All Forum Posts by: Justin Polston

@Tesho Akindele how far away from an urban hub are you comfortable with?

@Minna Reid

I'm not the brightest crayon in the box by any means, but I did pick up a minor in Econ from IUB, and I think about this stuff A LOT. I'm with all you guys but you have to think for yourselves.

My suggestions/thoughts for those that truly are scared even though nobody asked:

1. Pick up those homes under $200k. Not the $400k+. That'll hedge against your exposure IF something crashes tomorrow. In the great recession those borrowers that were extending themselves were the first to go.

2. The stock market is way more volatile at a way faster clip. So when stocks correct (like they almost did this week but managed to avoid correction territory) keep your head on a swivel. Real estate is so slow though it's hard to notice until you have that "hindsight is 20/20" feeling.

3. Think super simple here, like supply and demand simple. So we have pinched inventory for an extended period of time. Prices go up. Eventually they'll cap out like they have down south and out west. People only earn so much you know? So watch out for more inventory steadily rolling out onto the market, especially the markets you are most familiar with and from which you can draw conclusions for yourself. More inventory and options for buyers will depress the pressure on prices.

4. What we are literally in the middle of is a leveling off of prices. Probably through May. So until wage inflation starts up this summer with everything opening back up, prices will hover where they are, then fire back up most likely I think. Probably specific markets will fare better than others, like NYC exodus.

5. Inflation IS happening. Has been all 2020 even if the Fed didn't want to say so. More stimulus just passed, more liquid capital. What are you doing with yours? I'm dumping it into real estate, or stocks, some kind of investment because I don't want my cash a part of some vicious cycle of inflation.

6.Borrower's rates are increasing, so people on the fence about buying because prices are "too high" will probably resort to consumerism and that immediate gratification of something new by making their next home purchase finally, or maybe beginning their a new build. Borrowing power is a huge deal.

7. You'll be kicking yourself for nothing buying all the cheap debt you could get your hands on when interest rates are 6 and 8%. So buy now, knowing rent also is subject to inflation.

8. Leading me to biggest thing here. TVM. If you can wrap your head around debt, inflation, and TVM, you'll realize that all you need to do is jump in (hard part), and manage your assets wisely and critically, which is the easy part.

Idk why I'm stopping at 8 but I think that's enough for now? Again just my opinion not backing it with anything really except my perception and being able to calculate risk.

@Brandon Sturgill in ref to which part of Indy. Jump to a suburb or two and you'll find some crazy price increases...

Shelby County. I notice you like data check it out.

@Spencer Gray maxed out!

@Micah Kohls is this click bait? Lol. But really. Being south of Indy, we would operate under similar laws, and it could benefit to at least have a conversation. My door is open! I might be able to help or you might know way more than me!

@Rene Owczarski 2% is my favorite return.

I don't know ADU?

@George Otiono hey! Let me know if I can help in any capacity. I graduated from IU Bloomington. And if it were me, I would consider a plain ol' househack to get started.

@Orion Hernandez I started when I was still in high school. So don't let anybody tell you it can't be done right now. I had done 3 fix and flips prior to college, and had 2 rentals bought on land contract via seller financing by 19. If you are somewhat mechanically inclined and you can work some sweat equity, you'll do well. Look at a deal, get a warranty when you buy, work numbers backwards, don't overpay, buy in suburban or semi rural areas.

When I was younger, my thought process was to break even-ish, allowing a tenant to basically pay for the house for me and I just managed tenant placement and repairs. Many times my leases would have first $100 in minor repairs comes from tenant. There are a ton of little things like that to tweak the game in your favor. But you'll need to be hands on, probably self manage, etc.

@Anderson Smith if you go into the suburbs of Indianapolis, you'll find duplexes for $110k to 120k that rent for 1300+. We have a few turnkey as we speak that meet that criteria which seems to beat your criteria. These are B- C+ areas specifically in Shelbyville, so I can speak directly to that.

Triplexes, you'll pay a little bit more but the rent revs increase, my experiences have been near $130-140k for $1800 in rent.

Quads and multiplexes are all over the charts depending on how rough the conversion was. Last quad we got into was rougher, $2200 in rents and $165k sale. However, you get into an area with the appraiser/financing where the return on money is worth it but is the physical structure going to comp out? Probably not. So many of MFR deals are off market and appraisers aren't always educated/slick enough to figure it out if it is outside their vanilla consumer cookie cutter neighborhood appraisals.

Again, most of these are Greenwood, Shelbyville, Franklin, Greenfield, Rushville.

Good luck!

I'd like to post some real messy stories every once in awhile where I ended up being the buyer, and how the deal came to fruition.

So as an indianapolis broker, property manager, and investor, sometimes my mind is BLOWN. I try to make sales for clients, but sometimes the product can appear so "messy" that the sale appears equally so. (Mind blown meaning, usually the messy deals are the best ones in my opinion, because the opportunities are harder to see!)

You investors out there, in analysis paralysis, unsure when to pull the trigger or not even sure where the trigger is, I want to talk to you! Don't be afraid to jump into your dream of passive income, fun flips, and being a professional number cruncher.

This one is more technical maybe versus messy?

Deal was $75k for 2 SFRs on one lot. Story goes, a garage on the rear of the property was converted into living space back in the early 80s. It is a ranch style, 3/1 on a slab. Separate electric. Total size near .6 acres. It was essentially rent ready. So we marketed and rented for $1130 a month. ✔️

Front house was in heavy disrepair, not at all rent ready, stuck in the 70s with a terrible layout to boot. So $35k in rehab and we have a pretty good 3/1 home that's nice enough to flip (but we are in buy and hold mode). Rented ✔️ to someone relocating from Mississippi, $1100 instead of $1200 a month was agreed upon as we still have some spring clean up to do and he'd have to deal with some inconveniences.

Have $105k all in hard money against it, ready to refi out. That's the messy part right? 2 SFRs on one lot...what would you have done? Because so far it is a home run right?