Welcome to Cleveland real estate investor. On this podcast, you'll hear about every aspect of the real estate investment business. You will talk to your rockstar investors about their businesses, how they built them, where they came from, and where they're going. Who am I? I'm Joe Lieber and I've made millions of dollars from the real estate investment business over the last 20 years. If you're ready to hear the good and bad from a guy who's learned this business from the school of hard knocks and get educated by some bad ass entrepreneurs, then put your helmet on, strap on your chin strap. Let's ride.
(00:54): Yo, what's going on guys. Gals, thank you for tuning in. Got a cool episode for you today and talk about something. See how serious y'all are. So I guess what I'm trying to say. So it's a new year. I'm sure you're out there doing some marketing, trying to find some wholesale deals to sell to investors. And maybe you want something to, to rehab for yourself, or maybe you're looking for a rental property. Well, I've got a good, good deal today and we'll tell you all about it. So this house can do all those things. It's a flipper. You could keep it as a buy and hold because you're going to buy it cheap. You could wholesale this to the right person, but I'm not going to make it easy for you. Okay? So here's the scoop. I got this house it's on West 130 ninth street.
(01:50): Call me and I'll disclose the actual physical address to you. But here's the deal. I have had a tenant in this house. I've owned this house since 2006, and I've had a tenant in this house since 2011. They've been there 10 years paying seven 50 a month in rent. And I am ready to sell this home. It needs work. I don't want to go through rehab in this thing with them in there. They do not want to move and they pay. And they're great people. They're a little older. They're probably mid fifties, mid sixties, somewhere in there and they don't bother me. I think I put a hot water tank in the house two years ago, and that was the only thing they asked for. And probably since 2011, but I know the house needs work. I know the roof is going to need to be replaced.
(02:46): The windows are old. I'm sure the furnace is old. I'm sure it needs updated. Kitchen, updated bath, fresh paint, maybe some carpet or sand, the hardwood floors. It's a three bedroom, one bath from what I remember, but it's in a great location, really nice area over on 130 ninth off periods. I mean, it's, it's good, but I'm going to make us a little tricky for you. See, they don't want me to sell the home. They can't buy it. They tried to procure finance and they're not able to. And I can't go run a bunch of people through this house either. Cause it's gonna get them all rattled up. They're probably not going to be very cooperative. I don't have interior pics. I could probably get them. But at this point I don't. That's why I'm going to give someone a really, really good deal. So I don't have to deal with all this stuff.
(03:48): And if you want, you can buy this house, just keep him in there. You don't have to do anything. Let them keep paying you until they decide to move. Which truthfully, they probably are not going to move. There'll be carried out of there horizontally, if you know what I mean, that's probably the real deal with this. So the comps, this house fixed up looking like a million bucks. I think it's a one 10 property and the way their real estate Margaret's going on, it's probably gonna be a one 2125 property here in a minute. But as of the recording of this show, I'm saying it's a one 10 house solid one 10. Maybe you'll surprise me. I've been wrong. Some of you cats get so much money for these houses. It blows my mind. You go in there and start knocking walls down to these huge open kitchens, stainless appliances and subway tile backsplashes and undermount sinks.
(04:37): And I'm like, dude. And you're blowing them out at 140 GS. And I'm like, you're amazing. And you know, if you're that, rehabber good for you. My crew can't do that. I know my boys limitations and they that's not for them. They're more of a, you know, vinyl floor, home Depot prefab countertop, cut. It slept a little from Micah thing on the side in a way we go, right? But there could be more is what I'm saying. If you want to really bang out a rehab could be more valuable. I'm saying you're going to do, you know, like a home Depot, nice rehab. That's a one 10 property. So there's options, right? So there's that you go in there. Let me tell you this. And then we can run numbers. I'm going to sell it for 65. K. It's a great number. If you're a realtor and you got a buyer, add whatever the hell you really want to the top of that.
(05:32): If you want to make three grand, then do it for 68. You want to make five grand brand contract to me for 70. I'll pay you five. But that's my number. I'm telling us a very, very fair price. Look around. You will see, but you got to make it easy on me. There's a lot of these buyers, a lot of your buyers buy at auctions all the time. Downtown auction. You can't get on the houses. So same thing here, right? The house is functional. It's there. There's a kitchen. There's bath. There's a real house called try passed it. But all right, let's talk about numbers. All right, so you're gonna buy it for 65. K it's worth one 10, couple options. Let's talk about option one. Just keeping it as is. They're not bothering anybody. So what do you care if it has a new kitchen or bath in it doesn't matter.
(06:15): They like it. So leave them alone and just take your seven 50 a month and forget about it. You actually might be able to raise it a little bit, but if you do try to increase the rent, you're probably opening yourself up to them saying, Hey, well, if you're going to use the rent, you know, I want this and this, I wouldn't do that. Just take your seven 50 a month. That's a good ROI. And 65 GS and be done with this that's option one there's option to take it. I think it needs 20, 20 GS roof, windows, kitchen, bath. Yeah, twenties fair. He can get all that done for 20. You know, I can get the subway tile under my granite, you know, all that. You're not gonna get all that stuff, but you'll get a basic, nice home Depot rehab with a new roof for 20 GS.
(06:59): So you'd be in for 85 worth a buck, 10, pretty good, got some equity hard to come by these days. I like that option as well. But in order to do that, you gotta get them out. So you can go with a little of a dance to get them out because they're not going to just, they're probably not going to just go easy. Right? I've had conversation with them and they just want to be there. So you're going to have your challenges where there's options C and this is a very good option too, because it will remove you from operations and liability by the thing, cash, and then turn around and owner finance it to them. Owner, finance it to them. If I were you, I would do a 30 year mortgage because we know those are death sentences. And you'll be in the thing for 15 years.
(07:51): And the principal moves like nothing is crazy how little it moves. So really it's like an interest only loan. Basically, in my opinion, a 30 year mortgage is an interest only loan because you don't start hitting principal. What are 15 years? I'm at just the reality and they're out of it, right? You don't have to worry about any of the lead based paint issues. You don't have to worry about them calling you. The furnace is down or backed up sewer lines. You only have to have a property manager. You don't need a property manager. All you need is a servicing company that collect your mortgage payment. And that's an idea and they want to buy the home. So you might be able to even get a little cash Sola from them. And you're not going to get 10 grand, but you might get three, 4,000 bucks.
(08:32): Plus another text return season's coming up here may be able to grab that and play bank. I love the paper game. I love it so much because there's no operations. I don't do leasing agents for the paper game. I don't need a disposition team. I don't need contractors. I don't need project managers. I don't need bookkeeper. I don't mean anything. So I like the paper game and this could be a good play for some of you cats I've talked to, you won't need anything. The only thing you'll need at some point, if they default will be an attorney to go get your asset back, which will take you six months and about four GS, highly unlikely. They've been there, you know, over 10 years and the husband's handy. So they probably will fix the house up a little bit. Once that's like theirs or make deals with them, even haven't fixed the house up for you.
(09:21): But if you do that, do like CapEx things, right? Don't be like, Hey, I'll pay for material. You put new kitchen in bad idea. Be like, Hey, you put a new roof on, I'll pay for the material and then it can't get messed up again. Right? Hey, I'll buy windows at costs. If you put them in, I've done stuff like that. And they'll do it to the hell. They might even do it for free. If you're willing to like get the windows, it's they own the house. So to speak, right? You can put with them, there's all kinds of things you could do to like increase the value or, or whatever. And that way, if you do those things with them, you can buy it from me for 65. And tell me one 95. And you know, you're going to put a roof on it, but windows and you can do a few things.
(10:01): There's some opportunity here. If you guys are looking for a deal there's opportunity or host Dale, it like 75 is a very fair wholesale price, especially in this market. So there's no reason why you can't get 70 or 75 for it. Make yourself a little scratch. If you've got a buyer for this thing. But once again, it goes back to this. You can't make this hard on me. I can't go run a bunch of buyers over there. Getting these people all upset. It's a drive by kind of see it. Hey, it is what it is. It's a great house in a great neighborhood. You just got to kind of take the word for it. I buy sight unseen all the time. Even still to this day, I've been burned very little by insight. And the scene far outweighs the opportunity over getting burned for me.
(10:43): I used to buy a lot at the auction when it was good buy a lot of properties down there. It didn't start getting bad until about really it was over by 2018. It was really when it was over, but it has had its spurts, right? It was good in the nineties, it got bad in the two thousands. Got really good after the mortgage crisis. And then it got bad again and good. And now it's not good. And it's online now. So everybody sitting out in California, one of my house in Cleveland, they're overpaying for stuff. So I'm not an auction guy anymore. But my point is, is I bought from the auction all the time, sight unseen. So I just decided to make it easy. If I'm going to give the thing away, it's gotta be easy for me. So there's three options of what you can do with this house, depending on what you want to do.
(11:29): You got 65, Jesus. You just want to lay out there and make a little piece co you know, the finance don't call me at these finance deals, not for this house, get an appraiser in there. And then trying to get this thing, finance, it's probably going to be a dirty wreck. And this isn't for a finance guy. If you're a cash player, that's who this is for. If you don't have cash partner with a money guy, partner with somebody, you know, I have some to bring the money. You bring all the operations because there's going to be operations here. Someone's got to deal with them and let's just stay there. Then it doesn't require anything. I mean, they will pay you. They will pay their water and sewer bill. They won't bother you. All right. So that's all I want to say. I just want to make that offer out there too.
(12:12): You guys are scratching, scratching, and you're trying to find something you're sending mail. Well, this will be a good deal. It's a good deal. It's a good mail deal. So to speak, right? You would find deals like this. If you were sending mail or doing SEO or all the Google ad words or whatever, you'd probably pay more than that for it to be honest. But let's see. So give me a shout. You guys got my email, R E broker, the number's two, email@example.com. You've got my office line area code (440) 389-3883. Reach me there. You can text that number too. And I'm the sick. Thank you for tuning in, make it a great day.
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