All Forum Posts by: Bob Collett

As suggested, ask your insurance company, and require renter's insurance. Foremost lists specific breeds that are excluded. Also check with the neighbors... if the neighbors have a problem with the breed, then you will have a problem. This based on real life experience... police calls... complaints to building department... etc., etc.

Good luck.

My question was not "how much do you want to make", or "how much are you willing to pay the wholesaler"... I wanted to know what the wholesaler expects to make on a $25,000 acquisition, based upon actual experience of the wholesaler.

Thanks for taking a stab at it in any case.

Thanks

I am curious... what is the typical markup on a wholesale deal. For the sake of a meaningful response; assume that you put a property under contract for $25000. What would you expect to sell it for? (Typical realistic expectation)

To qualify your response, let us know how many wholesale deals you have done in the two years.

For further insight, you can give a selling price range as well as your typical expectation for that same $25000 acquisition.

I have no idea if a wholesaler expects to make $1000 on a typical deal, or $20,000... or whatever the market will bear. 

If the answer is whatever the market will bear.... there is still a typical expectation based upon your track record.

Thanks.

Absolutely not true about ethnic eats... especially if you have any interest in Eeastern European, or south of the border... and don't forget, West side market is on the west side.there are a dozen Ukrainian markets on State Road alone. All of the Poles in Slavic Village that could do so, have moved west. Those that remain have put up bars on their doors and windows.

A few Irish pubs, and plenty of Asian eateries on the west... as well as fun bakeries and meat stores for sausage.

Like I said, one is not better or worse, just a matter of familiarity and preference.

Patsy, like James, I don't want to say west is better than east.... just different.

South Euclid has both POS and a minimum of an exterior inspection for rental inspections. Need a permit to rent which includes the name of the tenant, need a permit for a vacancy, contractors need to be licensed and registered with the city to work in the city. The inspectors are fairly reasonable.

I am a property manager with properties under management in Euclid, South Euclid, Cleveland Heights, Shaker Heights, Maple Heights, Garfield Heights, Lakewood, Parma, and the west side of Cleveland; so I can speak with a good deal of experience.

I grew up on the west side in the West Park - Puritas area, so I know it like the back of my hand. I tend to agree with those that say east and west does not mix very well in Cleveland... except in sports. I frequently meet a Clevelander when travelling around the country. I can ask just one question and have a pretty good idea of who and what they are... "what high school did you go to?" 

Its difficult to figure. The east side has the museums and the culture and the curved boulevard's and the Shaker transit... and the wealthy... and the gross poverty in the slums.  The west side has the traditional ethnic working class neighborhoods with no wealthy neighborhoods and fewer slums. The roads are laid out in a rigid grid. It makes east siders crazy. Of course many of these generalities have broken down over the last few decades.

From a property management perspective, you are definitely going to have more problems on the east side where most communities require rental permits, vacancy permits, and inspections. Collecting rents is more of a challenge on the east side, unless you get into the ultra high property value suburbs. Property damage and vandalism is more prevalent, crime is higher, and many people who live there want to move out. They have seen their property values plummet and feel they cannot afford to move. Maple Heights for example has as many as 70% rental properties. It also has many vacant properties... just drive through these neighborhoods in late spring and take note of all of the front lawns that have not been cut.

I have heard realtors say they will never again take a listing in Euclid no matter how much you pay them. The city can be that difficult.

Many of the communities on the east side seem like they are trying to rebuild their communities on the backs of real estate investors. Cash flows as a percentage of property acquisition costs can be much greater on the east side, but there tends to be a lot of deferred maintenance expense. The city halls run a cash grab demanding that investors maintain their properties to a higher standard. They often require contractors to be registered in that specific city in order to do any work... of course big fees to get registered. Some of these east side communities use 3rd party companies to do rental inspections. If they don't find any problems, they don't get to come back and charge for a re-inspection.

Good luck, and no matter where you invest, be sure to pay close attention to deferred maintenance costs, and also make sure you property calculate your monthly reserve fund requirements.  This is not as easy as it sounds... and very few investors take this into consideration. (example, what is the monthly reserve for a $4000 roof that is 10 years old and has an expected life of 10 more years?) A property reserve study would do this calculation for each and every capital improvement.

@Jordan Wright . I do not work as a buyers agent in the east side neighborhoods where you are doing your hunting. But, Let me know exactly what kind of property you are looking for, and where, and how you are funding it; and whether or not you are looking for a rental, or a flip; and the condition you are looking for; and I will try to refer you to an agent who can help.

Bob Collett

@Daniel Harnsberger . As in Ohio, providing property management services in Virginia requires a real estate license. I pay real estate agents $250 for a property management referral, plus some other incentives such as giving them right of first refusal if an when it comes time to sell the property.

You did not state whether or not you are a licensed real estate agent in Virginia. If you are not, the realtor would be ill advised to refer clients to you; and you would of course violating license law by conducting real estate type services like renting properties, without a license.

If you are a licensed real estate agent, give me a call, and I would be happy to discuss my success in getting referrals from other real estate agents.

Good luck.