All Forum Posts by: Jonathan Greene

You definitely need an agent on the ground in Cleveland who not only can run comps, but can explain the neighborhoods if you don't plan on going and doing the market research yourself. You have to be able to trust the comps because an agent can send you whatever comps he or she wants. So if they want you to think a price is right, they can send you higher comps and so forth. So build a relationship with a Cleveland investor-friendly agent, there are some on BP, and make sure you tell them you want to see ALL of the comps within .5 miles to 1 miles with similar BR, BA, house structure. Do not trust comp research on sites that have MLS streams because they are not always accurate on solds. Many of the sites hold active data well for listed properties, but once sold they need to be verified by the agent (on Zillow) to become a sold comp. The only reliable data is on the MLS and via a trusted agent.

I've used Upwork successfully multiple times. Just search for real estate investor VA and several will come up with verified past jobs. If you have an investment CRM like Podio add that to the search terms. You also have to be very specific if you want calling to be done. Many are not comfortable calling, but are exceptional data inputters so be clear and always Skype with them first. You can find good VAs via Upwork for $5-$8/hour and their time spent is verified and trackable.

You aren't thinking correctly about what the largest return is. The largest return on a home owned for 30+ years by the same owner isn't always the highest sale price. To get the highest sale price, you will have to put IN a lot of money, which you just stated you don't have. So if you use HML at 12% with no experience and 2 points and it takes you 3-6 months to renovate and due to lack of experience, it doesn't get you what you want or you decide to do something crazy and rebuild, you are just causing more problems for yourself. If you've never flipped a house, you don't want to start, without the money and experience to do it, on this type of house. Instead of doing all that, you could sell to not just investors, but people looking to move for their family, but also do work. There is no shortcut to market price and you are really solving your own problem by not doing it instead of incurring HM debt to do something you have never done.

You will need reserve funds to buy anything so in addition to the 1-3k, do you have reserves for repairs and fixes once you buy something? Too many new investors are trying to rush into ownership, but if you don't have 3.5% minimum downpayment for an FHA plus 10k in the bank for all that will come up, closing costs, inspections, you really need to keep saving and then keep saving some more to make sure you don't bite off more than you can chew.

If your DIY friends are not licensed, remember you will need to get a certificate of occupancy when any renovation is done and all permits and renovations would need to be approved before reselling. Your best option to start will usually be house hacking so you get some income coming in, but you also get 2x the potential for repairs with a two-family.

@Angelo Mart and @Mike D. great points. Especially with REO, if you use listing agent as your agent, you have a much better chance of winning the bid, but it's not a great move for newer investors because they don't understand the process as much. Even though it's dual agency, we all know we are on our own with REO and foreclosure properties. The OP was about not having a buyer's agent and eliminating the commission. When we use the listing agent, they get the whole commission and yes, that's sometimes how you close an REO deal.

What is the partnership agreement on financing and profits and how much do you have to spend to get into the market? $1,000 passive income can be had, but it's dependent on what you can spend in most markets. What management of the property do you plan to do or are you going to pay for PM, which will cut into your cash flow? If you only care about monthly income, SF or MF doesn't really matter as it's all market-specific and supply and demand based as to what you can get. If you don't have any real estate experience, parking money for a specific monthly income will be hard to come by unless you are looking for turnkey with reliable background and data.

Northern NJ is VERY tough for new investors. Most of them end up overpaying and regretting it because we also have very high taxes. You can still find properties on the MLS, you just have to know what you are looking for and be able to assess repair costs. It also depends what you are trying to do and your qualification price point if you have a mortgage. If you aren't paying cash, which most first-timers are not, you are not getting a foreclosure or most REO properties in this area. There are WAY too many cash buyers and the banks know better than to waste their time on mortgages when that's why they are in the spot they are in. Northern NJ is inundated with experienced investors, but also new investors who have pushed up the price points. If you tell me what you want to invest it (SFH, MFH, will you house hack) and what your price point is, I can guide you on areas that might have what will work for you. As a brand new investor, with a mortgage as payment, on-market is close to your only option. Those of us who operate off-market funnels will put renovated properties on the market, but they won't be a good deal for you and our wholesale type deals will be cash only.

In re: meetups, look up Brick x Brick on Meetup. It meets in Montclair and is a no-sell zone.

You are taking on the existing leases and tenancies as stated in their original lease agreements so make sure you read them cover to cover to make sure you know how good the lease was in terms of getting them out in May, if you wish, and in regard to the security deposit. Have you met the tenants? When I am under contract on a property with tenants I want to meet them as soon as possible, if they weren't home at showings, just to assess if they are clean as a tenant and whether they want to stay or leave. Don't leave any of this for the last minute. When you have tenancies that will last until May you want to see not just a written rent roll, but confirmation of the monthly payments from each tenant so you don't end up taking on a deadbeat tenant.

Why do you want to acquire a property with no money down and incur the debt and costs? If you want it for no money down as a strategy that's one thing, but do you have money saved for the costs of owning a property if something breaks right when you buy it and for inspections and closing costs and title? There are ways to buy property with no money down, but they are best used as a strategy when you have some leverage and savings.

@Anthony Rosa Good point, I should have clarified. I don't buy into the same Starbucks or Whole Foods principle in a cityscape because I think they run numbers based on foot traffic in cities and may not consider what you said. But, they are still usually correct with the data pointing them there. Personally, I use the Starbucks monitor for towns with predominantly traditional single-family house neighborhoods and driving as the main mode of transportation.