Finding Opportunity in Comeback Markets

Job creation is up. Even better news … the jobs being created are blue-collar jobs, many in the reviving manufacturing industry.

This means more wages, more workers … and more folks who can pay rent.

In this episode of The Real Estate Guys™ show, we talk to an entrepreneur who has built a real estate business in an off-the-radar market.

The truth is, the hot markets you always hear about … San Francisco, New York, Los Angeles … don’t make sense for investors.

On the other hand, markets with not-so-great reputations might get you the best bang for your buck, depending on where they’re at in the market cycle.

Our conversation today delves into what makes a market make sense … and what it takes to make a profit in sensible markets.

Listen in … you’ll hear from:

  • Your reputable host, Robert Helms
  • His bad-reputation co-host, Russell Gray
  • Bryce Keesee, founder of Great Lakes Capital Solutions

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Riding the market waves

Let’s start with a quick real estate investing lesson.

Many people generalize the entire real estate investment category. They think real estate is overheated … so there’s no opportunity anywhere, for anyone.

That’s just plain wrong.

Real estate is NOT an asset class. It’s NOT a market. It’s an investment category with MANY different markets, each of which is in its own unique place in the market cycle.

But smart investors don’t look at averages. They take the time to do research, look for clues, kick the dirt, and meet people in individual markets.

When you’re looking for great markets, one excellent option is the comeback market.

Markets go through phases …

  1. Growth.
  2. Stabilization.
  3. Deterioration.
  4. Revitalization.

Catching a market as it hits step four is the key to riding an up-wave.

You don’t want to get in before things have started looking up … but you do want to get into markets that are turning upwards before the crowd.

Case study: Cleveland

Our guest Bryce Keesee got into real estate in southern Florida 15 years ago … but he has since switched to a market in the midst of MAJOR revitalization.

The market? His hometown … Cleveland, Ohio.

You might not initially think of Cleveland as a great investment market. That’s part of what makes it so great.

Bryce says the market offers many benefits … good price points for properties and rents, a steady flow of dependable tenants, stable worker incomes, and best of all … high cash flow.

Let’s get into what makes Cleveland so great.

First of all, a revitalized manufacturing industry only adds to the wide variety of blue-collar companies in the city.

Steel manufacturers join other major employers like Lincoln Electric, Progressive Insurance, several Amazon warehouses, and the renowned Cleveland Clinic, just to name a few.

This variety offers stability … and provides blue-collar jobs that keep rent prices steady.

These jobs are one reason Cleveland has a reputation for affordability.

Bryce is a fan of blue-collar workers because they tend to be long-term tenants. Many of these workers don’t plan to buy a home. Purchasing a property is “off the list” of goals for many people.

Dive into the details

We asked Bryce to give us the low-down on his typical rental property.

Bryce says properties are slightly different depending on location.

The east side of Cleveland has been abandoned for many years, although it’s starting to see growth now. So price points are a bit lower.

Bryce says single-family homes on the east side sell for $60-65,000. Monthly cashflow is $750 a month, on average … well above one percent.

The west side, on the other hand, has slightly higher price points and rents. Homes sell for 70-75,000, and rents are in the $900 range.

It takes 30-60 days from closing to repair and refurbish properties so they’re ready to rent.

The rehab process doesn’t follow a cookie-cutter template. Bryce and his partners have standardized the contractors and materials used, but each property gets an individual evaluation.

He wants well-functioning, desirable rentals that will save the company time and maintenance costs in the long-term.

That keeps tenants happy. Bryce also works to keep tenants happy by building relationships with tenants via his property management company.

“Our tenants love us,” Bryce says. A big reason is great communication from his property management team, with whom he has a 10-year relationship.

What about the general atmosphere of the Cleveland market? Ohio is extremely landlord-friendly, says Bryce. The law allows for a 3-day notice to vacate for non-paying tenants. The eviction process is only 10 days.

That doesn’t mean Bryce follows those timelines … he says his response is to establish a relationship with tenants and make sure the lines of communication are open. Yet another reason why property management is so important!

Investors interested in the Cleveland market should listen in to get access to a special report by Bryce that includes even more details!

Ohio Field Trip

Bryce really loves Ohio, and he thinks other investors will too.

Cleveland has great sports teams and the second-largest performing arts district outside of New York City.

But it’s also experiencing a revitalization that you can only really understand by kicking the dirt.

That’s why we recommend the Cleveland Field Trip.

You’ll get a chance to tour Cleveland with Bryce. But you’ll also learn about the investment model Bryce uses … an excellent education even if Cleveland isn’t right for you.

We live in an era of over-saturated markets. It’s hard to find markets that make sense. But some markets are just starting to get hot.

The very best way to get in on these markets is to learn from someone who has boots on the ground. Because remember, you’re not looking for a property, or even just a market … you’re looking for a TEAM.

And a field trip is the best way to meet the people … who know the market … and can help YOU build your own brilliant team.


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Cleveland Field Trip – Oct 18-20, 2019

Cleveland Field Trip

 

If you love CASH FLOW real estate, then you’ll love Cleveland!

 

Join this fun-filled weekend of real estate market exploration and education in Cleveland, Ohio.

 

October 18-20, 2019

 

Simply fill out the form below to get registration details

and save your seat TODAY! 

 

To learn more about a typical trip, read on…

Setting the Tone

The first thing you should know is that this event is educational.  So don’t worry about getting trapped in a room and getting hard closed to buy something (we call this the “timeshare experience”).  That’s not the way we roll.

However, we’re guessing you probably want to OWN more real estate.  After all, how much money can you make on a property you don’t own? So on this trip…

You’ll meet local market experts who provide many of the kinds of services you’ll need if you decide Cleveland is the market for you.  But nothing gets sold on the trip. If you like what you see and who you meet, then you can follow up on your own. No pressure from us or any of our guest speakers. That’s the why the trip isn’t free or subsidized.  You pay for education and that’s what you get.

Okay, with that out of the way, let’s talk about…

Trip Logistics

When you arrive in Cleveland on Friday, plan to arrive in time to get to the host hotel by 4:00 pm.

The host hotel serves as home base for the entire field trip.  So while you’re free to stay elsewhere, ask about a group deal…and it’s just a lot easier if you stay at the host hotel.

Friday night, expect a meet and greet, followed by a market overview presentation.

Afterwards,  head out to dinner with the hosts. Then back to the hotel for some shuteye.

Saturday morning get up and at ’em early. After breakfast, you’ll start in the classroom to lay the groundwork for a day of touring.

You’ll see a variety of neighborhoods and employment centers, and get an understanding for the overall health and vibrancy of the market.  You’ll learn how to look for the telltale signs of opportunity (or danger!) at the neighborhood level. This is important because you don’t buy a market, you buy a neighborhood.

Expect an emphasis on single and multi-family residential because that’s what most people are interested in, but you’ll also see commercial and retail areas.  If you have a particular interest, register early and be sure to let the hosts know what you’re most eager to learn about. The goal is to tailor each trip to the unique interests of each particular group.

The trips are small, so there’s ample time to ask questions and lots of interaction with the guest speakers, tour guides and your fellow field trippers. And look forward to capping the day off with a fun dinner and some tasty libations. Then back to the hotel for a nap.

Sunday morning is a lively interactive strategy session, some Q&A, and presentations from local experts.

After this power weekend, you’ll know more about Cleveland than most people who’ve lived there for years!

So Why Cleveland?

Cleveland is making a comeback.

Once a forgotten city with a struggling manufacturing sector, Cleveland is rebuilding a stronger, more diverse economy and workforce.

With a booming healthcare-technology corridor and revitalized neighborhoods and construction, Cleveland is poised to make a major move in the real estate market.

Here’s what’s changing in Ohio:

  • Diversified economy. Shuttering factories led to widespread unemployment. While some of those jobs have returned, it’s no longer the largest sector of the economy, and that diversity is promising for the future of the market.
  • The leader in healthcare. Cleveland Clinic is one of the best healthcare systems in the world and is the national leader in cardiology and heart surgery. Watch for continued growth in the biomedical industry.
  • An emerging tech hub. Greater access to capital, support for entrepreneurs, a low cost of living and a vibrant health tech corridor are just a few of the reasons why technology companies are choosing Cleveland as their home.
  • Eight Fortune 500 companies call it home. It’s not all surgery and computers here. Progressive Insurance, Goodyear Tire and Rubber, Sherwin Williams, and others provide jobs and revenue. And that influx of capital and people is revitalizing neighborhoods.
  • A newer, younger population. Millennials want to live closer to where they work and are coming back from the suburbs to the cities. Cleveland is the 8th fastest growing millennial population in the US, and they’re renting and purchasing homes.
  • Centralized location. According to Forbes, Ohio is within a day’s drive of 60 percent of the US GDP and 150 Fortune 500 businesses. It’s easy and cheap to get to many major cities.

Downtown Cleveland is changing rapidly. As the Health-Tech Corridor expands and innovates, Cleveland will continue to be a diamond in the rust belt.  We encourage you to take a deeper look at Cleveland.

 

October 18-20, 2019

 

Simply fill out the form below to get registration details and save your seat TODAY! >>

 


See what others are saying … 

“Really excellent event.  Well worth the time and money.” – Margo D.

“Great team to work with.” – Paul H.

“As a native Clevelander, the content and market analysis was spot on. It forced me to reconsider my strategy and expand my investment options.” – John G.

“Meeting the team was worth the trip.” – Brent S.


To get connected to the Cleveland market right away, we encourage you to contact Bryce and Staci of Great Lakes Capital Solutions.  They are practically family and strong supporters of The Real Estate Guys™ radio show.  They are happy to help you discover great opportunities in Cleveland!

Cleveland Market Report

Cleveland Market Report

 

With a booming healthcare-technology corridor and revitalized, rejuvenated neighborhoods and construction, Cleveland is poised to make a major move in the real estate market. Looking to get in just as it’s heating up? Take a deeper look at Cleveland, the diamond in the rust belt.

 

There’s a reason locals call it Believeland, Ohio.  Like many industrial cities in the US, markets have struggled to come back from tough losses over the past few decades.  But, once-abandoned and forgotten neighborhoods are getting new life, welcoming new industries, and starting fresh.

Cleveland Clinic and an innovative tech sector, along with a vibrant arts and music scene … Rock and Roll Hall of Fame anyone? … have made Cleveland one of the top cities for millennial renters AND an affordable stable market for investors.

Check out this report and discover why eight Fortune 500 Companies have chosen Cleveland as their home base and why now is the PERFECT time to consider an investment in this city.

Ready to learn more about the diamond in the rust belt?

Simply fill out the form below to receive your copy of the Cleveland Market Report.  Check out what could lie in store for you in Cleveland!