All Forum Posts by: Victor Vella

Sometimes it’s not even lower sometimes it’s we’re out. It’s not like we do that on every deal or even half our deals. 

My point is more we just always try and engage in dialogue cuz if your not talking you can’t make a deal

No when we offer after re-penciling a deal we don’t change terms unless seller requests certain terms. I always try and be flexible with closing times sensitive to sellers needs. 10 days or 3 months whatever they need.

That wasn’t the case on this property. But on other properties we’ve offered been rejected. Lowered the offer b/c of a repencil and when our offer goes down its b/c we over looked something not b/c we just felt like it so we’re not coming back up.

The answer my not be logical but rather emotional, maybe a fear of loss? From our standpoint we re offer if we’re not seeing anything on the market that’s a better deal and we have properties that are wrapping up getting ready to be listed.

Though sometimes when people don’t take our offer I repencil and the next offer could be lower. We’ve gotten deals that way too.... and at the lower price

I know, right? The most hyper competitive market in NEO lol. Trying aggressively to get off market deals in any market. 

Those ones specifically were MLS... here's our last one we just picked up - 53%... just closed on this

https://m.youtube.com/watch?v=wzYZGj-eByQ

We’re not just in Lakewood, sold one in Beachwood in Nov of last year. 

I just happen to have a great team on the ground in Lakewood and I move fast and in that community I take thinner margins then I would I others. 

I’m usually at listings I’m interested in with same day offers with competitive offers/terms. People may bid me but my goal speed and decisive action. 

Interesting profile of investors we sure are interesting...I hope I’m not a vampire! 😂.... most of my showings are done in daylight 

You mention time investment (and knowledge) being the most valuable asset and I couldn’t agree more.

A true investor should appreciate the best return on time will likely lead to the most profitable outcomes.  That being said going back to vampires - a true investor should prioritize opportunity. The issue is once we commit in real estate - our time and capital is locked into that property for potentially a long time. So you better be sure you have the best opportunity in the current market while being prepared for the next opportunity that pops up.

You have to balance capital deployment with opportunity vs opportunity cost. Just another perspective on why vampires might look for Acq price/ARV of 55% or less 😁 I'm high demand communities.

We’ve done 6 in Lakewood in past year and 4/6 were at this threshold the others were decent discounts but rental ready on day 1. But the ability to move fast is hyper critical. IMO there are a lot of “investors” that over analyze. And over analysis paralysis never created any profit. ( though maybe protected it from a loss - however those are some of the best learning experiences)

I like my formula but always open to conversations and ways to evolve it. I’m not married to my ideas but to what works 😁

My formula is more philosophical 

Relationships with local market realtors. Speed. Cash. Ask. Ask again. Raise the bid. Lower the bid. Walk from deals. Ask again. 

Activity breeds activity.

Sounds like he’s a had a little success with a formula on paper and forgot this is still a people and relationship business 

KISS - if you gotta deal in a high demand CLE area let’s chat 

Hey Mark - I do a mix of I properties east and west, including Lakewood. Lakewood is extremely competitive on the acquisition side.

Out of curiousity do you wholesale properties or look at wholesale deals in CLE/Lakewood?

Hey Vic I just did a Reno on cook that contracted on day 1 with multiples. very familiar with Lakewood and have multiple rentals. SF and duplex.

Great street!!! Amazing location to live so accessible to anything you need.

Out of curiousity did you end up renting as is or fix it up?

We just did a SF on elmwood rented for 1500 - 3/1.... it was interesting took longer to rent then to sell our flips. Thought that was crazy. But it’s a weird time of year for renters in CLE

Curious how much activity at what price points if you don’t mind sharing we have a double we’re listing in a few months

I like the thought!!... I’m curious on feedback from the community.

Are you picking up any pre-foreclosures? I buy from wholesalers sometimes.

I used to go to the auction itself... there used to be 150 houses a week.... now I see like 20 in Cuyahoga County and the risk is huge

Looks to me like a housing shortage is coming down the pipe

Surjit I cannot help with the KC comparison however I grew up in CLE and lived/attended the university of dayton.

I can tell you both have pro's cons

The two thoughts I'd throw your way is 

Population Size: 

Montgomery County - 500K

Cuyahoga County - 1,200,000

Whats going in the city

Dayton -

Pro - Univerity of dayton growth, kinda between Columbus and Cinci, Cheap

Con - Loss of alot of big corporations, whats long term vision besides the university

Cleveland

Pro's - Well diveresed with anchor companies for jobs, pockets of hot markets, land locked to the north with lake erie

 - (ie of anchor companies: Progressive, Highland Software, Parker Hannifan, Swagelok, Nestle, etc

Con's - Rents arnt crazy high, going to fuel growth for future,

I know that doesnt help with Cap rate opportunity analysis but hopefully as far as holding values overall long term I would - and do choose Cleveland.  Not that I ever want to steer investors away from my home city but Columbus and Cinci have great markets as well.