My first home in Cleveland from the beginner's diary :-) After meeting with several entrepreneurs…

My first home in Cleveland from the beginner's diary :-) After meeting with several entrepreneurs…

My first home in Cleveland from the starting investor's diary

After meeting with a number of entrepreneurs and reading lots, I decided to take a step and buy a private home in the United States.

At that point I had already figured out more or less how to analyze remotely, property, neighborhood and such investment, later I realize that I was about a yellow belt level and had a lot more to learn. But it was good enough to get started.

I happen to already have an LLC in Florida and a close US bank account from the time I was considering investing in Florida. It's best to open an LLC in the state of the property so I registered the LLC in Ohio as well and we moved on. The whole process of opening an LLC account is something quite technical and I haven't had a big story for me.

The property was located and I went over a business plan. Expected revenues, refurbishment costs, expected expenses and additional closing costs, maintenance expenses, repairs and error intervals, etc. I compared a few sites and checked if the data was consistent.

In addition, I looked at a Comps - comparable sale document that shows deals of identical properties recently sold near the property. This is a very important parameter for the general analysis in order to compare price levels in the region.

I checked the property and the area and crossed out the information with about 15 different sites, saw that the numbers were working out and pretty much understood who lives in the area and who will be the type of tenants.

The data and numbers worked out, good sign, come on! And I signed an intention to buy the property.

At this point, I could already get an inspector on my behalf to check the status of the property, and I chose to use the local area people. The management company also looked at the property closely for me, the house was in good condition, the roof and the heating system were replaced 12 years ago so that we will be used for years to come and in general and I needed a little overhaul.

We started contracts with the Teitel company that checked that the property was free of debt and foreclosure liens.

Teitel issued signature transfer contracts and also signed various statements and treaties such as smoke detectors and the like. We did a Teitel insurance and issued a HUD1 document that collected all the costs including various property taxes and included the purchase expenses. I made a payment to the Teitel bank account, the property was registered in the local county within a few days and checked myself in the county that the property was registered to my name.

I was contacted by a local insurance agent, I linked it to the management company and we did property insurance.

The policy for investors includes a case where the house burns down, the insurance company will pay up to a little more than the cost of the house or the damage, and in addition will pay me monthly rent for a year.

Back to the renovation .. We replaced carpets, dyed, scrubbed the tubs (it was important to me), and cleaned gutters, prepared the rental property, Rent Ready

I signed a contract with the management company regarding the responsibilities of the management fees and ongoing work more formally, got access to the property management system for regular monitoring and transferred my bank account details for the transfer of funds.

The property was rented out on the market by the management company, and within three weeks we found tenants who had signed a two-year contract. The tenants transferred a cash deposit for a month's rent to security and the property began to work.

Proud to have done it, learned a lot and created something that would work for me for years to come.


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