All Forum Posts by: Eric Severson

I have used Daniel in the past and he is overly thorough. I used him for my personal residence and he saved me from a real mess of a house. I found him while moving from Los Angeles to Carmel.

Daniel Katz
(Inspector)
TrustPoint Inspections
Zionsville IN

@ Thomas Lo

Finding a deal on the MLS is slim pickens. You can instantly save 6% by finding properties off market. I have found that most great deals on the MLS are snatched up within a couple hours. I have yet to find a realtor who understands investing and creative financing. I have been late to offer on properties that were listed for 3 hours. If you want great deals you need to find wholesalers or do your own direct mail marketing. I also find that many wholesale deals are above market values so I focus primarily on my own marketing now. You can find many wholesalers in the real estate section of Craigslist. I get slammed daily by wholesale deals which I mostly use the info for market values. However, if you are looking for a turn key property then the MLS would be the place to look. My first rental was through the MLS because I did know any better. Seeking information led me to BP which was life changing.

@Mike S.

I live and invest in Indiana but prefer to stay out of Indianapolis. Qualified tenants are a major problem and I stay in the $1000-$1300 rent ranges for single family.

Layfayette is a fantastic area and I would love to invest there in time. Lafayette has JOBS!!! I just sent out my first DM to Lafayette and West Lafayette.

In general Indiana is very old and properties are quite run down. Foundations are also big problem in Indiana. I personally try to invest in newer homes built in the 60's and up which honestly really limits me. I also prefer Urban homes connected to city water and city sewer. Indiana can very rural.

I live in Carmel north of Indianpolis and I prefer to invest in my own backyard at this point in my investing career. I wasted almost a year looking at houses under $50k and everyone one of them felt "slum lord" like. Some areas I went to and I never got out of the car, for example an opportunity zone. I focus outside of the circle freeway, interstate 465 for those not familiar. I now focus on $100k-$150k ARV ranges in areas with GREAT schools with rents in the $1200-$1300 ranges. I certainly do not meet the 2% rule but I can cash flow positive which is all I care about right now. Even in that rent price point, I struggle with tenant qualifications. My lowest price rental I bought and rehabbed for $85k that rents for $1050 was the easiest to rent as far number of applicants. At $1300 the number of applicants is scary but I do get them rented. Just sharing my limited experience in Indianapolis as a person who lives here.

You are a future millionaire. Definitely leave any toxic environment because misery loves company. You are who your friends are so become friends with the "rich dad club members". Every market is the right market. You just have to find your niche. Start by joining and attending local real estate groups especially BP meet ups. Anderson is a great rental market but the homes are for sure old and run down. The key is to start and take action. Live where you want to and invest where you want to. Learn systems and there is no limit. 

@Clifford Paul

INCREDIBLE!!! Thank you for your service and I am so thankful Americans are paying you back to the exponential degree. Well done!!!

@Paul Ellis

Everybody has different goals and has their own strategies. The only wrong strategy to investing is not investing.

@Joanna Laguerre

Owning your own place is a liability unless you house hack so there is nothing wrong with renting.

I personally think the greatest advantage of not investing in someones own backyard is being forced to network and build systems. Build a system so that you can scale. I invest in my own backyard and I have no systems because I have not been forced to do so. The hardest route will reap the greatest benefits. Now as far as markets are concerned, invest where there is cash flow. Cash flow is king.

Thanks in Advance BP but I need help. I did my first direct mail to pre-foreclosures and got a highly motivated lead. The seller is onboard for subject to. My dilemma is their current loan structure which was modified 6 years ago to a 40 year. At first I thought the mortgage had 14 years left which would have had tremendous monthly prinicpal pay down. It actually has 34 years left and the principal pay down is $60 per month (rounded up) at 6%. Looks like no balloon at the end as a result of modification. Market is super strong B+ where Plainfield has A+ areas so there should be long term appreciation and rent increase with time. My gut instinct tells me one thing so I am seeking opinions and advise. My strategy is long term buy and hold and tax adantages.

The Deal:

ARV - $130,000

Balance - $78,832.50

Reinstatement - $15,705.45

Repairs needed (hopefully kind of mild hoarder scenario) - $10,000

Monthly Payment - $605.74

Market rents -$1250-$1300

HOA - $35/month

Tremendous monthly cash flow opportunity. One major long term repair will be the roof. 2001 build and is original. I have the cash available for the reinstatement and repairs.

@Lisa Sluss

I was turned down this week for a HELOC on a rental property owned free and clear requesting 70%. Their explanation for disqualification was that there was no mortgage on the property. The opposite of common sense. As expensive as a mortgage is, it may be worth while to take out a smaller mortgage that qualifies you within your debt to income and then later try to get a HELOC. Maybe a commercial lender can cross collaterialize both properties to get the cash you need.