All Forum Posts by: Jaspreet Baveja

Hey @Guanzhong Xu! A fellow CA guy who's been investing in Indy for a few years now! Talk to @Justin Capps! Heen been my guiding light for years and has never steered me wrong. I've now done over 300 transactions in the Indy market and highly recommend him! Best of luck!

@Nitesh Gandhi @Himanshu Singh - Indy has been an exceptional market for me over the past few years... Agar baat karna chaho to DM kar lena! I've been talking about my experience out there, as an Out of State investor, over a few podcast episodes and would be open to a discussion anytime.

NO SEC issues as far as I know... If it’s a debt structure, hopefully to an Entity, through a Note, secured by a Mortgage and then backed up by a Personal Guarantee. I have successfully facilitated over a 170 of these types of structures so far in the Indianapolis market and should not be illegal or against the SEC Rules... Talk to a Securities attorney to confirm... 

Hey @Jessica Piff, sorry to hear of your woes. I would HIGHLY suggest finding either Private Lenders, or financing partners who Know Like & Trust you to give you the money for these deals. Once you have a few under your belt, your local CUs will likely be happy to do a Portfolio Loan and refinance most of the money back out to you /investors/ lenders. I’ve funded deals as low as $13k for people before, so, not just speaking theoretical here. These mythical Private Money Lenders exist everywhere, and our goal (at least mine) is to help fill the gaps where neither conventional nor HMLs want to operate! Wish you the best!

Thanks Taylor! @Nick Shri - I’ve been underwriting borrowers as a Private Lender in the Indianapolis market for over 3 years now, no employees or a large company/overhead, have done over 170 loans, and have helped MANY fellow investors place their funds in these loans (Whole Note Investing) with a 0% default/late payment or foreclosure rate so far. I say this just to help you understand who I am and where I’m coming from...

Based on the options you outlined:

1) Equity partnership is best when there is a high level of trust in the deal, the operator and the fact that you’re ok to take the risk (together) of the deal failing & 100% Principal loss. NO Guarantee it does as well as you’d hoped, or well at all!

2) This debt structure offers none of the upside of the equity structure, but SECURES your downside considerably! You have the Note, Mortgage and preferably a Personal Guaranty to fall back on to recoup your Principal and Promised Returns through foreclosure, liquidation or even going after the person to help make you whole. 
Hopefully that helps, and if you want to dig deeper, let me know! Best of luck!

@Mark Alan Adams - A private lender should easily be able to put a 1st lien on the home, perhaps charge a higher rate, but for the short term, it should be easy. By the time that comes due (6-12 months), you should have enough equity and market should allow for a cash-out refi at a local Credit Union, or even bigger institutions...

@Hobart King - You MOST definitely need to talk to:

Ashley Brown - Personal Lines Advisor @ Conner Insurance

You're welcome to let her know I referred you, but she is able to write nationwide (whole country, not just the company! 😉🤣). I've got myself down to about $38/door with her now! WELL protected with a $5k deductible and $.5MM liability coverages etc...

@Kevin Wang - I had bought my 1st out of state duplex for about $40k in Indianapolis back in 2017. Projected cash on cash was about 24%, and no, I NEVER realized that return! Ended up evicting, turning, and eventually flipping it, and yes, walked away with $, but sheer dumb luck and unplanned appreciation saved me. Haha

There are STILL properties available for that price range, but in other markets. You could try to get a loan instead, but most banks won't touch loans under at least $75k, and even then, will charge high points and fees to do that.

I've since gone into Private Lending to get financial freedom, and only lend out of state, while I live here in the Bay Area. Don't just assume that buying SFRs is the only way to invest in RE. Explore your options and really figure out what you'd want your days to look like and what you would ENJOY doing for years to come... Best of luck man! Feel free to reach out if you want to talk.

@Jon Crosby - Great advice! I would just make sure that @Kevin Wang reads about these companies on some open forums and makes an educated decision.

Don't just assume that just because a PM is in place and is doing a "good job", they'll continue to keep doing so, and that it will be to your standards. Always do your own due diligence, talk to other competing PMs in the specific area to gauge market rents, conditions, crime, employers, and other important determinant factors.

Best of luck sir!

@Joseph Crunkilton - How long have you held this asset and how many hours per month do you have to dedicate? Also, what kind of Cash on Cash return are you seeing in ACTUAL returns vs Pro-Forma/Projected returns? A /B / C class asset in what kind of neighborhood? Thanks!