All Forum Posts by: Matt Stewart

@Kaylee Fox  First of all, welcome!  

That's kind of a broad request.  I think you'll get a much better response if you tell us a little about yourself, your background, and what specifically you're interested in doing in real estate.  Columbus has a lot of opportunity, but it's also a very challenging market right now.  I don't know of any successful investors who are sitting around Columbus with extra time on their hands.  Find a way to save someone time and you'll have a much better chance of finding what you're looking for.

@Nancy Leatham  I just won a bid on auction.com.  It will be the 6th property I've purchased through them.  Once you win the bid they'll contact you with information.  You'll need to be ready to wire the deposit right away, and they may request proof of funds.  Then depending on the type of auction they could be ready to close in a couple weeks or it could be a couple months if it's a sheriff's sale.  You'll have the option to purchase title insurance.  And they'll assign you a title company to work with.  Closing is done entirely through email, at least in Ohio.  I didn't have to have anything notarized.  Sometimes they are able to provide you with a lockbox code after closing so you can get access.  Otherwise gaining access or dealing with tenants or occupants is entirely your responsibility.  Feel free to reach out if you have questions.

@Christian Toles II  I'm always looking for my next deal.  Please send me details.

@Megan Blythe  Great info from Brandon and he's spot on for the most part.  But I do believe there's a sweet spot between the two areas he's described in the Franklinton area and that's where there is still opportunity.  Properties in this sweet spot are renting for $1500 per month and selling for $200k+.  It's important to tap into as many resources as you can when researching an area.  There's a lot of info you can access from the comfort of your office, but you really won't know what's going on in an area until you drive it as Hai mentioned.  Or better yet, walk it.

All of that being said I wouldn't recommend Franklinton to you for the reasons I mentioned previously and also your price point.  You may find some opportunities just adjacent to some of the hot areas.  I'd check out Driving Park or Hungarian Village.  I think it's going to be tough to get into the suburbs for $100k, but maybe look at zip code 43232.  Certain areas of Hilltop on the west side are improving, but I've always stayed away from it myself.  

@Megan Blythe  You're not wrong about the Franklinton area.  I've been involved in several properties there in the last year.  Demand is high and values are increasing.  That being said I would not recommend it for a first time deal, especially if you're investing from out of town.  Unless of course you have the right team in place.  

As recently as 8 years ago you could buy a property in this area for under $10k. Most of these properties were rented out and cashed flowed very well. But they were not well maintained. Most of these houses were built over a hundred years ago and they are in rough shape. There are properties in the right parts of Franklinton now selling for well over $200k, but those properties require major rehab to get to that max ARV. It can be a timely, extensive, and expensive process to get the value you want, for a flip or a rental. Be cautious.

@Megan Blythe  Columbus is a very competitive market right now.  What kind of property are you looking for?  Fix and flip, buy & hold, multi-unit?

@Geoffrey Chen That area is a solid C neighborhood. You'll find ARV's in the range of $90-140k. I've flipped several in that area over the years. It gets worse if you go west of Hamilton Rd and you'll encounter the flood zone south of Chatterton, east of Noe Bixby. I'd say it's about 40% rentals in most of that area.

I work with a few different JV partners. They put up the money for purchase, rehab, and soft costs and I manage the project and rehab locally. For the most part it's a 50/50 split, but the agreement can vary per deal. There are plenty of variables to consider when deciding on a split, including exit strategy and time involved. Most importantly think about who will responsible for what and make sure that is clarified in writing in your agreement. There is a fair amount of trust involved on both sides, but documentation makes it easier.

The work you're describing is not skilled labor, anyone can do it given the time.  The real question is what value do you put on your time?  If you have more free time than extra money then do it yourself.  And vice versa.  

There's no wrong way.  It just depends on your current situation.