All Forum Posts by: Justin Polston

@Allvin Dsouza you bet

@Tchaka Owen @Allvin Dsouza

Can I chime in with Tchaka? Literally today, there was a wholesaler selling one of my PM clients for $105k a duplex in Shelbyville IN (suburb donut county to southeast of Indianapolis). This duplex generated $1400 in rent rev, with seller floating near $300 a month in utilities. I advised against the deal as we have 4 plexes here that generate $2200 in rent rev with utilities separate and they sell for $120 to $140k.

I can't speak for other variables there in Indy as I push the suburbs. So if there is a long term hold/gain scenario, I hope there is. You should be able to do much better with your cash.

@Gabe Chase biggest thing here is your age if anything! Stick with it. If you do it right it will feel slow and boring. Then one day you'll wake up and have a house paid for, then another, then another, and it's awesome! Take it from me!

@Jalon Scott a lot of people put RE on a pedestal. Once you have your own personal real world experience, it makes judging and contemplating that much easier. Especially if you are long term buy and hold, obviously you'll get your money's worth if you plan on holding for 20 years and continue to grow.

@Jalon Scott for what it is worth I have seen some do a mediocre deal, low exposure to risk, for the sake of getting their feet wet. It can be an "OK" decision if it is single family, under 95k in cost, near the 1% rule, rent ready, and grab a warranty while you're at it. Rent ready, also, could mean just lacking a few cosmetics.

Don't go MLS. Look for someone who can offer off market deals with no pressure. It used to be easy to tie up a deal from a wholesaler, but now they even have H & B.

Best of luck!

@Maxwell Wuensch hey! You'll want to consider the suburbs big time. Ones I am familiar with, and have seen surging demand for, are:

Franklin

Shelbyville (Shelbyville is interesting because the city is spending $19M on renovating the down town district)

Greensburg

Greenfield

Greenwood (go after the greens to make green) Rushville...

Hey all!

I'm not used to asking for help. I am a fairly experienced RE fella, but this one is exhausting me. Analyzed and it's a home run.

Long story short after having several $500k plus package deals cross my desk and couldn't do anything with them, I vowed I would give it my all in 2021. After connecting with many prospects and note investors, had this deal locked down and it is a home run. But, as RE goes, curve ball and 2 solid money guys opted for the next one. I sometimes wonder if the money wants deals but when you ask them to go all out they can't handle it.

The deal is under contract. $700k loan. 10+ Cap rate after all expenses at the loan amount (forecasted light on maintenance and vacancy since we are a PM company).

Was willing to pay 12% with about 3500 per 100k borrowed, dispersed between front and back loaded.

This is Indianapolis and is comprised of a (1) 12 Unit apartment building, all brick; (2) brick duplex; and (3) a near downtown Shelbyville (suburb of Indy, city is investing $19M into the downtown district, built a parking garage, it's a pretty hot market over past 18 months).

Have about 25 days to close and I don't use banks (unreliable, too many variables). Would rather not wholesale...

@Mike D'Arrigo you should check out the suburbs' numbers!

@Ryan Cruz shoot for the suburbs of those areas to find less competition and more deals. Like indianapolis where I am from, you'd want to try for any of the donut counties, and cities like Shelbyville, Rushville, Greenfield, Franklin, Greenwood, etc.

Just pick any metro hub really and go 30 min out drive time and you'll find decent homes, less crime, less "street by street" scenarios, you get the drift!

@Scott Gordon you could try seller financing, buying distressed with low down payment, looking for a broker who can help you coordinate private money....lots of options out there that no one really talks about because they aren't mainstream.