It seems the supply of great multifamily investment opportunities in Cleveland has dried up a bit over the last several months. I guess ell the smart investors have found Cleveland and are snapping up the great buys as they hit the market. I have found some great properties recently, but they have been over priced. It seems the sellers think they are in Houston or somewhere sexy like that and can demand a 8 or 9 CAP in their pricing. Good luck to them if the get it!

In the wake of decreasing supply, and after discussions with some local investors I know who are very much into the single family market, we will be looking for JV partners to fund some distressed SFH purchases in the Cleveland area. These will all be in good areas with great comps, so no 'D class neighborhoods. I figured with the awesome team I have in place in Cleveland, and with it being listed as a great market in several different reports I've seen lately, it's time to diversify the investment strategy a bit. We will buy, rehab, rent out, and sell at wholesale rates to other investors as cash-flowing properties.

I really like this model as it will allow my Canadian investors to get into the market without the need for US entities or any of the other cross-border issues they are wary of with purchasing properties on their own. We have the infrastructure in place to deal with all of the tax issues, and cross border finances and accounting. The JV partner provides a mortgage on the property that covers purchase and rehab, and is registered against title. After the property is sold, the title company repays the JV partner their initial investment, and we split the profits with the JV partner.

We're currently evaluating several home for purchase, and if you'd like to get in on this opportunity, drop me a line and we'll talk.




 


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