All Forum Posts by: Josh C.

Current cash flow isn’t really that important. Just because a building is currently way under market and vacant doesn’t mean you treat it like any other 8 cap. I bought a building with zero income and unfortunately it was a lot more than zero dollars. People aren’t stupid and know what rents could be and will price it at that. Whether that’s a good deal for you or not you’ll have to decide. But someone will pay close to what’s its worth or “should” be worth.

Good luck!

@Sara Swift

Companies are very unlikely to try to steal your money. Contractors yes, but not a legit PM company. Unless their is a dispute you don’t need a lawyer. Just say you are unhappy and want to terminate. Ask if their are any fees and go through the PM contract. Should be a standard business transaction. Sometime people’s expectations just don’t line up. Good luck.

If you put down a 10k EM deposit that isn't contingent on anything they wouldn't care about your POF. Then get your financing set up.

Great criteria, but very very tough to find. Unless it’s a very large rehab value add 80% of value is not laying around. Even if a wholesaler lists one that cheap it sells in under an hour. We did one this year bought for 30k rehab 100k and rent is $1250 so lower than 1%. Although value is higher than my cost, the rent ratio isn’t great. And I’m local and full time real estate. But also did one bought for 20k rehab 70k and rents for $1050. So that is a little better than 1%

So they are out there, but tough to find even for us local and full time guys. I think a part time OS person has zero chance in B area. C yes, but cheap 1% deals in B areas are almost nonexistent.

Price. Sellers will take financing with a higher price everyday of the week.

@Kristen Ray

Taken at closing is less scary. As long as that’s clear and transparent and not up front I’d be less concerned with. People are always trying to get paid every way which way. However, seems odd to pay someone and demand a fee at the same time. Double however, big companies have managers that need to think up complicated junk to validate their existence.

You definitely should. Just state the facts but why wouldn’t you help? Being nice is good for everyone.

One thing that’s true in Indianapolis and other parts of the Midwest is some lots is worth nothing. You could never build on a lot in a 50k neighborhood as the cost is always going to be higher. We once paid a neighbor 2k to take a vacant lot. So it’s worth was negative. What are the addresses?

If you do want to hold them a few years a couple grand would keep the grass cut probably.

We do majority C class in metropolitan Indianapolis. Just be careful as C can mean different things to different people. Our areas can change fast here street to street. I’d recommend talking with a PM prior to buying to get their opinion on the area.

Good luck!

@Bill F.

I’ll echo this statement that big buyers know everything. It’s flawed thinking to believe hedge funds and other big “smart” buyers can’t make mistakes. Mount helix bought around 1000 homes in Indianapolis. They never had the crews to rehab them. Got more fines more unsafe or high weeds or whatever than anyone ever had before. Then fire saled everything. Didn’t even check what it was worth. Just low low prices. I bought one such house they listed for $17k I paid $36k and was worth 80k. Even after I offered them 50k about 6 months prior. They still listed it out 17k. Just silly.