All Forum Posts by: Ryan Evans

100% of occupied duplexes that I've either bought for myself or my clients, the sellers lie. Rents are off, leases are wrong, appliances are brought into question, deposits go missing, they stop paying, etc. 

Every single time. 

That said, it's not a dealbreaker, but you've got to be aggressive in due your diligence and don't' be afraid to push for what you need to not get screwed. I tell sellers they need to show me leases, rents, deposits, etc. and put it in writing. Otherwise, I ask for a price reduction or an escrow hold for the amount of several months lost rent, an eviction attorney, rehab, and my time, assuming they're lying. 

A lot of California investors have lost a lot of money in that neighborhood. 

Preach! 

I have these people contact me several times a week for guidance and most are not nearly prepared for doing out of state deals that aren't fully turnkey. I was one of them once and I decided to jump in the deep end anyway and get my hands dirty investing out of state in the midwest. Though, I'm a risk-taker and worked remotely so I could go back and forth to check in on things as needed. Not that it was a good use of time and money, but it allowed me to jump in. It's worked out so far, but it's been a grind and most don't have the stomach for it. You can certainly make some money buying in less expensive out of state markets, but you can lose it much faster. 

If you're simply trying to grow a portfolio then you don't really need to spend much if anything on the first three. There is so much good free software out there already so unless you're up in the league of needing something like Appfolio, you should be able to get by just fine. If you're systemizing a PM business or something then that might all differ. You could BRRRR a SFR or duplex with 30 and then go from there. If that's not fast enough then partnering up is probably your next best bet.

I'd say one of the biggest things is to know what you're looking for and why. You've got a deal under your belt so you're ahead of 90% of out of state investors in Cleveland, which is awesome. So moving forward if you're reaching out to agents, you should know your numbers, what kind of property you're looking for, and prove that you're ready to buy. If it's PM's or contractors, you should know what questions to ask and be ready to move quickly if you find what you're looking for. 

Every week I'm contacted by new investors who want to "pick my brain" because they don't know what they're looking for and are too lazy to do the work themselves. They're often looking at ten other markets and just want me to "bring them a deal." I don't have time for that and the deals go to the people who know what they want. I'm not saying you're one of them at all. It sounds like you're doing the right thing. But if you know what you want and ask the right questions, you'll be able to develop real relationships quickly by showing you're not like the rest of the time-wasters!  

FHA is a government-backed program so yeah it's legitimate. You're in an easy position. Just buy a duplex in your name and ask for some closing costs to be covered. Minimal out of pocket and your living expenses might go down depending on purchase price and whatever market you're in. If you get married your wife will own half anyway so don't overcomplicate it up front. Start talking to some FHA lenders and they'll walk you through what you can and cannot do given your situation. Until you do that it won't really become real.

Sounds like you should stay away from the drive-through window for a while haha. If you want to really drum up some hate, make a Christmas sweater with you as a hipster king James, one of the three "Wise" men, bearing an eviction notice to a guy named Jesus. 

I've been doing due dilligence on a property like this in an area where my other properties are. It's not something I'm familiar with, but I know enough about the area to have some level of confidence in it. Though there are a lot of these properties around town and it seems like the era of their popularity has largely passed. People just don't run a shop and live upstairs like they used to, so these buildings don't make as much sense in the modern age. I'm not saying they only make sense for those people, but the demand for small storefronts doesn't seem very stable in Cleveland based on nothing more than driving around it every day.  They certainly make sense on paper when occupied, but the demand for the apartments will be diminished somewhat based on the commercial property below. I managed leasing on a property like what you're describing and almost every tenant I showed the property to was concerned about what kind of business might move downstairs. All that said, if you're buying on a very few set of streets in the up and coming neighborhoods I don't see why it couldn't work. 

In terms of landlording to a bar, I wouldn't jump into a business relationship with one of the highest failure industries out there. Noise issues and high apartment turnover are the first things that come to mind. Though I have friends that live over a coffee shop in this kind of building and it's a different story entirely. 

I go to meetups here and there, but the most valuable one in my experience that is also one of the more well attended meetups in Cleveland happens during the day. They also have a quick 30-second pitch for everyone in the room. There are always plenty of newbies at any event, but I like going during the day because it brings in people that are actually invested in doing real estate. Not tire kickers. I can go to that event, find out who I need to talk to, and then go meet them. I don't get bogged down chatting with beginners who are just thinking about starting to invest. 

Sure, everyone has to start somewhere, but the people out there making things happen can more or less control their schedule and daytime isn't a problem. These are the people that go to events with specific connections in mind or something to offer and these are the people I want to be around. 

I've found that the later meetups turn into groups that churn through newbies every month and then the same service providers show up regularly, which is all well and good, but I've made those connections and stopped going. 

Also, I used to host multiple events a week at a high-end coworking space I consulted for. Those spaces often will comp the meeting areas if you bring in a good crowd and can get them some members. Real estate people are great candidates for coworking spaces. Not sure if there are any down there, but worth a look. 

Never host a meetup at a house. That's just weird. 

I've always thought that if I hosted a real estate meetup, I'd make attendees bring a few property deeds or mortgages so only actual investors get in haha. I'm tired of having my "brain picked" by newbies.  

Welcome to the site Eduardo. Being a firefighter is a great asset to investing. I buy multifamilies on the east side with my business partner/best friend who is a firefighter. I'm here, but he lives out of state and flies in regularly on his long breaks to help out.