All Forum Posts by: Adam Gerig

Just closed on a 2bd/1ba home with a one car detached garage.  Full basement.  Good roof.  Have one of my main contractors' subcontractor getting ready to lease next week.   It will be rented for $400/month which is low, but I know I'll have a good renter in there.  

I'm selling over a 14.5% cap rate based off what I anticipate for expenses being around 45% of rents since we did almost $4k of rehab on the place to get rent ready.

($400/rent - $180(taxes, insurance, maintenance, vacancy, and property management) Should net around $220/month after everything is said and done.  If interested in properties like this or this one in particularly let me know.  If I don't get any interest I'm just going to keep it as part of my portfolio, but cash is king!  Would split closing costs.

@Nick Miller  I remember that day!!  Gotta love the business!  It is always interesting!!

I'm in the process of getting a portfolio loan in place and have ran across several interesting programs out there to say the least and was just wondering if anyone has a good contact for a bank that are basing their LTV off of BPO's instead of doing full blown appraisals?

I am actually working with Wells Fargo right now who will do HELOC's on rental properties and not charge for an appraisal as part of their deal. I love that idea however, I'm not sure what they are going to come back at. I have a local institution who will do a portfolio loan, but they want $300 an appraisal and for 20 properties there goes $6k. So you can see my dilemma I'm looking for a good rental bank that will do portfolio loan, but not charge me out the wazoo for estimating the value of the property.

Any insight would be great.  Even if it's your chances are better at finding a purple unicorn than finding a portfolio loan bank that isn't going to charge ya $300 an appraisal.  

I've made a contact with a seller in Fort Wayne that has ability to sell off about 50-100 rental properties in Fort Wayne, Indiana.  Gross rents on the package I'm talking about are $7400/month.  Our company could help get the deal closed, if you aren't buying all cash could help get financing in place, and manage the properties as well.

They are asking $374,000 which is $22k/unit.  Even on 50% rule you're looking at a 12% cap rate.  If you were to leverage your money through the bank 25% down you'd be looking at a leverage rate of 16.6% cash on cash return based off 50% rule.  

Ability to put deals together thru IRA, cash purchases, or through our contacts at the local bank. Perfect for those that want to leverage their money to garner better returns. Let me know your strategy and I'll do my best to accommodate your needs.

I am a realtor, investor myself(own over 20 rentals), and have managed properties for over 9 years.  Our company manages over 1200 rentals in NE Indiana and have over 50+ years of experience in the company.  

@Michael Thompson  send me a message I'll send you over an editable version of our lease we use with our property management company as well as our application if you don't want to re-invent the wheel!!

@John Richardson  I think another possibility would be to look at a land contract purchase.  With $40k down you should be able to find someone that is motivated that would be willing to give you terms while you get things sorted out.  One it will allow for instant cashflow if structured correctly and secondly it'll allow you time to possibly improve the property and possibly cash-out refi down the road if you'd want.  

This would be the route I'd go if I wanted to get started now and didn't want to wait on banks.

BP'ers-  If anyone would be interested in a building in Garrett, Indiana.  Owner is asking $260k I've already got him down to $225k.  All units are rented.  Most are month to month or weekly payers.  Based off YTD numbers he's provided this thing should bring in over $41k this year.  At a $230k purchase price that'd be a cap rate over 17.  I have physically walked all 12 units they are all in good condition he bought them about 2 years ago and rehabbed them all.  He put a new rubber roof on half of the building the last 3 weeks as well.  It's a two-story stucco building that is chipping pink in color.  All separately metered as far as electric and he pays all utilities so that would be a potential addition to the income he's making as well.  The other half of the building is metal roof.  

Based off what he's provided me as far as rent rolls you're better off in this area to keep it all utilities included and just make the tenants pay rent as the electric per unit is minimal and one less thing for them to worry about.  

Honestly, the only thing I would do is paint the sucker at some point and replace wood windows with vinyl at some point.  A few do have vinyl windows.  Plenty of parking.  If you want the information I've got PM me and send me your email I'll send over PDF's of 2013 and 2014.  

Even with management in place at 10% of gross rents this thing should still make you very good money and if you hire our company to do it best thing is this property is 10 minutes from our Auburn office location making it easy to handle any situations that arise.  

@Account Closed at the current pricing and terms based off my calculations it would be over a 9 Cap.  Now that's at 94% occupancy and the ability to increase some things especially if purchase price are terms are negotiated better on behalf.

To anyone else who is following this thread.  I walked this property on Monday.  It is in VERY good condition.  They had the entire place re-blacktopped and are putting a new roof on the only building that needed it.  The other buildings have roofs that look to be in the 3-6 year age wise range.  This thing will cash flow.  They also have taken over complete management of the building netting them an additional $4k in cash flow/month.  If interested in more details or you haven't gotten them from me yet PM me or send me an email and I'll forward you on the information from the previous owner prior to auction. 

@Sandro Sossi  welcome!!  If you are interested in NE Indiana let me know.  Have got several MF opportunities available currently.