All Forum Posts by: Arpan Patel

Agreed with @Logan Allec and all of those points. Additionally, get a good job and and save money like a madman. The better reserves you have, the better off you will be.

In IN there isn't a huge need for attorneys for regular transactions. You will need them in the beginning to get the operating agreement and to create a structure that will work for you and your investment goals. You will also probably need them for eviction services. Other than that, you just need a really good realtor. For an operating agreement, about 1k is right. For evictions, probably something like 400 or so per eviction if they do a lot of them. The last thing is maybe to help you reduce your property taxes if they are a bit high. You will probably want different lawyers in each state as the laws can be quite considerably different. I think if they can handle residential, they can probably handle commercial as well. Contracts are different but the principles are similar.

No you will have to show proof of income or a track record that they can rely on. That is how Banks work but there are some hard money ish longer term lenders that are much more asset based but will charge more money.

@Kumar Paj: No we are basically only in the south suburbs of Chicago. We had looked at NWI but there was not enough inventory at high enough rents to make it work at scale there. Do you have a beat in the western suburbs? I grew up that way and we will eventually saturate the market out by us so we would be looking for a new farm area soon. What do you have in mind?

Hello, my name is Arpan Patel and we are fix and flip and BRRRR investors around Chicago, IL. We have extensive flipping experience (sold 6 homes last year with another one this year already sold and have another 5 on the books and a combined 19 years experience - 12 for my partner and 8 for me) and extensive turnkey and property management experience (my partner from 2000-2008 sold then managed 50 SFR units in the south side of Chicago). We are looking for investors who would like to partner on acquiring and holding rental properties in C+ to B+ areas. We have multiple short term lenders lined up along with and 5 intermediate term lenders (who can do cash our refinance loans with no seasoning) to can pull out all the initial investment in the deal while still retaining 30% equity and 1.2 or better debt coverage. We will find, fix, tenant and manage the tenant and asset along with the managing the financing process. We are looking for investors who have 50-60k, good credit to be our 50-50 partner for long term holds. This is for people who want to build a portfolio of rentals and cash flow by recycling capital. We are not looking for those who only eventually wants one or two units. Email or call me if you are interested. My contact information is on my profile.

You can do all the same things with a commercial loans but you will need to figure out different lenders. There should be no issues with company names on title and mortgages. They will usually want personal guarantees and such. You can still do the BRRRR as that strategy originated from the commercial world to begin with. Good luck!

Best way to figure what numbers you are missing is to hit up the BP calc on rental properties. Start there and it will help you make decisions about if you should sell and all of that. Good luck!

Wow @Veni F.: that is a good list of valuable resources! In the end, we use 10% anyway and just find better deals. If you only pay 8% then you made 2% extra! Good Luck!

Agreed. Start with what they are most interested in strategy wise. We do flips and BRRRR but I wouldn't recommend a flip for the first investment (I did that and it was awful). Then there is notes or multi family etc. Also find out what types of neighborhoods that can stomach being in. That is important because if you don't want to check on a property because of the area, then you are less likely to be successful starting off there. Good Luck!

First, have you tried just the MLS and found nothing? I would try that first because it is free and there are deals to be had there. We only purchase off the MLS and we have had no issues finding deals. You may have to put in more offers just to get one but it is free and accessible. Also, there are probably guys at your local REIA that can help you with what list can work well in your area. Good Luck!