All Forum Posts by: Ed W.

@Tom Camarda

Creative options can't turn this sow's ear into a silk purse. Paying $110k (purchase price + rehab) for something you believe to have an ARV of only $95k with rental income that will barely pay (or, perhaps, slightly exceed) only the mortgage payment (that is, leave you no money for the other expenses) is a very large accident waiting to happen (actually, there will be no waiting for the accident - as soon as you close you'll be a cooked goose). Run away from this as fast as you can.

Paying full price (or close to it) only works with:

(1) guaranteed and substantial appreciation (exceedingly rare almost to the point of impossible and certainly not the case here) 

(2) exceedingly good payment terms (very low payments such that very good and very consistent POSITIVE monthly cash flow can be generated from rents).  Taking subject to a very low mortgage balance (or having a free and clear property) and giving the seller a note with terms very favorable to you for the balance would be okay in this scenario.  If the outlook for rents is stable to increasing over the long term of the note (long term and very low or no interest is almost always needed to get the monthly payments low enough) this strategy might then work.  Even then, however, you have very little in the way of exit strategies to get out of the deal if life throws you a curve and you need to exit quickly.  You might get the seller/mortgagee to take a discount for early payment on his note but that is not a sure thing particularly if he learns that you need to sell quickly.

I've done these deals but they come along only once in a blue moon.  

@Connor Chatfield

If you want to connect with other investors, there is a FREE landlording meeting this Thursday, April 21st, at Tommy's Pizza on Dublin-Granville that features education (a Q&A session for general real estate investing and landlording as well as a featured speaker) and networking and has a good mix of newbies and experienced investors. It starts at 6:00 PM (though you can arrive later) and ends around 9:00 PM or later. Attendance is usually 40-50 (last month was over 50).This month the scheduled speaker is an attorney who will be discussing landlording issues related to service and therapy animals.

You can also go online and find a website for COREE which meets, I believe, the first Tuesday every month.

@Todd Moore

If you want to connect with other investors, there is a FREE landlording meeting this Thursday, April 21st, at Tommy's Pizza on Dublin-Granville that features education (a Q&A session for general real estate investing and landlording as well as a featured speaker) and networking and has a good mix of newbies and experienced investors. It starts at 6:00 PM (though you can arrive later) and ends around 9:00 PM or later. Attendance is usually 40-50 (last month was over 50). This month the scheduled speaker is an attorney who will be discussing landlording issues related to service and therapy animals.

You can also go online and find a website for COREE which meets, I believe, the first Tuesday every month.

@Randy Born

If you want to connect with other investors, there is a FREE landlording meeting this coming Thursday, April 21st, at Tommy's Pizza on Dublin-Granville that features education (a Q&A session for general real estate and landlording as well as a featured speaker) and networking and has a good mix of newbies and experienced investors. It starts at 6:00 PM (though you can arrive later) and ends around 9:00 PM or later. Attendance is usually 40-50 (last month was over 50).This month the scheduled speaker is an attorney who will be discussing landlording issues related to service and therapy animals.

You can also go online and find a website for COREE which meets, I believe, the first Tuesday every month.

@Ryan Mainwaring The group does not have a website.  It charges nothing for the meetings which are provided as a free service.  There are no hidden fees and there are no sales pitches to sell you courses or seminars.  It's has a core of (for the most part) very serious, long-time investors and landlords.  Guest speakers have included the head of Columbus Code Enforcement, the Franklin County Auditor, pest control experts (nationally recognized, not just any local guy looking to drum up business), attorneys, etc.  Speakers for April and May will be an attorney and a Columbus Fire Chief. My best advice is to attend a meeting and decide if it's your cup of tea.  The price is right.  PM me if you want more information.

@Anna Milligan

Hi Anna - I've been an active investor and landlord in Columbus for about 25 years.  It's a good place to do business.  Welcome.

Your construction credentials will prove to be valuable to you in a lot of ways but, of course, there are many other areas of real estate investment that you will have to master over the years.

You haven't given us two important numbers: (1) the age of your oldest child and (2) how much time you and your husband collectively have each week to devote to real estate.  Once we know those it becomes a little easier to give better advice.  That said here are some thoughts that may be helpful:

1. Like construction, real estate investing can have a lot of "moving parts".  In real estate they involve many different disciplines - finance, law, the trades, human relationships, etc.  Education, slowly but surely, and assistance are the keys to not making any of the very expensive mistakes that you want to avoid.  BP, of course, is an excellent resource.  In addition, there are 2 Columbus area real estate groups, (a) COREE which has a general purpose and meets the first Tuesday of the month (see their website for details) and has good education and networking and (b) a landlording group that also has good education and networking and - importantly - will be meeting TOMORROW NIGHT MARCH 24th at Tommy's Pizza on Dublin-Granville and will be having one of the most important educational discussions in our business - how to buy "right" (what to pay and what to buy). If you pay too much or buy the wrong property you're behind the 8 ball from the start. PM me if you want additional details.  Perhaps, you and/or your husband can squeeze this important meeting into your schedule.  It starts at 6 for general Q&A and the buying "right" part starts at 6:45.  It's a FREE, well-attended meeting that will also have good networking opportunities including some BP members.

2. In addition to buy and hold, you may want to consider wholesaling as a way to get periodic chunks of cash to help as financial reserves for your rentals and/or to help with college expenses.  These will properties that typically you don't want (for various reasons) in your rental portfolio but that can still be productive for you as cash generators.

@Jared Myers

I was a member of Columbus REIA from about 1991 until it ceased operating about a year ago. The landlording group I mentioned above was affiliated with the REIA until last year and since REIA is no longer active it is an independent group. The email list is over 200 and a typical meeting has 35 - 55 in attendance with a very good mix of very experienced and new investors (landlords, flippers, wholesalers) as well as professionals such attorneys, agents, managers, tradespeople, etc. Even though it's primarily a landlord group, the speakers often deal with topics that good wholesalers and flippers need to be well versed in and, of course, landlords and flippers are good candidates to buy from wholesalers so the networking opportunities are excellent for them as well.

@Ahmed Hassanain

There is a Central Ohio landlord group you should check out this month because the main discussion will be important to not only landlords, but wholesalers, flippers, and newbies in general. The topic will “Buying Right” and will touch on determining value and what types of properties appeal to tenants and owner-occupants.This group has monthly meetings and is meeting this Thursday, March 24th. The meetings are well-attended, FREE and held at Tommy's Pizza on Dublin-Granville between Sawmill and Riverside. From 6:00-6:45 there will be a Q&A session primarily geared to newbies, then the discussion mentioned above and after that there will be networking. PERTINENT TO THIS THREAD, UNTIL 6:45 AND THEN AGAIN DURING THE NETWORKING SESSION YOU'LL HAVE A CHANCE TO DISCUSS AND ASK QUESTIONS ABOUT MARKETING.

@Mikael Winkler

There is a Central Ohio landlord group you should check out this month because the main discussion will be important to not only landlords, but wholesalers, and newbies in general. The topic will “Buying Right” and will touch on determining value and what types of properties appeal to tenants and owner-occupants.This group has monthly meetings and is meeting this Thursday, March 24th. The meetings are well-attended, FREE and held at Tommy's Pizza on Dublin-Granville between Sawmill and Riverside. From 6:00-6:45 there will be a Q&A session primarily geared to newbies, then the discussion mentioned above and after that there will be networking. PERTINENT TO THIS THREAD, THERE WILL BE NUMEROUS EXPERIENCED INVESTORS THERE (AND, SOMETIMES, AN INSURANCE AGENT OR TWO) WHO CAN ANSWER SOME OF YOUR QUESTIONS AND/OR PROVIDE YOU WITH THE NAMES OF AGENTS WORTH TALKING TO.

@Jared Myers

There is a Central Ohio landlord group you should check out this month because the main discussion will be important to not only landlords, but wholesalers, and newbies in general. The topic will “Buying Right” and will touch on determining value and what types of properties appeal to tenants and owner-occupants.This group has monthly meetings and is meeting this Thursday, March 24th. The meetings are well-attended, FREE and held at Tommy's Pizza on Dublin-Granville between Sawmill and Riverside. From 6:00-6:45 there will be a Q&A session primarily geared to newbies, then the discussion mentioned above and after that there will be networking.