All Forum Posts by: David Terbeek

@Lindsay Arko  You are describing a common problem when markets heat up.  There are a lot of multiple offers and things go over asking.  Have you considered attending the sheriff sale to try to get properties before they hit the market.  There is inherent risk as you don't always know what you are buying (no inspections available) but the prices can be very favorable.  Of course, Cuyahoga county sheriff sale has started to heat up so we will see how long the bargains last there too.

I know they have to have self closer and I think they need to be fire rated but I couldn't tell you the absolute specifics.  I will be looking forward to reading the responses.

Welcome to the BP family @Howard Lawton.  Please let us know how we can help, there are lots of good resources available.

Congrats on your second purchase in the Cleveland market.  I would echo @Matt Motil a local PM typically has a good lease, I know we do.  You can, of course, also Google for a lease but you have to be careful that they do not have any provisions that violate Ohio's laws.

Lakewood, Shaker and now Parma already have rental inspections.  Cleveland has never had any interior inspections which is why it is getting so much attention now.

@Jim Cran  It looks like there is something not right with your MySmartMove.com report or the formatting when you placed it in BP.  App #1 owes $21,200 in revolving debt  when they have a $19,851 credit limit.  They would seem to be over their credit limit and it also says $12,928 being past due.  That shouldn't give them good credit.  I am guessing that the Resident Score of 675 isn't really equivalent to a FICO score of 675 which would be decent (not great) credit.  @Larry P. is right, there is a big risk when credit is not good.

A good co-signer should be able to show very good credit and excess income that could be used to pay the rent should things not go well.  For example, a parent(s) that has been accustomed to paying them them for the last 22 years and has the means to do so.

Cleveland seems to want the prices of real estate to be even lower.  Anyone have referrals for affordable Lead Abatement contractors?

@Gwen Fyfe  Yes, you may have multiple contractors bid and use the lowest for the POS estimates.  The only requirement is the contractor to be registered in the city in which they are providing the estimate.  You do not necessarily need to use the contractor that provided the bid.  Garfield Hts just wants you to sign an affidavit that you will complete the repairs without actually holding any money.

@Gwen Fyfe  Sure.  Each city differs slightly but here is the gist.  The inspector says you have violations 1-25, or whatever.  You have to get a contractor to estimate (Cleveland Hts and S Euclid give you the amounts) the repairs.  At closing you pay $25,000 for the property PLUS you put the money for the repairs into escrow.  So if the estimate to repair was $10,000, you would need $35,000 to come to the closing table.  Some cities want you to put 150% of the repairs (15k in this example for Shaker Heights) and some are under 100% (Euclid at 50% or 5,000 in this example) or just signature (Garfield Heights for a limited time).  Once you prove that the repairs are done, ie you paid someone to do them or you bought materials and did them, you can get your money released from escrow.

Now to Bedford.  They were sued in federal court over this process from someone because it is a violation of their constitutional rights.  Consequently, they have temporarily stopped the process.  HOWEVER, the word on the street is that they have become even more difficult (if that is possible) on their rental inspections should you decide to later rent the property as you plan.

I know several local investors that started out their careers by buying, renovating then selling their personal residences every 12-24 months for their first 3,4-5 deals before they really started to get into real estate.  The biggest issue they had was the spouse grumbling about the living conditions in each of the new houses.  Sweat equity is incredibly powerful.  

Two things to consider:  1) Make sure you can get that financing or you end up dead in the water.  2)  Most of the inner ring suburbs have a Point of Sale that requires an escrow hold.  The $20-30,000 house might take $25-40,000 to close.  Then you have to pay for the work before they will refund the escrow to you.  I can give you more information if you specify which suburbs, and/or contact the building department.