati Real Estate. Well known in the community.

Please contact me if you have a property in these zip codes.

Chris,

You are buying the property today, so pro forma means nothing. Asking price means nothing. Find out what the average cap rate is in this neighborhood for similar property sales. Not listings, or pendings. Sales. Then use that cap rate as the key to determine the as is value today, based on today's true NOI. That's your absolute max price, but that will be colored by your risk tolerance and your realistic evaluation of your ability to orchestrate a turn around. You have to structure the risk away as much as possible. Once you close, the clock will be ticking on your cash burn, so know those numbers cold, and always assume that you made a 10 % mistake. Have a plan, the personnel and the capital to begin the turnaround immediately. If using private capital, have the sources and uses carefully planned. Do not overpay, regardless of what the agent tells you. As an adviser of mine says, be cynical at best and paranoid at worst.