All Forum Posts by: Leo B.

@Jerry Padilla I sent you an email. Thank you. 

Hello fellow Indy investors,

I was talking with another local Indy investor and heard that Indianapolis is instituting a receivership program in 2016.  I think this is a positive move for the city and will help clean up some of the areas and subsequently increase values.  Any thoughts on the effects of this program in the Indy market?  Good or bad.

@Jerry Padilla

Hi Jerry, I sent you an email. 

Thanks,

Leo

$400K in the Peninsula is near impossible even in the condo market.  I would look into going East across one of the bridges (Newark/ Fremont/ Union City/ Hayward areas).  You'll get more for your money for either buy or rent at $3K/ mo.

It's an understatement when I say it's been a frustrating process with this company. I applied for their rehab LOC back in July, provided all the documents they requested in a timely manner, paid for an appraisal, and nothing. I was told the LOC was approved months ago and after multiple follow ups by phone and email, I finally received a response that I have to re-submit all my information all over again with no specific reason why. It's been a complete waste of time. I requested an appraisal refund a couple months ago and am still waiting for it.

Seeking small to mid size apartment complexes in Indy and Milwaukee. Let me know what you have. My email is [email protected]

Thanks,

Leo

It's obvious that the Bay Area market wasn't as red hot as it was 2-3 years ago.  There's a ceiling there somewhere and the slow down tells me we are close to it.  To me, I look at it from 2 basic perspectives; supply and demand, and value of the property based on the income it can generate.

If the income in the area is there to support the mortgages or rent and there is supply, there will be those willing to pay $900K or $4K in rent for a 2/1 SFH on the Peninsula as an example.

From an investor's perspective, I look at the income the property will generate.  I won't pay more for a home if it doesn't support the income or cash flow model I expect from it.  An owner occupant won't have the same view and therefore would be more willing to pay more for a home than an investor would.

Is there a slow down in the Bay Area market?  IMO, yes.  Is this the sign of a bubble that will burst in the short to mid term?  IMO, no.  I don't see a catalyst (something similar to the events of 2008-2010) that will lead to this.  I don't see the job market and hence, the healthy techie incomes disappearing anytime soon.  This is my crystal ball talking here...

PMs sent.  Thanks all!

@Ashley Pimsner Thanks for the response. The property is owned under an LLC and is non-owner occupied. My other challenge is the loan size. I will have about $50K into the home out of pocket and it should appraise for around $80K. With the rent it will bring in, the DCR should easily meet 1.3. Would you be able to PM me the commercial lending contacts you have? Thanks so much for your help!

@Mark Beekman Send me an email at [email protected] and I will forward you my contact.  FYI - this will only work if you purchased the property with all cash.

Thanks all for the replies.

This is an investment property.

Darren : I'm already working with Bob.  I was wondering if there were other portolio lenders out there as well.

Grant: Sent you a PM.