All Forum Posts by: Adam Boonzaayer

Hey all,

I have a kind of unique situation. My wife and I (we're 25 and will have no debt) are about to close on the sale of our primary and make about 100k, by a stroke of luck, and some sweat equity. Our goal in the near future is to gain financial freedom through owning rental properties (yep, we read rich dad poor dad/cashflow quadrant). We have planned to start out with buying small multi's and moving up to larger complexes, but that's where things get tricky. I have not had a w-2 job in over 2 years, and my wife will be working part time (having kids soon) after we move. I would like to buy as many small multi's (probably under 5 units as there are more available) as we can get right off the bat (i'm talking 30+ units this year), but I'd like to be able to pull cash back out to keep buying. What I have planned so far is: buy with a personal cash/hard money mix, then cash out refi. But from what I can tell i will have a hard time with a cash out refi and no w-2. we both have great credit (over 750). Will a portfolio lender be the best bet for cash out? I just came from reading 

https://www.biggerpockets.com/forums/48/topics/460...

awesome content about avoiding the seasoning period, but my takeaway was that we won't qualify individually with no jobs..  I have been a student of real estate investing for the last 5 years and really hate working to make other people money (w-2). 

Who has a strategy to make our dreams come true?

Thanks a billion

Adam

@Jared W Smith

I agree that this is atypical, although after speaking with the city inspector he said they get a lot of letters from this guy. I imagine he is just willing to take the risk with the quantity of work he is doing, but at some point it will probably catch up with him.. I should have mentioned that I got a couple other quotes and they were at about 1000-1500. 

Update:

We ended up using a structural engineer to certify the entire project. I'm sure this doesn't typically happen but the guy walked through, said everything looked good and charged us $350 to write a letter to the inspector saying he certifies the concealed work. 

In addition to the bedroom/bathroom work, we also added a covered front porch without a permit that we planned to disclose on the sellers disclosure at the time of sale rather than getting permitted. However when the inspector showed up to complete the rough inspection for the beds/bath remodel (at which point I would present the letter from the engineer) he noticed the porch was new and decided to write us a violation on it.. The first engineer wouldn't answer any calls/emails so we had to find another guy who would certify, he was less easy going and made up do some foundation improvements before he would certify. Long story short(ish), I would caution anyone who is going to make any large non-permitted, structural improvements to a house they plan to sell. It took us 2 months and and nearly $2500 to get everything up to code and permitted.

As a homeowner you are allowed to do a lot, if not all of your home improvement project yourself (in Indianapolis you have to have an electrician pull electrical permits). As a "house hacker" it will be worth your while to just apply for the permits for big remodels rather than having to do it after the fact. Check your local code for things that actually do require a permit. 

I understand that things may be different in other parts of the country, this has just been my experience. The inspector was also an a-hole so that didn't help..

On a good note, we finally listed the house last week and have accepted an offer which will net us about 80k.

I hope this can help someone who is going through something similar, or deciding whether or not to get permits. 

Adam

Hey everybody,

I have come across a potential wholesale deal that I need some advice on, this would be my first wholesale btw. I've found a property that the owner has entirely let go, hasn't paid the mortgage in 10 years and taxes in probably about the same. It was sold at tax auction in Nov. of '17 although is still in the redemption period ($6600 to redeem). The owner said he has not been foreclosed on although there was still about 80k outstanding, however, per the county recorder the mortgage co has issued a "release of mortgage, mortgage only." I have not run a title search yet, and am wondering if this sounds like too much of a mess to get into?

Questions:

1. what happened to the outstanding amount of the mortgage? As far as i can tell it is now debt no longer secured by the property? In the case of a sale would the purchaser be in any way liable?

2. Could the $ for the redemption be paid at closing?

3. Chances are there are other liens against the property, will a title search bring up everything? Or what other due diligence should I be aware of?

The owner sounds very cooperative, and essentially said he would give the property away (potential red flag, I know). The property is essentially a tear down so I still need to run rehab/rebuild numbers to see if it even makes sense as an investment. 

By the way I found this property while riding my bike in my neighborhood and striking up a conversation with a guy who was trimming the very out of control trees in front of the property for the owner.. Peddling for dollars? I'm hoping so.

Any advice much appreciated.

Adam

@Matthew Paul

What type of engineer would that be? 

Thanks

Hey Everybody,

I am looking for recommendations for electricians and plumbers who would be willing to inspect/certify work that they did not complete. We completed a remodel in our home adding 3 bedrooms and a shower to a half bath.

I get this is probably a stretch but for the electrical work pretty much all of it can be easily traced through the attic the only thing that is concealed is the wire drop to the outlets and switches that were installed. The plumbing is concealed but I have pretty extensive pictures of the work as it was being done. 

Any recommendations?

Located in Indianapolis within the loop.

I recently stumbled across Alpine Capital Solutions, I haven't used them before but have seen some good reviews here on BP when I searched them. I believe they provide turn key rental props that they manage in house and I want to say a predicted 10% cash on cash return. Someone correct me if I'm wrong 

Hi @Daniel Dow

Why wait? There's no time like the present especially with our current economy, historically low interest rates right now that will most likely go up after the election!

Hello Bigger Pockets!

A quick introduction:

My name is Adam Boonzaayer and I just recently become a licensed Realtor in this great state of Indiana, I am working out of the Indy Metro North office of Keller Williams. I have been browsing the BP forums for a couple of years but have never contributed until now, I have also listened to almost all of the podcasts. I have completed one fix and flip (actually closing Nov 11) before I became an agent and will continue to invest while serving as a traditional agent.

I see myself as an investor before an agent; my mindset has been shaped by books such as: Rich Dad Poor Dad, The 10x Rule, The Book On Investing In Real Estate with Low and No Money Down, E-Myth, Think and Grow Rich, 4 Hour Workweek etc. etc.

My main goal is to bring distressed properties to rehabbers, MLS and, those that cannot be listed, as wholesale opportunites. I am also a registered bidder with HUD homestore. At the same time I am more than happy to list properties that have been completed.

Please contact me with any of your real estate needs, investing or otherwise! I look forward to working with you all and further improving our community!