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i'm working with an investor who's making her first move into the cleveland market and she's got several questions about exactly how the relationship with houghton wise is going to be joanna from boston this is your show let's dive in this is your show this is the show where i work for you directly taking your needs i'm going through the mls and i'm trying to find the best possible deal for you guys put down 25 that's the perfect way to buy this that's why real estate investing is the greatest industry in the world [Music] hey folks welcome to another episode of the mls search analysis show here on holton wise tv as always i'm your host james wise and uh folks this is the show you know on hold wise tv what we do what we do here is we give you guys education on the real estate industry our goal is to provide you guys transparent education not just that fluff okay we want to give you guys a real look at what you can expect and then we do real deals with you we are a real real estate brokerage we are a real property management company we have a real insurance company we have real title companies okay this is what we do in this show this is the show where we actually do it one on one my client today uh her name is joanna she's from boston and she's got a hundred g's to spend okay now joanna what you've said to me is you are looking uh for a very low risk investment you don't want to deal with rough tough tenants messy tenants right we have the tenants from hell's show here and uh anybody who hasn't seen that in the show notes below i'll put a link to that google tennis from hell holton wise uh we got videos they're rough okay they're rough they're tough real estate investing is a rough tough industry especially when you get into low-income properties and again our number one goal is to provide you all with transparency so we don't hold anything back on that show some of our most popular shows uh are on the tenants from hell show so check that out and joanna she's done some real estate investing and she knows she doesn't want to deal with that right so she wants to deal with low risk stuff so i have found you a very low risk rental property joanna that i'm going to get into but before i get into that you had given me a list of questions uh highlighting your concerns or questions you had with exactly how it's going to be working with us and i i just wanted to roll through your list first so we can get on the same page okay so the first thing you said to me since i'm not living in cleveland i would like to have a general understanding of what the good zip codes are meaning those uh who will not get vandalized the moment you turn around are safe to walk have acceptable schools uh things of that nature okay great question and as a matter of fact i've built a tool that helps investors with a lot of those questions all right if you go to holtonwize.com you click the tools and resources tab you go right here the ultimate guide to grading cleveland neighborhoods this is exactly what you want joanna this is a comprehensive guide i have made where i've graded every neighborhood in the cleveland area on an a to f scale i even did a color-coded map right so dark green we got our a neighborhoods that's where the wealthy people live right you know that's where your four five six seven eight hundred thousand dollar houses are they're gonna be in the dark green neighborhoods then we got light green which is b yellow which is c then we got red d and f right so the more risk the prices get lower but the risk gets higher the more risk that's red right that's your dnf so what it did is i went through and i put all the stuff in there for you guys this is going to give you all those answers median income i also included the tax rate which took care of another one of your questions you said uh your third question to me what's with the taxes there they seem to be twice as more than anywhere else blah blah blah blah so the tax rate right there it's all in here right so i put the tax rate uh like garfield heights for instance garfield heights is one of the highest tax places in the country 4.13 so if you have a property valued at a hundred thousand dollars and it's in garfield heights your taxes every year are gonna be more than four thousand dollars however if you have the same property and it's in brook park as an example it's only gonna be 2.31 so your taxes would be twenty three hundred right so same property hundred thousand dollar property in garfield heights you're looking at four g's a year place like brook park you're looking at uh 2300 a year so all those are in there for every single municipality everything you guys are interested in cleveland itself is 2.79 right so all that info is in there so your level of risk uh etc with what you have told me joanna you appear to be an investor who's going to want to be in a b-class neighborhood the property i looked up for you is a b-class property so that's going to take care of that we'll get into that shortly now another question you had is you want to know about the pos i've actually made a video specifically about the pos so i want you to go ahead and pause this video right now in the show notes there's a video that explains the pos process some municipalities have them some do not so check that out uh another question you had is is it safe or advisable for you to take your four-year-old to cleveland for vacation you know you're looking at uh safety issues so for that question i would go back to the ultimate guide like you don't want to necessarily be walking around with a four-year-old uh at midnight on a saturday night in a d or f-class neighborhood i would say that's you know that's probably dangerous do people do it yes of course but if you're asking me like you know where is the crime at you know if you're trying to avoid areas with high crime your d neighborhoods your f neighborhoods they're gonna have high crime now likewise if you're in like a fancy old suburb which is an a-class neighborhood you don't even uh a lot of the people there they don't feel the need to lock their doors that type of thing so you know for information on the level of crime and all that jazz i would just ask you to refer back to the ultimate guide right the greater cleveland area is a huge place right you know certain neighborhoods certain cities they're going to be night and day compared to each other right it's not all going to be similar right so that answer will definitely vary based upon the level of neighborhood you're in and uh last question before we get into your property well two more questions actually uh you had asked me does it cost anything to have me be the buyer's agent or does that get covered by the commission once the property sells the majority of the funds to have us act as your buyer's agent are covered by the commission on the sale the way we do this program right the mls search analysis show you guys know you go to the property search for sale tab you click a package right joanna you got the 10 property package we will analyze give you a video analysis on 10 properties okay you've paid for that we're going to do that then after you get our information it's up to you you could take that information and go directly to the listing agent or you can have us represent you as your buyer's agent if the property that you decide to move forward with if you want us to represent you as your buyer's agent and the properties listed on the mls we will work off of the commission you do not have to pay us anything additional except for every time we write a contract with anybody there's a 295 flat fee 295 dollar flat fee brokerage charge which is going to be all you'd have to pay if the property is listed on the mls we will take that 295 as well as the commission at the listing agent is paying and that will be all the money that goes to us for the sale so it's almost free 295 dollars for us to handle the transaction for you on your behalf if for instance you sent us a property that is a for sale by owner property uh someone would need to pay us three percent if you'd like us in the deal whether that is you or whether that is the seller that is up to you guys so if the properties listed on the mls you don't need to worry about anything it's just once the you know at closing with your settlement when you're paying your title fees and all that jazz you'll pay 295 dollars to us and then the rest of our payment will be paid by the listing agent uh you know things are always different too sometimes they give us three percent sometimes it's a flat fee uh the properties are available in the mls uh so you know whatever these other brokerages are offering it's already been you know explained to us and sometimes it's really good sometimes the payments you know they're not very high but we're okay with that we we know what we're getting into that's also part of the reason why you know we actually sell the shows in the first place so we're covered uh from a payment standpoint our services are basically covered when they're on the mls when they're not though uh if it's a for sale by owner situation uh we would need to get a three percent payment so in that situation would probably be you paying us okay that covers that and then the last question you had for me uh was essentially your questions on property management and things of that nature so what i want you to do there okay just go up here to the uh faq we got really good facts on holton lies okay we have facts for everybody for you know people that are just regular you know uh mom and pops uh just living out in the cleveland area they want to sell their property they became accidental landlords we have facts for them we have effects for our tenants and we effects for investors like you guys so we'll click on that and the very first thing we have because again folks i can't stress this enough to you transparency is our number one thing our full property management agreement that's the very first thing on our arfak it's available for you you could download that it's a pdf it will go over every single penny that we charge you you know just off the rip it's essentially 10 is the pm fee one month's rent is the leasing fee uh evictions maintenance all of that of course would be extra all of the pricing for that is in there so you can go ahead and read that and then while you're in the fact you just want to cruise down through everything else we got we start you out at the buying process you know we take you through leasing we take you through property management repairs all the way to closing your account we have everything on there for you guys because at home wise we do it all in-house right we're going to give you the education then we're going to help you buy the property acting as your buyer's agent then we'll onboard your property into our property management we will fix up the property doesn't matter what you need to do if you just need to paint it if we need to replace the roof replace the driveway if we gotta tear the house down we can do all that you're gonna have all that done for you under one roof at holton wise then we'll advertise it we'll get you new tenants if those tenants become a problem we'll evict those tenants and we'll start the process over and when you're eventually ready to exit the cleveland market we will sell all of your properties for you on the other popular show we have here the investment properties for sale show so how all of those things work out the cost for all of those things everything we have we've given you both a written answer and video answers for the majority of those processes so everything is out there it's all up front guys so definitely check out that fact you know what we're big on can't stress enough it's transparency right we can't control what is going to happen right when you own these properties right we can never stop all risks right it's property management there's going to be problems there's going to be issues sometimes tenants don't pay bad stuff is going to happen that's part of this business we can't necessarily control that we can't eliminate that but we will tell you what we will do to mitigate those risks to reduce the frequency of those risks and we will tell you how we will react in every situation and what we're gonna charge you for that reaction that's what we do man it's all about transparency we try to give it out to you guys up front i don't want you guys starting to pay us a little bit of money we start working together and then like this thing just hits you like the the blindfold comes off and there's all these processes you weren't aware of no we pushed that all out for you up front it's all on the fact every penny i'm going to charge you it's out there so go ahead and read my property management agreement if you think the prices are too high and you want them to be lower you can go to hell because they're not going to go any lower so don't try to negotiate with me because those prices are set in stone we're happy with those prices we believe the value we provide for those prices is exactly where it needs to be so we're just gonna show you our hand y'all that's what we do this is what we do this is what we charge for if you'd like to move forward great if not that's okay there's a lot of other property management options out there and of course watching hold wise tv is free so you can continue to learn so joanna uh those were great questions and again you're doing 10 properties with me uh 10 10 videos so if uh the responses to those questions uh and you reading that fact if those elicit more questions when we go to do your next show please let me know and you just give me a bullet point list like you did here and i will go through them for you in the show okay so uh great questions keep them coming i want you to have a full understanding of what working with us is going to be like so with all of that said joanna let's get into this property and why based upon your questions i chose this property for you 918 south green south euclid four four one two one battle market a long time 131 days listed at 92 000 now this is already a tenant occupied property as far as the photos we don't have a lot okay it's just going to be some exterior stuff now that is not necessarily a cause of concern okay let me read you what the listing agent said investment opportunity 10 occupied property on a lease through october 31st 2020 paying 1080 plus utilities this 1463 square foot house it's on a 952 square foot lot and features three bedrooms and two baths this home has been beautifully taken care of a wonderful investment property now in addition like the the showing notes they said they're not doing any buyer showings tenants a little nervous about covid that makes sense don't think that it's necessarily a red flag that they haven't given us the interior pictures i don't think they're hiding anything what you guys gotta understand is dealing with tenants bothering tenants going inside the tenant's homes at any point is an issue it's a problem that's why we sell properties the way we do here on holton wise tv we don't even do buyer showings on occupied properties how we actually show the properties is on the investment properties for sales so check that show out we go in there one time film a video tour don't waste any time right that's the most efficient way to do it which is why we are the number one seller of rentals in cleveland trying to sell these occupy properties in a traditional standpoint where people are like hey i think i want to buy that rental and then you gotta have the seller talk to the or the buyer would talk to the buyer's agent who talked to the seller's agent who'd talked to the tenant who would then tell you when they could go ahead and let them in and then you got to go through the whole days chain again and then somebody changed their mind then it goes through the whole it's a nightmare it doesn't work it's stupid and that's why we don't do it and that's why it's not a red flag to me that they're not allowing showings and we don't have pictures but it's a red flag to other people a lot of other people they're not used to this investment game and they think that's the only way you could buy properties they automatically think there must be a red flag so they are passing up on this property which is why it's still been on the market for 131 days it's already kind of occupied and we're going to get an inspection we're going to do our due diligence you're not just buying it blind right we're gonna put a contract out get the seller to accept it and it's gonna be contingent on a home inspection that you're gonna pay for you're gonna pay a third-party home inspector to do that that way the seller knows you're serious they know that you're willing to pay a few hundred bucks to send an inspector in there you're committed to the deal they only got to bother their tenant one time which is why i think i can get you a discount i do not want you to pay 92 000. i only want you to pay 80 000 for this all those things i mentioned right i think that's scaring other buyers away i think they're afraid of that i think they're thinking that these big red flags but they don't understand this business how i do they don't deal with these rentals how i do so because of that that's why they're on the market 131 days and that's why i want you to be able to pick it up for 80 000 and what does that even get us well the tenant as i said they're already paying 10 80 3 bed two bath and they said they're doing the utilities it doesn't include the water sewer but it does include the gas and electric right so 1080 comes in 12 296 is what comes in for the year of that 1080 a month i anticipate you spending 665 on average to operate the property and that's going to include that water sewer because they said they're paying utilities but in cleveland that typically means they're paying gas and electric you as the property owner need to pay water sewer more information on why is in that fact i was talking about earlier and that's accounting for repairs and maintenance vacancy and down payment capex all that jazz we're accounting for all that should be 665 is what goes out should be 415 on average comes in a month almost 5 000 a year in profit you go ahead and you just finance this right so probably in pretty good condition of course we're going to verify that through your home inspection but you're going to need to put down twenty thousand dollars you you keep a lot of your hundred thousand dollars in your pocket go ahead and keep eighty thousand dollars in your pocket for the next deal on the deal after just put down 20k we'll get you a mortgage for the other 60k anybody who needs loans send us an email sales at holtonwize.com we gotta list of lenders nationwide okay nationwide lenders guys 30-year loans 25 down low interest fixed interest best game in town okay so they're going to give you that 60 000 loan that's going to take 252 off of your net profit leaving you with an average of 163 a month which is a 9.8 percent return on your money and i haven't even really brought uh up the neighborhood as much this neighborhood south euclid it's gonna fit right into what i think you want joanna which is a low risk investment a place that's not necessarily dangerous not necessarily high income in fancy like those a class neighborhoods because there ain't no rental market in four or five hundred thousand dollar houses in cleveland right you go into these really nice high-end a-class neighborhoods it's like 99 owner-occupied stuff there's no rental business there guys i mean for those kind of prices and those kind of numbers i'm sure you could find something in your backyard in boston to invest in right you come to the cleveland market for the lower income stuff property is under 100k so this is going to be in one of the nicer neighborhoods where the prices fall in line to that you don't have to worry about like gunshots or getting robbed or walking your dog and your four-year-old daughter or something of that nature right so you should have some pretty low risk tenants low sets of problems they should be exactly what you're looking for which is why i picked this one for you so joanna let us know if you'd like us to write the offer we will again i think we could take the fact that kovid's out there people are nervous about showings tenants ain't letting anybody in there other people are a little concerned that they don't know what's going on with the property i think a lot of people are making a lot of issues uh and you know scaring themselves about this property thinking they're hiding someone i don't think that's the case i just think that's natural tenant behavior especially during a pandemic so we're gonna use that to our advantage though and try to pick it up for 80 grand which would be a hell of a deal so if you want us to move forward write this offer for you we can just reply to this uh private email everybody else again i told you earlier in the show go to uh property search for sale tab on holtonwize.com if you'd like to work with us in the same way joanna is doing that's it for today's show y'all as always i'm james wise with holton wise and this is real estate investing made [Music] easy this is your show this is the show where i work for you directly taking your needs i'm going through the mls and i'm trying to find the best possible deal for you guys put down 25 that's the perfect way to buy this that's why real estate investing's greatest industry in the world [Music] discount property warehouse founded by real estate visionary robert field author of the short-term retirement program is a complete turnkey solution for acquiring cash flowing investment properties in memphis tennessee our turnkey properties include a third-party home inspection new 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