Investors in Columbus, Ohio
There are many types of investment opportunities in Columbus, Ohio.
There are 15 universities and trade schools:
There are also many major employers.
All those universities and employers lead to the need for housing in both purchases and rentals.
My main three types of investment opportunity are:
1.) Buy rental properties and hold them.
You buy a property, complete whatever repairs need done, then rent the home out.
You can buy homes from $25k to $300k. Obviously if a house is cheaper it doesn't command as much rent. The higher the price, the higher quality tenants, and less hassle.
2.) Flipping houses.
Here is how I do my personal flips.
Find a house.
Assess repairs with contractor and get a bid.
Buy the house.
Pay for repairs. 3-6 month turnaround. You always want the closing to occur after the 6 month market to utilize FHA loans, or you need two appraisals.
Remarket the house.
Sell it. The goal is always to clear $30k or more.
Here's how I do "hands off" flips with investors.
Investor pays for the house. The house is in the investors name, not mine. Investor pays for repairs directly to contractor in 3 draws.
Re-list the home and sell it.
At closing the investor pays a regular commission of 6% (3% to me and 3% to the buyer's agent) for the sale and I get a $10k, or 10% of sales price bonus on the sale for managing the whole thing. That way, the investor has total control of the money throughout the process. I pick all the necessary repairs and finishes based on area, manage the contractor, and send photo updates.
So, on a $30k profit, I get $10k, the investor gets $20k.
3.) Owner financed mortgages.
You buy a house and complete any neccassary repairs.
We re-list the house and advertise the owner financing. A buyer likes the house and wants to utilize owner financing. The buyer fills out an application, I run his/her credit etc.. Must be over 600 and they must put a minium of 10% down(sometimes up to 25% down.) You decide on the loan length. 5-10 years. They pay monthly with 6-8% interest, depending on what we negotiate.
Now-why would a person pay this high interest, when rates are at 4%??? This is THE BEST way for self employed people to get a mortgage, without having to claim more income and pay more taxes for the required 2 years to get a mortgage. So, instead of them having to claim $75k a year for two years, and pay taxes on that to qualify, they can continue to claim their steady $40k after deductions, saving them literally around $15k in taxes. Additionally, you aren't a bank. They also save about $3,800 in origination and random mortgage fees. So, they are happy to pay 6% interest, and many times, happy to pay 8%, the legal maximum in Ohio.
You can do up to 3 owner financed sales in a year without a mortgage brokers license. Please remember, you usually get about $5k above market price for an owner financed deal too.
So what happens if they stop paying? You foreclose and re-sell the house. It's a win/win.