All Forum Posts by: Eric Severson

@Corey Minard

I try to stick with $1000 per month and up units. I have found quality tenants to be a challenge. My $1070 per month unit in Indianapolis near Speedway still attracted felons and sub 400 credit scores but there were tons of inquiries and applications. Even my $1300 per month units attract sub 500 credit scores in B++ in the suburbs of Indy. When I first started I had a 600 minimum credit score and very quickly learned I had to lower my minimum to 500. I guess I was naive but also had to reduce my 4 times income ratio to 3 times. Craigslist attracts 99% unqualified people and section 8 requests. Just this week I had a guy in bankruptcy inquire on a $1300 per month house through Craigslist. My other marketing avenues are Zillow Rental Manager and Facebook. So far this month Facebook has far out performed Zillow Rental Manager (Zillow, Trulia and Hot Pads) going by the inquiry matrix. Not sure my exact point here, but my easiest and best performing house is the Indy house near Speedway and it is the least valuable and is the house I have the least pride of ownership. My Plainfield and Brownsburg units which I take pride in owning are harder to find qualified people. In those B++ areas the people who can qualify own their homes. Perhaps my point is proving the need for a large pool of potential renters.

@Rodney Burayidi

Congratulation on taking action and closing on a deal! Thanks for sharing your experience. All the books, podcasts, youtube videos can never substitute real world experience. You will be profoundly successful and please keep sharing your experiences.

It takes time to get educated. I am only 1 year into it and my learning curve has grown exponentially in the last month or so. Having no money and no credit is a great advantage because it will force creativity and forces better decisions. I had money and credit and I made a couple of very bad decisions. My education grew exponentioally as I ran out of money and credit because I want to keep going. Having money and credit will enable bad decisions and force you to not be creative. Mistakes is part of the cost of education but education should not be that expensive. Desire will make you take action and being creative will fullfill your desire. Walking door to door is free, asking for owner financing is free, asking for subject to is free. Those are just questions but they have to be asked. No just means not right now. There truly are ways to do this with no money. I think a better phrase is not your money. Real estate requires money but it does have to be and should not be your money. Find a deal to wholesale but joint venture with a wholesaler to walk you through the process. Going through the process is the greatest learning tool. 

@Cameron O'Connor . Thanks Cameron. I will mark this date and time on my calender.

i cannot specifically answer your question but traditional mortgages are always a nuisance. The economics of scale would not involve tradional mortgages anyways. Focus on off market deals finding people who need help. Sandwich lease options, owner finance, subject to existing mortgage and of course wholesaling. Thinking creatively is better use of time than trying to qualify for mortgages. 

Hi Brandon welcome to Indy. Your automotive background should fit in really well in the racing capital of the world. I hope you like open wheel dirt track racing! I am also new to Indianapolis from Los Angeles. Been here for about a year and half and I have learned so much. My wife and I bought our personal residence in Carmel for the schools and our 3 kids. So far I have been buying SFR and I would be glad to share what I have learned so far. I am very particular in what I want for long term buy and hold and focus on a couple areas. I am hoping to 10X this year and so far on Jan 2nd I got the first contract of the year. My first contract of the year with my 10X goals came with a mentor!!! 2020 is going to be a great year.

FYI, I also wanted mountains but settled for corn fields.

Give an inch today and they will take a mile tomorrow. Charge the $50 but add it to their security deposit in savings. If they get their deposit back when they move out they will have a small bonus. Or buy them a $50 gift for the holidays.