All Forum Posts by: Ken Van Haitsma Jr

Appreciate all the replies!  I'll be sure to send some updates once I've had the chance to get in and get my hands dirty fixing up the house.  My wife is documenting the whole fix up process so we can add some before and after pics to the social media pages, so I'll update here as well!

Our story begins over 10 years ago when I became interested in the idea of investing in real estate.  Countless hours researching online, several books, tons of podcasts, and plenty of sweat & tears later I finally received clear to close on my first investment property in Northwest Indiana.  BiggerPockets was definitely the final push that got me to this point, so thanks to everyone who helped me here!

Since November I have been searching for my first deal with my (very patient) Realtor. I changed my mind from initially looking at duplexes to eventually settling on single family, changed the area I was looking a couple times, and changes my criteria for properties as I received feedback on BP. I finally found a 3 bed 1 bath REO property in Griffith, IN which met all my criteria so I jumped at the deal and made an offer.

Since then, here is a short list of surprise complications which made me wonder if we would ever get through it: 

-seller (bank) had some initial reserves with me using a loan even though the listing said conventional loans were fine

-seller made me prequalify with their bank even if I wanted to use a lender of my choice 

-struggled for a few weeks trying to get a lost W2 from previous employer for underwriter 

-while in underwriting I needed to supply some new document ever couple days (or so it seemed), go on a conference call with my banks and credit bureau, write nearly 10 letters of explanation, until I was ready for them to ask for the blood of my firstborn 

-after the home was inspected it was vandalized when someone broke a bedroom window 

-bank refused to fix the window and lender wouldn't move forward until it was fixed leaving me to do repairs on a house I didn't own

-lender nearly backed out because I wanted to use money loaned to me for the down payment

-lender rejected first couple insurance providers I supplied until we finally worked something out

So here we are, after all that I'm cleared to close and begin fixing the house up and getting it ready to rent (BRRRR). I'm still optimistic and glad I persevered even when it got a bit stressful, and if I could advise anyone in my position I would say don't let setbacks get you down. If you hang in there you will still get the end result you set out for initially.

And once again, thanks BiggerPockets!

I'm doing the same, just got an offer accepted in Griffith and I'll be building a team as I get it rent ready. If you and Adrien grab lunch let me know and I'd be happy to share my experience so far. Exciting to see all the new investors in Northwest Indiana.

Welcome to BP, Luke. I also live in Dyer and I just got an offer accepted on my first investment property in Griffith. Best of luck to you in your investing!

I will be working with a few contractors in a month or so. I'd be happy to share my experience with them as well as contact information once the project is done.

@Mindy Jensen - Yes, sorry I can explain more clearly. This was listed on MLS and I am working with an agent. What they meant was, the requirement to prequalify with their lender wasn't mentioned in the terms or description in the MLS. It only said "Terms: Conventional, Cash" and not something like "Conventional with prequalification through approved lender" or something like that. They weren't expecting someone to make an offer with financing so they didn't bother mentioning they would require extra steps if this kind of offer was put in. I hope that clarifies.

@Adrien C. - That's good information. It makes sense that cash offer would only be accepted if a bank inspection wouldn't pass.  Some that are listed cash only aren't in terrible shape, so I wondered if there was something else going on.  I'll also consider seller financing while looking into this.

I've been on BiggerPockets for over 6 months now, and I finally just put my first offer in for my first investment SFH in Northwest indiana. It needs work before it is rentable, but the numbers check out, and when all is said and done I will have a property with good cash flow and equity available.

Here is back story for the question, while I was looking for a property to make an offer I found that most which fit my criteria were "Cash" terms on MLS. In other words, not available for buyers using financing. The house I just put an offer on listed "Terms: Conventional, Cash", and met all my criteria so I jumped on it.

After a couple days, I got a response that they want me to get prequalified with their lender since it is REO and that is their prerequisite before opening negotiations. They stated "This wasn't on the MLS because Seller was not expecting financed offers."

I am wondering if the "Conventional" listed on MLS was a mistake based on the feedback, but the fact remains they are willing to move forward with my financing once I meet their prerequisite. Hopefully soon I will be able to close on this and get a great deal while using financing (I'd love to use all cash but just starting out that isn't an option).

Here is the question, it appears they were expecting only cash offers for this property, but they are willing to move forward with me using a loan.  If this is true for this situation, does that mean it would be worthwhile trying to put in offers on homes which have only cash listed for terms?  Might they be willing to work with financing if you jump through a few hoops?  Is it worth the effort?

I'd love to hear if anyone else does this and has had any success.  It seems like sort of a thinking-outside-the-box method that might be helpful for newer investors if you could get the good deals normally only available to cash buyers with a bit of extra effort.

Appreciate any info!

@Jim C. - That does make sense, and I'm definitely trying to think in terms of deals rather than buying retail.  I think what I need to work on is making this clear for my realtor.  I just recently began working with her and she is aware that I am looking for a good investment, but I'm also aware that she works on commission.  So far she's been leaning to the properties at the top of my price range, which isn't surprising, so I'll probably need to use the information you provided to re-define what exactly I'm trying to do.  I mentioned to her that I didn't want to do much more than cosmetic updates and no major repairs, so this might be why she is directing me to the $80-$100k properties.

I might take you up on coffee sometime soon so I can get as much info as possible going in so my first investment isn't a flop.

@Jim C. - Appreciate the information.  Would you recommend only buying houses south of 73rd for $70k or less, even if the numbers make sense spending a bit more?  The one I am considering I may be able to get for about $80k, but it is assessed at $115k, and similar houses nearby have sold for $105k-$125k.

I'm not planning on selling soon if I do make a purchase, but even getting $1000 per month for a home I spent $85k total on makes sense to me.  Is there something I'm missing that would make this a bad deal?

I'm currently looking at a property just south of 73rd and west of Taft.  It is listed at ~$90k but I'm considering putting in an offer closer to $80k (assessed at $115k).  My realtor assures me that houses in this area can get anywhere from $1100 to $1300 rent in the area.  It's a 3 bed 1.5 bath, needs some work in the kitchen, flooring, paint job, but nothing huge.

Running the numbers with just $1000 rent seems good to me, about $200-$250 cash flow per month.  Based on the above info it seems like this would be a good deal?  Or should I look more into something like Annie found in the $50k-$60k range?