Oceanpointe Investments owned property... hmmm
Hello,
Newer member to Bigger Pockets but fairly knowledgeable with residential real estate.
Question: I'm looking at duplex in Indianapolis, IN that's listed for $60,000. Condition looks okay from the pictures. Before wasting anytime my due diligence has me looking at the property records; I instantly see it's owned by Oceanpointe Investments Limited. They purchased the property for $110,000 in April 2017. How/why is this property listed so low? Should I completely avoid this deal?
I've been on the site for about a year (finally made an account) and read a lot of negative things about that company etc.
Thanks
Most Popular Reply
I'm not sure about this specific house, but we are listing an entire portfolio for an MI/OP client. He is taking over a $200k loss between his 7 buildings. None of them were completed, but he paid "full boat" at closing, like all MI/OP clients. He was going to sell half to fund the rehabs on the others, but recently got diagnosed with leukemia. Now he's pretty much giving away everything so his wife won't have to deal with it after he's gone. He invested about $500k overall and will be selling them for nearly half of what he's paid. That's not including the other money that he lost from city fines, penalties, and holding costs.
This MI/OP mess is very heartbreaking, but there will be some opportunities. It sucks that we've seen this coming for a year now and had many conversations about it on BP. We've had their clients defend this mess while they continued to drink the kool aid and argue with us in forums about how we didn't understand what was going on and how Clayton was going to take care of them. Now OP and Blue Sky are out of business and there are millions of dollars spent that will not be recouped.
Understand... OP purchased the cheapest deals they could find, so 80% of them are in pretty undesirable areas. Worse yet, some of them are in such poor condition that the best choice will be to bulldoze it but the area won't sustain the cost to rebuild.
As always, there will be opportunities from this inventory, but buyer beware and understand what you're buying. Always do your Due Diligence. I'm actually looking at a couple of homes from this mess for myself. They're not all bad, but you have to be selective and diligent.