All Forum Posts by: Derek Gendig

I'm seeking some advice from persons currently buying tax liens in Indiana.  I am already involved with real estate in many different ways but I've got funds I'd like to allocate to buy some tax liens.  I understand the general strategy and concept but I am not sure where to get started.  Anyone currently buying tax liens in Indiana that can offer up some advice?  I'd greatly appreciate some direction.  Thank you in advance!

Marco -

Are you interested in more multi-family inventory in Indianapolis?  All units are turnkey and most are already rented.  

Steve -  I am looking for fix and flip in and around Indianapolis.  We are targeting the better school systems.  Preferably outside of the 465 loop but we do realize that there are deals located inside as well.  If you come across anything that might, please keep me in mind. 

@DustinRose

I work with a property management company here in Indianapolis as well as own an investment portfolio here locally.  

Nearly all of our clients are out of town/out of country.  Our management software is entirely cloud based giving you access to all your files, photos, documents etc 24/7.  If you are interested in finding out more, PM me and I'd love the opportunity to tell you more.

 Cheers.

In most cases keeping earnest money can be difficult because a document must be executed by both parties in order for the earnest money to be released.  So unless an agent is savvy enough to get the document executed prior to a problem, EM can be a pain to get.

Regarding your situation, no one will hunt you down.  They will most likely get upset and angry but buyers backing out is actually quite common.  As John P. mentioned, try to use something in the structure of the contract to be released rather than saying "I changed my mind, I want out".  I find it helpful to defer to a high power by saying, my private financing partner/source of funds will not fund this deal because during our due diligence we found ___________.  Try to find something that cannot be remedied by the seller because most Purchase Agreements are written in such a way that a buyer must give the seller an opportunity to remedy the situation.   

 Don't lose any sleep over and and don't wait until the last minute to do it.  People get more and more emotional involved as the closing date gets closer.  Be respectful of everyone time.   

Good luck. 

I am with a property management company located in Indianapolis, IN.  We manage many different types of homes ranging from $2400/month corporate relocation's to $550/multi-family homes.  There was a time, not too long ago, that it felt like everyone was looking for the passive income that can be generated for having 1 roof and 4 individual units.  

There was a period that lasted about 8 months or so in Indianapolis that many investors we looking for SFH rather than MFH. The returns were typically ranging between 6-9% for the SFH and 11-15% on MFH. Purchase price was very similar so I ask today.....who are the MFH buyers today? Are they hedge-fund groups? Reits? Pools of individual buyers? What are you seeing out there?

@IvelisseMatos-

I would strongly recommend using a Realtor to identify a property. A Realtor has many tools at their fingertips so long as they a members of the local listing service. They should initially be able to identify possible deals in the areas you wish to be in within the price range you can afford. Next, they can show the homes to you so you can get rehab numbers. From there I would focus on the property's history to see how much it as sold for in past years, then look at active, pending and sold as far back as 1 year. Try to focus on homes in the same legal if you want the best ARV assessments.

From there its all math to identify deals.  Be sure to leave yourself meat on the bone after rehab and holding costs to cover Realtor Fee's, Seller Concessions, Inspection Corrections and Price Negotiations with buyers (and possible price reductions to keep the property from getting stale).

We are a PM in Indy.  If I can answer and questions for you, help you identify properties or be a resource in any way, please don't hesitate to reach out to me.

Depending on comps and market value after repairs, I would suggest that if you need to barrow the money from a friend or family member, a fix and flip may be the best situation for you until you build a "nest egg."  Rental homes will continue to require attention and money, even after rented.  There is also the risk of a tenant causing damage greater than a years worth of rent and security deposit. 

Put some money in, maximize your profit by leveraging your experience and connections, sell it, make some money, save some money and do it again and again until you have the money needed to hold.  

Best of luck to you.  Don't give up on your dreams.  It will never be  easy but it will always be worth it!

Investing out of state can be difficult but not impossible.  We manage for both in-town and out of town investors.  We handle all aspects of the property for both owners alike; marketing, screening, leasing, inspections, repairs, rent collections, security deposit returns, evictions etc.  We provide more than adequate communications with 24 online access to account information including 3 inspection a year with full color photos.  Our experience has been that since our local owners have access to this information they don't usually go by the properties too often.  They may do a drive by but certainly never access the property.  They like to remain "anonymous" to the tenants as we have a little more leverage with the tenants when things might get a little bit hairy like missed payments, needed repairs etc.  Our leverage comes from our deferment to the third party style.  When a tenant has an unusual request or offers up excuses rather than pay rent, we say something along the lines of "If it were up to me, I would help you but we work for the owner and we have a contract we must uphold.  If we don't the owner can sue us" or something to that affect.  It has proven to be effective in achieving results for owners and maintains a "teammate" mentality with the tenants and owners alike.

Ultimately, it comes down to what makes you comfortable.  Don't take advise from anyone who isn't accomplishing what your goals are as they most likely are offering their opinion not necessarily advise.  Lastly, Property Management is a full time job.  With the number of laws and repercussions for not adhering to laws, it can become overwhelming and ultimately too much for anyone who cannot treat it like a full time job day in and day out.  Please keep that in mind when making your decision.  If you're not born into wealth, real estate is the number one vehicle to creating wealth.  Don't let a tenant take your dreams from you!