US Why is Cleveland considered by many professionals to be the most preferred investment destination...

Discussion in 'Where to Buy' started by John Makrylos, 16th Feb, 2020.

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  1. John Makrylos

    John Makrylos Member

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    You can choose any region in the United States and worldwide. So why choose to invest in the Cleveland Ohio area anyway?

    First, when talking about the state of Ohio, it's important to understand why investing in real estate in the United States over other real estate investment opportunities abroad, and then differentiating between the different regions. There are various investment opportunities in cities such as Toledo, Cincinnati, Solon or Columbus. But we're focusing here on the Northeast Ohio area, the cities near the Cleveland metropolis.

    There are very good reasons to invest in real estate in Cleveland. Maybe you thought why bother investing in assets and managing them overseas instead of investing in Australia Or why in Cleveland and not anywhere else in the US?

    Cleveland is the second largest city in the state of Ohio. The city and the surrounding area are undergoing both population and processes that cause a rise in rent and property values.

    Realife was one of the first companies to recognize the potential of the Cleveland real estate market, in particular the small-scale international investor's desire for a high return on rental investment, but also the importance of long-term planning and the expectation of real estate prices.

    In Cleveland, too, in recent years there has been an increase in employment in the employment market - 22,500 new jobs in a variety of new companies located in the city.

    Cleveland Economic Key Information
    • $12 Billion investment and government development budget;
    • Urban Renewal Project along the LAKE ERIE River Line;
    • Consistent and higher employment growth than the national average;
    • NEO Ohio's largest export region - ranked as the 6th largest exporter among US states; and
    • 70% presence of Fortune 500 companies. Of these, 10 headquarters are located in Cleveland
    Cleveland Clinic - Leaders in the health industry worldwide
    • A fast-growing health industry in the United States
    • More than 60 Cleveland hospitals
    • Biomedical industry with more than 600 facilities. Every year, facilities are added.
    • The biomedical industry is a major exporter of products that adds value to the region
    • Cleveland Clinic - A leading global medical center of excellence.
    • University Hospital - A large medical center with environmental economic impact
    • Global Center for Health and Innovation - Center of Excellence
    Real Estate Market Key Inoformation

    • Cleveland metropolitan area is the largest in the US, adjacent to the river - closing in on real estate expansion
    • Opportunities to acquire properties in high-quality, stable population areas and also in the most lucrative price range
    • Ohio state rents tend to benefit property owners rather than tenants - for example, evacuating a fast property and legal environment where there are no protections for tenants like RENT CONTROL as can be found in real estate in Germany and even recently in New York.
    • High rent versus asset prices - high return and strong cash flow for investors
    • A study looked at what would happen if there was an economic crisis and found that Cleveland is more stable than almost all other areas of the United States!
    • CYCLE MARKETS research of Harvard University shows that statistically historical real estate prices come and go previous record, reflecting a potential capital gain of more than 30% of the investment areas where we are active

    The information provided is based on my experience and knowledge in the Cleveland market. As there are many explosive growth markets in the US, it may be hard to pinpoint which area is the best to invest your money in.

    I hope that with the information provided you are able to make a more informed decision.

    Gianni (John) Makrylos






     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Aint been to Cleveland but liked Toledo a bunch

    Eclectic place

    ta
    rolf
     
  3. datto

    datto Well-Known Member

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    Certainly give Cleveland a look if I ever get a chance.

    I might even pick up a 351 V8 while I'm there lol.
     
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  4. matt_j

    matt_j Well-Known Member

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    Hi John,

    If one was to invest in the US market, do you have any advice on how best to proceed? Through reading on here I have seen that some posters have been able to purchase many properties & make large CGs.
     
  5. John Makrylos

    John Makrylos Member

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    Hi Matt,

    There are certainly benefits for foreign investors looking into the US market. However there are some pre-cautionary measures I would advise.

    Firstly, network with people who are already doing what you want to do. From there you will find that all good investors that are in markets have an acquisitions team and operations team.

    You could build this team on your own, but without the knowledge and resources on who to approach and where too start. I would suggest looking for people already in markets.

    Build your team:

    If you decide to build your own team on your own terms you will need to start in an area that suits your objectives.... are you looking to buy and hold and cashflow? or are you looking for how to flip a property and make some "quick cash" (which is not so quick as there is always going to be obstacles during your major renovations).

    A starting point is to locate a good and trustworthy realtor in the area you are interested in. The realtor will have the local market knowledge and local contractors who they use for other clients.

    The realtor is your first and main point of contact as a foreign investor, however, not all realtors work with foreign investors as they know that foreign investors = hard work as they dont usually understand the local laws and procedures.

    I hope this helps and is a good starting point for you.

    Gianni (John) Makrylos
     
  6. John Makrylos

    John Makrylos Member

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    Cleveland is a great place to visit.

    People are nice and they have amazing buildings as many of the architects that worked in New York also did buildings in Cleveland.

    Close to the East Coast, West Coast, Canada and Florida.
     
  7. sash

    sash Well-Known Member

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    All my exes live in Texas. ;)
     
  8. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    Do you typically need to buy with cash John when purchasing in USA? I imagine it would be difficult to buy with credit from banks within AU.
     
  9. Jordan Sinclair

    Jordan Sinclair Well-Known Member

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    While cash is always best, AU banks may lend for your US investment. You will need to borrow against Aussie property or get unsecured lending.
     
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  10. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    I don't have much experience with credit since I have not purchased a house but I assume unsecured debt the interest rates would be pretty high and may make the investment business case less viable...
     
  11. Jordan Sinclair

    Jordan Sinclair Well-Known Member

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    The rates vary will vary. Some potential interest free options could be family and friends.

    To establish credit, some people will get utilities in their name. Equifax offer a free credit report, if you unsure of credit history.
     
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  12. Ariyahn2011

    Ariyahn2011 Well-Known Member

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    With something like this I would likely go in with friends/family to spread the risk. We almost purchased property after the GFC. The idea was quite foreign to us and for some reason emotionally we could not pull the trigger (mostly because it was in another country).
    I think globalisation has changed the game and everything is a bit easier and transparent. Purchasing a property in India is another story though (which I almost did under advice from my FIL).