All Forum Posts by: Joe Villeneuve

 I read it on realestate.com and Ark7. Are these good sources?

Hi! I am starting to become involved in real estate investing and I am looking between two cities in Ohio to purchase my first property (hopefully a duplex). Through my research, it says that Cleveland and Toledo are both good options for real estate investing. Which one is better? Is there a city that's better than both of these in Ohio? I do need a property that is not very expensive, which is why I have been looking into Clevland due to their low selling prices and high appreciation rates. 

Look, I am rather regimented when it comes to hard money; that a HML should ONLY ever be used for short term transactional purposes.

That means knowing NOT hoping for the exit from HML.

Strategies that use hope, is how people get burned, bad. 

I see it somewhat regular of people who got into a "deal" with HML, to do a Brrr and now it's half done reno and there desperately trying to sell it as-is to bail them out.

And then I look like the bad guy bringing $0.65 to the dollar for an out for them, because there too blinded to realize the other options are more like $0.45 on the dollar. 

It happens, a fair bit. And most don't survive it. 

My opinion is follow DSCR standards. Because you gotta have multiple exit strategies.

If a "deal" only has 1 profitable exit strategy, it isn't a "deal", it's a bull-trap. 

 I’ve been to a number of meet ups over the years, but I’ve never been to a no pitch meet up. It could’ve just be my personality, but I always felt a little reluctant to be extra friendly if the other side did not reciprocate. The meet up I went to a number of times in San Antonio was more for the benefit of the owner of the meet up. It was the same for the meet up I went a number of times to in Austin as well. 

That is a very good point about future rent increases. I don't know what his market rate rent is for that property. Perhaps is a bit too high. Might it be smarter to offer a slightly lower monthly rent in exchange for a tenant who feels more content. Maybe who even knows they are getting a good deal. In the long-run this could reduce turn-over, maintence costs, vacancy and the need in the first place to have to offer $500 discount off the first month's rent. In my scenario I think it's possible the landlord may come ahead. 

There's many good replies. Another thought to add. Instead of $500 off the first months rent, have you considered lowering the rent by $40 dollars per month? Renters may prefer paying 40 less per month rather than the one time $500 discount. 

That last part is a great point. By calling this person a deal killer, people could interpret that as meaning they only kill deals. I meant it like you said, so I gave the five traits to back up their persona.

Cheerleaders are great to have, but I find that a lot of new investors only want that because it feels better. That's short-term. Long-term, you need a voice of reason. We all get hopped up over a deal. I want someone to point out all the flaws. It may help me negotiate or at least acknowledge the risk.