All Forum Posts by: Bob Collett

@Sunny D.

Congratulations on your purchase.I currently have a property on W. 57 just a few blocks from Fulton. Great neighborhood. Sold two SFR properties there this past year.

Let me know if you ever want to discuss property management.

Brooklyn, or Old Brooklyn in Cleveland?

@Kevin Thomas - Kevin, by now you have heard enough of "stay focused on one market".  They are correct. Not only stay focused on one market, but also develop a narrow, well defined niche within that market. Some guys want to buy low rent, do flips, do wholesale, etc. etc.
For example, for my own investments with my son; we buy only distressed properties in great areas. I define a great area as a community that can boast one of the top 5 school systems in greater Cleveland. These areas always have the highest property values, and they are the most likely to support a high end rehab... granite, all new kitchen, hard wood floors, ceramic tile, etc. Thus, when we finish up and sell; we always set a price per square foot record for the neighborhood. We use the same colors, the same carpet, the same trim packages, the same granite, etc (with minor modifications of course).

I am not suggesting you, or anyone copy my business model. I am suggesting that you develop one that works for you, and then stick with it.

Let me know if you ever want to talk about property management in the Cleveland area. I am a licensed real estate agent, but my focus is property management outside of the war zones.

Good luck.

Owen... they may do it, but statute clearly and specifically prohibits it for anyone. I spent a lot of time looking for a loophole.

Perhaps they are not allowed to charge based upon the amount of reduction. Thanks for following up. I will take another look at it.

@Oren K. 

Good point about property taxes, but FYI... it is illegal in Cuyahoga County for anyone to file a complaint for another, to reduce property taxes for compensation based upon the outcome (contingency).

Likewise, the county is very specific about who can, and who cannot file a complaint to reduce property tax for another. This becomes an issue if there is a hearing. There will typically be a hearing if the amount of requested reduction is significant.

I do file property tax complaints for my clients, and usually get a reduction. However as you suggested, I have to be prepared to have an attorney or licensed broker show up in the event of a hearing.

@Patrick Britton ... I agree with your logic, but not your conclusion. Cleveland is lower risk, because the values are supported by the income, and because we do not have rapid appeciation. Even during the peak, when property was appreciating 8% annually nationwide, greater cleveland was only appreciating 2% annualy. During a recession, we do not have so far to fall.

If by risk, you mean exit strategy, then I would agree. SFR investers always want a deal, and investor buyers tend not want to pay for the prior investors rennovations.

The turnkey guys with a marketing machine get a good price, but regular buyer's will never pay their premium on SFR.

@Sri kand Getting a $50,000 to rent for $800 in Cleveland inner ring suburbs is the easy part. In fact none of the single family that I manage rent for less than $750

This clause is becoming more prevalent. Buyers use it as one more way to get out of a contract.

You are welcome. As a property manager, I work my way through a lot of contractors. Some are not so good and a pain in the neck, many are mediocre, and some are really great and a pleasure to work with.

It is wonderful when you can send a guy to a job and know he will do good work on a timely basis and at a fair price.

Curious... what kind of job?

Dave

I would be happy to learn from you what is "lacking" in your PM. I am a property manager here and get all of my clients either from referral or because of other PM not doing the job. Is your current PM  licensed? Contact me in private if you prefer.