All Forum Posts by: Adam Gerig

@Account Closed while I don't have tenants who line up with essays and camp out waiting to rent a place we also don't have to pay $500k for a 3bd/1.5 ranch. While I don't think your intent was to bash on us and I agree with a lot of the comments you made I've had numerous renters whom have made me cry because they got the house they wanted and wanted to thank us for giving them a chance. I've been invited to birthday parties, got countless thank you cards, and heck even turned some renters into home owners in the meanwhile. So while we can't compete with the appreciation of any of the coasts we have GREAT cash flowing properties that allow investors who don't have a boatload of cash to still make great returns on an amount that would be a downpayment for a house with 3-4% returns in California. I'll now hop off my soap box. #hoosierpride

I'm transitioning my license over to a salesperson and honestly if I were starting over I'd just wait. It's going to cost you more money to take the 4 tests and 2 different classes then 3 tests and 1 class. That being said if you can't wait go for it, but I hate to be rushed on things and with the 3 tests you have to pass(class, fed, and state) you have to schedule them out and it may rush you by the time you get to middle of May in passing a class. Again, just my thoughts, but if you have any questions in the interim drop me line. Be well!

Thanks for the support guys btw too!! It really does help to have a "team" in your corner! I'll keep this updated on progress as things sell I acquire new etc. Currently I'm setting at $208,500 this year in acquired value, but I'm selling 2 of those properties so that'll drop me back down to about $130. I'm trying though!! No harm in setting lofty goals!

I'm much more selective than buying on 50% rule, but it makes it pretty easy to see what a property's actual worth is if I want a 15+% return. Already rented at X, I want a Y % return property is worth Z. I'll take em all day if they fit that!! And don't know who wouldn't! (obviously have to take in to account maintenance items)

I have some private lenders on board and already some properties in my portfolio so I'm doing a mixture of flipping to my other investors and paying off debts to get stuff free and clear. It's going to be a lot busier than I had first anticipated when I first made that goal because I don't want to be heavy laden with loans so I'm trying to acquire a couple flip them and pay off this one over here and continue forward. I'm also doing some land contract deals that allow for passive income up front. It's all in the structuring and the price you buy that's where the true value is.

I honestly go through probably 50+ houses a week and i'd say 80% of them are way over valued or the owner doesn't know how to evaluate a properties worth. EX) Well I've got a 3bd in this neighborhood that brings in $500/month rent I'm asking $50k for it. Lol I just keep it moving, but there are deals to be had just got to keep pounding the pavement and networking!

Good news!! Got accepted offer on unit # 4. It is a 3bd/1.5 bath house that is on SEC 8 housing that passed inspection in January. Has a 4-car garage that needs some work, but isn't currently being used. Tenant will be staying and is paying $655/month. Priced at 12% cap rate based off 50% rule.

$32,750.

If anyone has interest in these properties email me or PM me I'll give you addresses and details. Also, have several different home inspectors I can give you information on, but all inspections would be at cost to potential buyer. Can also give you information on our management company and terms of management.

Wow!! I'd say that's playing on a little different scale then I am. One good note is that I got accepted offer on a 4th property in 2 days. So I'm set to close at least 4 properties this month and am looking at a 5th property(same seller) in 30 minutes!! So April has been good so far!!

Got 3 accepted offers today!! Good start to April!!

I'm selling 3 properties in Fort Wayne, Indiana that our company manages and I own personally. I am pending on a 4th one and should I close that one it will be for sale also.

Here's the details (all are SFH):

Unit # 1 rented at $675/month and I am selling at $33,750

Unit # 2 rented at $415/month currently selling at $20,000

United # 3 rented at $400/month by gentlemen who's been there since 2008 currently selling at $19k

These are all currently rented and all priced over a 10% return on investment. Will sell these individually, but prefer to sell as package. Have a 4th house I am pending on currently if it is accepted I'll update this post with the details on that property as well. It is a SEC 8 house and is a long-term tenant. If you have interest you can either reply to me on here or email me directly at [email protected] please just let me know which one you are interested in or if you want the package. Thank you!

@Jay Hinrichs I think I know of the TK outfit you are talking about. They did their first deal here in Fort Wayne that they "turn-keyed" to our company for property management. I found out from the owner what they paid and was astonished. They paid at or above market for a property strictly off the numbers and i'm still scratching my head to figure out how they thought it was a "deal". It's sad to see that happen to people, but i just don't understand how someone would think it's a good idea to buy a property out of state from another out of state entity. If they don't have their "roots" here and haven't been in this market for anymore than a year how do they have any idea what a property is worth? I'll hop down off my soap box. It just really blows my mind when I see stuff like this happen. Granted we are all here to make money, but I think sometimes outfits like that are definitely part of why everything collapsed. A small cog, but still a cog!

I've been inspired!! Saw someone's 90 day challenge and I've had a note on my dry erase board for the last 3 months when I created my goals for the year of accumulating $1,000,000 worth of property in 2014. At the end of the first quarter I am sitting at $109,500 in buying 4 properties either outright or on contract.

My goal leaves $890,500 worth of value to be created in the next 9 months. I think I can do it i've just got to keep my momentum going.

*Side note* How I am "valuing" these properties is the 50% rule with a little wiggle room so I'm being very conservative as far as what I'm saying the "true value" of these properties are. For instance I've got $10k spread on 3 of the 4 versus what I paid and what they are worth and the 4th one I am buying on contract and have about $10k spread at end of 18 month note.

It really does help to have people holding you accountable saying what have you done, what are you doing to keep the momentum going, etc. If you guys want details or advice on what I'm doing I would be more than willing to share. We are all in ocean I'm just using a different boat!!