All Forum Posts by: Jeff Costa

@Julio Gonzalez People may not know the acronyms you are using if they don't swim in your lane. What does "CL" stand for in the Excel screen-cap above? I assume its related to the allocated depreciation for each time block of years?

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If you believe REI is a generational investment (ie: not just yours), you absolutely have to be thinking about this.

1 Vote

@Varun C.. Wells Fargo business checking accounts have Zelle enabled. I use it to collect rent.

1 Vote

@Drew Sygit I am 2 for 2 for PM's filling out the document end-to-end, and it generally takes 30m to add the one-line answers. That said, your approach of cherry-picking the important questions and covering them verbally works as well.

My (weak) validation is cross-referencing their answers with what they publish on their website. I'm looking for congruence of answers.

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@Jimmy Bell I put together a detailed list of questions you can ask any prospective property manager. Its in a Google doc you can find here and make a personal copy of.

1 Vote

You might want to change the title of your post to get more clicks, Seldon. The phrase: "...to local investors" does not mention where "local" actually is. Better title = more interest.

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Albuquerque, New Mexico

Quote from @Muhammad Amawi:

Hey Adriaan,

Timing the market is just another way of saying invest when you're ready. When you're running numbers for a property and they make sense with your goals and plans; it is now your time in the market.

This is some WISDOM right here. Preach!

1 Vote

Cleveland, Ohio

Same reply to this question for any investment vehicle: "Its not timing the market, but time IN the market that matters."

2 Votes

Cleveland, Ohio

@James Wise Definitely a state-by-state thing, right? Some states mandate a broker's license, others a Salesperson license, while others pursue Institute for Real Estate Management (IREM). Bottom line is to make sure they are certified.

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Quote from @James Wise:

Quote from @Daniel J West:

I am just starting out and my local market of Portland, Oregon is a bit out of my price range ($500k is the starting price). Well, $100k+ for a down payment is my current obstacle. I started looking at other markets and Dayton Ohio has caught my eye due to much more affordable real estate. I seem to find plenty of deals that are less than $200k asking price, so a down payment is well within my reach. I have also visited there a few times for work, so I could piggyback on that for travel expenses to check on the properties from time to time. Ultimately I will need to work with a property management company to take care of the normal property needs. I am mainly just wondering if I am being blinded by the lower prices or is there a lot of potential there? There seems to be a lot of older buildings that are nearly 100 years old and in need of renovations. I could see this as a good BRRRR market, but as a complete noob, I want to make sure there isn't something obvious I'm missing. Any input would be much appreciated.

Most folks from Portland looking at Ohio come a few hours north to Cleveland. Much more going on in Cleveland than Dayton, so it's typically a more popular destination for people in your situation. At any rate, whether it be Dayton or Cleveland, out of state investing can be a difficult game to win. If it goes well, it's awesome. If it goes south, it sucks hard. If you follow the punch list below, you'll probably have success with either Dayton or Cleveland.

Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area.
Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
Make sure your property manager is a licensed real estate brokerage.
Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

@James Wise I am curious about the "Make sure your property manager is a licensed real estate brokerage" statement. Are you really saying: "Make sure your property manager is vertically integrated? Or are you saying use your PM to source leads? Unclear on what you are saying here.

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All Forum Posts by: Jeff Costa

Jeff Costa has started 18 posts and replied 142 times.

Post: Example of Cost Segregation Study on Single Family Home in Miami

Post: Southwest Drought concerns

Post: Business Account for LLC which has zelle

Post: OWNING MULTI FAMILY INVESTMENTS OUT OF TOWN

Post: OWNING MULTI FAMILY INVESTMENTS OUT OF TOWN

Post: Offering Bird Dog services to local investors

Post: Timing the market. Wait or buy?

Post: Timing the market. Wait or buy?

Post: Is Dayton Ohio a decent market for multi-family?

Post: Is Dayton Ohio a decent market for multi-family?