All Forum Posts by: Derek Guyer

Why don't you give some more information for everyone? What are you hoping to buy the property for?

The end can make a big difference on the means you use to get there.

If you fill us in on what you are wanting a little bit more, maybe someone can help.

Cash flow real estate is done for the purpose of 1. Financial freedom and 2. Freedom of time. If you are budgeting in the fees of a property manager from the beginning, then you are prepared for the costs and able to experience the freedom.

Our investors don't want the late night phone calls and the hassles of tenants and so we have worked hard to develop a relationship with a property manager who is solid and dependable. This allows for both the freedom financially and in their time.

Even if this cuts your cash flow, you have the time and freedom to work on the next property and the next, etc.

Let your money work for you. That's real investing. Dealing with tenants seems more like insanity.

Email us if you would like. We'd be more than happy to help in any way.

Metropolitan Indianapolis has 3 of the top 50 fastest growing counties in the country in a recent statistic I found. With the recent signing of the Colts to stay in the city, the Pacers, being the number one convention city in the US and having a mayor who is a real estate investor all weighs strongly on us being a great place to put your money if you are an investor.

Our growth has been plagued with bad investors/brokers, who have consistently focused so much on profits, that fraud has become the major reason for an average of 1,000 new bankruptcy's and 1,000 new foreclosures PER MONTH here in Indy average. That's insane. Because of the consistent abuse, the FBI has set up headquarters in downtown.

But, it is also a buyers market for those who are willing to wait. This is a cash flow heavy area.

If you are looking for appreciation, it's slow in Indy. We are growing at only an average of 4% per year for the past 5 years and are 19% undervalued, per Smart Money magazine. But, for all of our shortcomings, there is a ton of money for the patient, cash flow centered investors.

That's why we're here.

Speaking for Indy and in agreement with the other two, the midwest is incredible right now.

You could get quite a bit more here in Indy for $80k-$100k than you probably could anywhere on either coast. The cash flow possibilities are quite amazing and endless.

After debt service, property management, property repair fees and vacancy loss, you should be able to cash flow at least $400/month.

That's fine.

hillbillywilly,

Many of our investors here are using their home equity lines to help them purchase properties currently and there are several routes you could take.

If you would like to discuss different directions in which you could go, I would be more than happy to help in any way possible. Email me whenever you get a free moment and I will take some time to discuss different options with you.

You can call as well if you would like at 317-753-7158.

Derek

You'll get no argument from me on that, ProHabber. I thought about clarifying that when I wrote it.

Cash makes motivated sellers feel warm and fuzzy and for that reason alone, it is a great way to move a deal quickly. However, I 100% believe in leverage and it's power.

Good thoughts!

Renee,

Great questions. Cash offers are much stronger when you are working with motivated sellers and banks. My experience is that when they know you are going to close quickly, they will respond faster and you are more likely to get things moved quickly. Having that equity is an awesome tool and I would use that to your advantage. You can refinance the property afterwards and pull your money back out and use it again.

If the sellers motivation isn't super strong, but the deal is still good, I would go after the mortgages as ProHabber suggested. This will save two sets of closing costs, but if they are motivated, you will save much more by working that price down significantly.

Make sure the city you are investing in is solid for rentals. If you can't buy low enough, pay the debt service, a property manager, figure in vacancy loss and repair fees, and still make a solid amount of cash flow for yourself, then don't waste the time with the property.

I think leverage is the key to great cash flow in real estate and highly suggest 30 year mortgages.

If you have more questions, you can always email at [email protected].

Good luck!

bsodders05,

Email me at [email protected] and I will send you a copy of the formula we use.

Maybe that will help.

Good questions for an attorney, but I will share what my attorneys had me do.

We set up an LLC and every property that is purchased is then put into the businesses name by Quitclaiming the deed into the business's name. Setting up the business is the only "costly" part of this and it can still be done fairly cheaply. Switching the properties deeds into the business is simple and can be done quickly and cheaply.

I would, however, talk with a lawyer.