All Forum Posts by: Ritch Bonisa

@Jacob Carlson  I think it is unlikely you can get a conventional loan.  Hard Money is a stretch on this one.  I've loaned before and I wouldn't touch this one.   

I've talked to some investors that are pursuing litigation on this.  You might consider doing that.  

Feel free to reach out if you think if you would like to discuss anything. 

@Eric James Well, there are alot of variables involved in determining ROI with both strategies. Area/neighborhood, city, holding costs, hard money vs. cash vs. new construct loan, length of time to sell.

I'm in Indianapolis and I see on average a 21-26% return on a larger flip.  New build  / new construction numbers are very similar.  Of course all of these situations are different and I tend to always look at risk factors first. 

In this discussion I think it is important to point out a few things.

• New construction brings fewer surprises vs a large flip.  Risk factors are more controllable. Costs are more of a fixed item. 

• Sometimes new builds can be completed faster than a large flip, just depends.  New builds can be done (and with high quality) in as little as 4 months. 

• Many times on a flip investors buy wholesale and have to use cash or hard money.  New builds can get new construction loans.  Those rates are lower than hard money. 

I'm not putting in an argument for one strategy over the other.  We do both. I would not attempt to do a new build in an unproven area.  It works best to find a vacant lot in a gentrified neighborhood.  Works even better when you can do 2 or more flips in the same general vicinity along with 2 or 3 new builds.  You impact your own comps and also have the ability to be very efficient on the construction side. 

Many investors are afraid to do new builds, but it can work very well in the right neighborhood.  

I would cut that additional $45 from Rentometer out.  I would also assume the repair cost is low, especially considering roof.  Without an address and pictures it is very difficult to go beyone that. 

@Eileen Viela PM me if you have questions.

Hi Eran,

We work with many contractors in the Indianpolis area and we oversee rehabs.  Feel free to message me, if you would like to know more about what we do and how we do it.

I've always known @Andy Rumple to bring very good stuff to the table.  I've also always known him to be 100% honest and upfront.  Andy is a great teacher and mentor to many out there.  This is why I really like the BP community.  It brings some very bright minds together with great perspectives.

I get to see alot of these severely distressed properties.  Many times we have to turn down projects on some of these, because the numbers just don't work.  Andy makes a great point that Indianapolis is not all about the burnt out, low end, or all board up situations.  The Morris/OP debacle can give a false impression of what Indianapolis has to offer. I'm involved in alot of buying and selling and there are many times when the property needs no rehab and has solid and reliable tenants in place.  There are also many townships and other areas in Central Indiana (all property classes).  I think its one of the things that makes inidnapolis unique.  

With some of the negative publicity Indy has had, I'm really glad to have people like @Jay Hinrichs and @Andy Rumple seeing the positives.  

For wholesalers starting out - I just pass along our philosophy on almost everything we do.  If it doesn't fit in your cookie jar - don't take it.  We don't get involved with every project that comes along.  I don't invest in everything that crosses my desk.  We don't buy every property that we come across. In the end, you have to put your name on it. Your risk and your reputation.  You can't build a buyers list that works FOR your business without having a good reputation.

@Colin Zhu Thanks for sharing!  Great info!  

@Aarti Bambha Be very careful about searching by zip codes in Indianapolis.  Indy is a very street by street, block by block affair.  Zip codes don't tell the story like they might in other cities. Feel free to reach out if you would like to discuss.

@Maria Dantas that was no commentary on your situation.  I've just run across some "deals" this morning that really bother me.

I'm totally sickened by the Morris / Oceanpointe situation, as many others are.  Anyone looking to find info on that should read some of those threads and key in on posts made by @Jay Hinrichs and @Mike D'Arrigo.  These guys are sharp, they saw it coming and have given much insight on the overall situation.