All Forum Posts by: Ritch Bonisa

We do something like this but we add rehab costs and reports to the equation, comps rents, ugly pictures no one else wants to show, etc.  We actually do it in Indianapolis and Cincinnati.  

@Ryan E. & @Parker G.  

I encourage some of the professionals on this site to sign up for the Morris Invest stuff, go through the process yourself and see what they are selling.  It should be of note that the concept being sold is coming from Morris Invest - marketing comes from Morris Invest.  I signed up, I've seen what they are doing.   

If you are an insider and you get the emails and see the videos, you work in the local market every day, and you also talk on a weekly basis to those who've "experienced the process" - it all makes you want to throw up.  My guys are out there in the field on a daily basis.  We've done drive bys on some of these properties. We know which ones have been rehabbed, which ones look vacant, etc. 

For months, I have been getting 1-2 investors per week calling me and asking if we can help sell their property.  After a few questions, checking some addresses, neighborhoods, etc.  In the end, I find out it was a Morris Invest client and connected with whatever property management company they happen to be pushing things to at the time.  Thus far, we have always said, "NO, sorry we can't help you."  I do feel bad that we can't help them. 

We have certain criteria for properties we will and will not deal with - this goes for sales and for rehabs.  So far it has been impossible to be involved with these properties and/or rehabs. Many of these bad situations are just a revolving door and honestly, I don't want to play a role in passing a bad situation on to someone else. 

It seems to me. There are 3 parts to this pipeline.  

• Supply - they need a big supplier of properties.  
• Marketing - attract attention of novices with money (create perception, create demand).  
• Point of sale - Local PM - handles final sale & management.  

Which parts can be changed to continue this model and which part can not be changed?  Where is the common denominator in this?

2 of these parts have been changed and/or altered recently.  They had also been changed before all of this ever came up.  There has been one constant in the process.  

Now, I'm just a dumb farm kid from Indiana, but it does seem to me the common denominator does not have to be market specific. 

Whence does the fish rot?

You don't know the rehab costs?  Time frames for rent ready?

It is ALWAYS ok to let a property go!  If you don't have enough info or if someone is pushing - let it go.  Willingness to let these things go - equals -lowering your risk. 

If you can afford to bet burned, then go for it.  If you can't, then it's ok if you miss out on the opportunity. 

Find a good PM.  Find the locations your PM recommends and make sure it's not just where the PM has an available property to sell you. Talk to whomever you may be using to insure your property.  Understand your policy.  Find a contractor, if you think you might be needing one.  Find independent sources other than your PM to get ideas on rents or comps.  Look for properties.  Get to understand the surrounding areas (those areas immediately surrounding your property).  Try to have a good idea on exit strategies, if you should need to sell.  

Find someone who invests using the same strategy you are and find out some of the issues they have encountered in the past.   

A lot of good things going on in Indianapolis - both flip and hold.  Some have said inventory is tight in Indy, but we've never had a problem finding flips or holds. I've been involved in some positive things in Cincinnati as well.  Haven't done anything in Kansas City, but I do know it's growing and its a great investment town.  In general, the Midwest seems like a good place to be. 

looks like a good one!

You just need a good property manager.  Also have to be careful about what you buy and what area you are in.  If you look in Indy, you will see that it is street by street.  Zip codes don't tell the full story. 

I buy and sell some myself.  I want cash.  I don't want my cash tied up for 60 days on conventional financing.  Don't want to wait that long for a close.  When you hear investors, wholesalers, etc. talk about cash deals - what they mean is - no seller financing & whatever you have to do to have the cash available in a few days.   Alot of times if you don't have cash, you can lose out to someone who does.  It's actually worth it so sell for a little less and be able to turn your cash. 

@Josh Sohar Great comment!  I totally agree with you on Indianapolis zip codes!

If you are from out of state and are a remote investor looking into Indianapolis - DO NOT purchase on zip code alone.  Too many people get burned, while 3 blocks away someone is hitting nice returns. 

Indianapolis is also changing and some of those old negatives are looking more positive.  Some of these neighborhoods are pulling themselves up, but not all of them.