All Forum Posts by: Evan Manship

@Shawn Holsapple 

Too late. I saw what you said and gave him a call. Sounds very reasonable to me.

This property: 29k purchase price

$2300 mold remediation

$1000 termite remediation

+ gutters

Then we're good to go.... probably rent $650-700/mo

All serious, full-time investors have "their guys" or a team of guys they can call for just about every fix/flip project. I am curious - for those of you who have a "team" how did you come about finding them? How many did you go through before you stuck with the same guys?

What can someone who is just getting started do to make sure the same mistakes aren't made?

Does anybody have a good company/contractor that they would recommend for gutter installation in the Indianapolis market? Recent purchase needs completely new gutters and downspouts.

Thanks

@Kevin L. 

As stated above from my fellow Hoosiers, your money is likely better served elsewhere. I invest in downtown-ish areas. Riskier, but I haven't had any serious issues yet. For $75k you should be able to land a nicer home on the outlying metro area that rents for $700-800

@Jaksh H. 

Welcome to the wonderful world of real estate. I was in your shoes at one point so I know the pain and struggles of starting out -- I am just outgrowing the "starting out" phase myself.

If I were you, I would utilize a typical 30/30 mortgage. MB Financial has a $10,000 investment property minimum so you should be fine with whatever property given your income. Once closed, quit-claim deed the property to your LLC, provided that you are the sole principal of the LLC (about $150ish fee depending on the state) It would be worthwhile to call your bank and see if this can be done.

That way, you have your 30/30 mortgage, added protection, and building equity, credibility, and most importantly -- cash flow.

***Also, at any point in this thread, you can type the "@" sign followed by the first few letters of someone's name in this conversation that you'd like to mention. Directly underneath this box there will be a dropdown to choose from the person's name you are looking for. This is a direct mention and will let people better see when you are talking to them. It is the equivalent of tapping someone on the shoulder and speaking to them as opposed to shouting into a crowded party of folks.

Cheers,

Evan

Out of morbid curiosity... how long would you wait on a short sale to come to fruition? I have had a home in Cincinnati under contract since September and I am looking at another on Friday.

I feel like short sales go nowhere. Is my money better served elsewhere? 

Not exactly the news I was hoping to hear. My inspection today revealed a little bit of mold and water accumulating in the basement (this is attributed to the property not having gutters that I was planning on replacing in the first place).

Additionally, the property also has about a hundred square feet (that we can tell) of termite damage to the subfloor. There are also some slight foundation movements and cracks but nothing truly fundamentally catastrophic -- just things I would want fixed ASAP.

The seller is an attorney whom moved to Mexico and is liquidating his portfolio - this being the last one of the bunch.

I am currently awaiting the report from the inspector. What is my next play?

@Eric M. Wanted to get additional information on nuances or other intricate subjects which I should affix more due diligence. I have never done a development or JV deal of this magnitude, so I wanted to get help from the pros.

@Eric M. sorry for the confusion, Eric. My plan is to utilize my JV investor in order to acquire these top-dollar finishes. If I didn't do this, I would have to utilize 203k financing and only have the resources available for medium-low grade finishes.

We will begin analysis of the deal next week. We are taking a final walkthrough with the contracting crew tomorrow.

Purchase price of property - $85k

Rehab (investor money) - $100k (est.)

Sale price per door - $100k (est.)

@Blake Merrell Way ahead of you, Mr. Blake. They're already all separated meters, water, etc. I am more focused on the legal side of putting together a JV deal, getting the townhomes separated and assessed individually, etc.

When you're back in Indy I'll definitely show you around.