All Forum Posts by: Joseph Parker

Currently running numbers on a commercial investment property (office/retail) listed today in my area. $800k asking price.

Quickly emailed my local community bank lender asking about current rates. He said rates are ranging between 4.75 - 5.75%, 20 year amortization, fixed 5 years with max 80% LTV.

I'm assuming 80% LTV is most commonly the highest ratio, correct? Unless maybe an extremely experienced investor had access to higher rates. I'm not as familiar with these loan terms as I've been fortunate to pay cash for much smaller properties in the past, but wanting to do my due diligence on this property with decent potential.

Thank you!

@Thomas Hartman I'm a Realtor and investor in Kokomo, IN (one hour north of Indianapolis and 45 minutes from Lafayette). I've lived here my entire life, besides college, and can say that while investing in a city like Kokomo is not an appreciation play, the cash flow can be very attractive. Kokomo is heavily dependent on the auto manufacturing industry, so the recession hit us hard, however, the city has been booming the last 8 years or so, with another $400 million investment from FCA just announced last week which should come with up to 1,000 jobs here in town. Single family residences can be purchased for $25,000+ and demand, on average, $650+/mo rent, so the numbers on paper can be great. Duplexes and multi-unit buildings are not as commonly publicly listed for sale, but they can also be purchased for much greater than the "1% Rule". I owned a 24-unit building in a C area that cash flowed well for many years until we decided it was the right time to cash out and move on to another venture two years ago. Yes, these may not be in the best areas of town, but doing your due diligence or using the right property management company can help avoid as much headache as possible while you collect the rent. Feel free to message me any time with questions about our particular market!

@Timothy Colman I did just this last year. I currently have a W-2 job as the Controller of a mid-size business in Kokomo, IN. I obtained my real estate license late in 2018, realizing not many local Realtors use Facebook as a method to attract leads & clients. Next week, I’ll be closing my 35th transaction if the year totaling right at $4.5 million. Almost half of that has been through Facebook. Now I will say that I’m on a computer nearly all day, every day at my W-2 job and am able to occasionally view new listings, quickly fill out contracts, etc. A lot of the clients I’ve helped also have day jobs, and I estimate I average less than 10 hours/week actively showing homes, attending listing appointments, etc. I’m trying to take advantage of our hot market while it lasts, but I’ve learned that if you work smart, make lots of connections and treat clients like family, success will follow. I chose our local RE/MAX brokerage based on the commission/fee structure and brand.

@David Simard as of now, I do not intend on going full-time. I'd have to feel very confident that I could do a certain amount of volume annually before ever considering making the switch to full time. My background is in finance and accounting, so I have a fairly structured, organized, budgeting mind. For now, I like knowing what I'm getting paid weekly at my full-time job, along with the medical benefits, 401k and profit sharing that it provides. 

@David Simard I’m currently doing this exact thing. I’m fortunate enough to have a fairly flexible full-time job as the Controller of a mid-size beverage distribution company. I’m on the computer in my office all day long, able to take off lunch hours as needed, so it just made sense. I do not intend to leave that main job, however.

I got my real estate license last September and joined our local ReMax brokerage. Obviously, being on the listing side of the transaction is easier as a part time agent versus showing buyers multiple houses, but it seems as if most of the buyers I work with have similar 9-5 jobs like I do, so prefer to see homes on their lunch hour or after work/weekends. I can do paperwork at my main job any time and market myself/look for leads on my computer at my main job as well. It’s worked well for me so far as I’m approaching $2m in sales for this calendar year-to-date. Some luck is always involved, but if you’re willing to work hard and put forth the effort, things occasionally seem to fall into place.

@Drew Beaver I live in Kokomo and have owned an apartment building along with a small commercial property. Rental market is decent here, strongly tied to the automotive industry which makes up a good chunk of our employment. Lots of decent opportunities for cash-flowing properties. Not so much an appreciation play here.

I personally believe it depends on how demanding your 9-5 job is, from a time perspective. I have a 9-5 that I've been fortunate enough to automate enough to make that job fairly flexible. I obtained my license this past fall and really started to focus more attention to RE just before the end of the year. I find myself spending a decent amount of time on my 9-5 office computer generating leads, am able to complete contracts quickly while at work, if necessary. 

Of course the more difficult piece is showing homes. So far, a lot of my buyers also have a 9-5, so we're able to look at a couple homes during a lunch hour or immediately after work or weekends. Listing homes isn't nearly as time consuming, so I try to dedicate more time on that side of the transaction. I've done well so far. Zero transactions in January. 5 transactions in February and on track for 5-6 by the end of March. I just passed the $1m mark for volume last week. Goal for the year was/is $2.4m. I'm trying to make the most of it and work smarter, not harder!

@Sheldon Cook I'm a realtor and investor in Kokomo. If you'd like me to get any more detailed information on this property or any other investment properties that you see, I'd be happy to help!

Kokomo, Indiana is also a great place to look for rental properties! While the city's economy is pretty heavily tied to the auto manufacturing industry, rent-ready single family homes can easily be purchased for as little as $30,000. The "1%" rule here is attainable on nearly every investment property you look at.

Hello BP community!

I've been active on the investment side of real estate for a handful of years now, but decided this summer to pursue getting my license in order to not only use it on my own investments, but to also help others buy and sell both residential and commercial properties in my area.

Currently, I'm using various methods to get my name out there and market myself to potential clients. Besides working my "sphere of influence" in search of those who are considering selling or purchasing a property in the near future, does anyone have any tips or suggestions for successful strategies you used to find clients when first starting out??

Additionally, if anyone is looking to invest in Kokomo, Indiana or the surrounding area (which I think is a hidden gem for investment properties), I'd be more than happy to help out in any way that I can!