All Forum Posts by: Steve Lehman
Steve Lehman has started 1 posts and replied 61 times.
Post: Open door capital scam???
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
Quote from @Russell Brazil:
Is Open Door Capital a scam? Absolutely not.
Is Brandon Turner truthful? Absolutely yes.
The reality is investing comes with risk, and yes part of that risk is you can lose your entire investment. Syndications are particularly risky, and thats why they offer such high returns. That high return is consummate with the risk being high. Because that risk is so high, and these syndications are not filing financial reports with the SEC, the government will only allow accredited investors to invest in them. ie, individuals the government believes are either sophisticated enough to understand the risk, or have the fiancial capability of losing the entirety of their investment.
What's happening to ODC is happening to numerous syndicators in this space the last 2 years. The reality is they only stress tested their underwriting for interest rates to rise 200 basis points, say handling 3% rise to 5%, but many of their debt service rose 600-800 basis points up to 9-11%. Throw in that most of them underwrote for rent growth to be 3-5%, but instead have had negative rent growth instead. Combine falling rents, with higher vacancies, and higher rates and it was a recipe for disaster.
And every syndicator really any choice but to underwrite that way. If they underwrote the deals more conservatively, then they would have had to pay substantially less for the properties. But others were willing to buy at the same prices they bought at, so acquiring them cheaper wasnt possible. Additionally they wouldnt have been able to raise investment capital...because who is throwing capital at an investment with promised 2% returns if the other guys are promising 18% returns? So in both cases, the market determined what they could pay, the market determined how they underwrote, and the market determined what promised return they had to offer. Unfortunately it panned out very poorly.
It's important for investors to understand their risk tolerance. Most dont consider that. An S&P 500 index fund, incredibly unlikely to ever go to zero. A US Treasury Bond, incredibly unlikely to go to zero. Low risk investments with low/average returns. But a syndication, very high risk and thus a much much greater probability of the investment going to zero.
LOL! Brandon Turner is truthful. He is nothing more than a marketer.
Explain this forum https://www.biggerpockets.com/forums/960/topics/1127261-anyo...
@Sam B. This is what we were talking about tonight.
Post: Recommended Agents in the Indianapolis Market
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
@Jared Fisher
I will strongly advise using @Lauren Perry. I have watched her grow her business since the beginning stages. She is well established and is recognized as one of the top investors and brokers here in the Indianapolis market.
Post: Orange St. Flip
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
@Nikki Lehman
Congratulation on the flip. That does not come often anymore in Bate Hendricks. A least not at that price point. Orange Street has always been one of the best streets to flip on.
Are in any business affiliation with Dustin Ruhl?
Post: Unresponsive Property Manager
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
@Jackie Liu
First and foremost the information that everyone has provided has been great.
You may want to contact @Nick Giulioni and myself. We both have experience in these types of issues and we are local to the Indy market. I am Realtor and I have access to everything you would need to move forward with filing complaints with the IN RE commission and the local board. I will provide you with names and websites. I can also find out everything about this person's license in less than 10 minutes. Other than just those things I would advise that you contact the IN attorney general office. They are really starting to crack down on these types of behaviors. DM me if you want the help or contact Nick.
Post: Why You Need a "Deal Killer" In Your Life as a New Investor
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
This was a very interesting read. I proudly call myself a 'deal killer,' and I say that with no hesitation. As a 3rd-party real estate consultant that has no skin in the game other than what I charge, I provide exactly what you've described—unbiased, no-nonsense, and straightforward advice. Over the years, I’ve witnessed both newbie and seasoned investors get misled by various players in the real estate game, from wholesalers to contractors, realtors, property managers. Turn-key operators, etc.
My reports don’t always ‘kill the deal,’ but they do shine a light on critical information investors may not be getting from their team. The funny thing though is while many new investors do not see the value of such services, seasoned investors often see the worth. After all, spending a few hundred dollars now is far better than risking hundreds of thousands later.
Post: Fix and Flip plan
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
@Derek Farmer
Derek - My friend Dave Short has a Dinner with Dave meeting about once a month here in Indy. It is all about flipping. Dave has been doing this for over 50 years. He shares his past, current, and future flips. He breaks down numbers and everything. There is no pitching of any programs, coaching, books, etc. If you want more info about his meetup DM me.
Post: Searching for a mentor
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
HI Alex,
There is local REIA event on Dec 5th called CIRIEA. Here is the website
If you can't make they have monthly meetups on the first Thursday. There are plenty of Vendors from wholesalers, lenders, insurance, title companies, contractors, etc. This is a good place to a least meet and intermingle with other new and seasoned local investors.
There is also another meetup on the same day hosted by a company called Roots Realty. This alos another great event to meet lcoal invetors. Here is a link for this one. https://www.eventbrite.com/e/december-real-estate-masterclas...
If you want to meet me I will be at the CIRIEA event. Just ask for the grumpy RE investor who enjoys kicking out squatters from houses.
Post: Inherited Home in Greenfield, Indianapolis
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
Quote from @Don Owens:
@Steve Lehman. Thank you for the response. The property is in Greenfield not Indianapolis. I asked another agent to look into the neighborhood convenance as well to see if they would be an issue with replating. I also just found out that the property is on well and septic, and the well is on one lot and the sceptic the other. So this might also complicate matters significantly as I would probably need to add both an additional well and an additional septic in order to truly split these into two separate properties. Still doing some digging, but if the neighborhood and city will allow it then will take the next step and see if the cost of these additional services would negate the value of splitting the property up or not.
One my friends just got done dealing with Greenfield and a multiple lot re-zoning and permits for new builds. He did emphasize that Greenfield is a small town where everyone know everyone and they are set in their ways. This is like a lot of small towns though. He did eventually have success.
I am going to DM you. I will get you the contact info of the people my friend used. They are local to Greenfield and it helped.
Post: Section 8 Indianapolis
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
I have heard this same thing from another investor recently. I told them to do the same thing you are doing just stash it away and wait. I also advised to continue to contact IHA and document all of the communications if there are any. At least it will show that someone put forth effort to return the money like you have been trying to do.
It really is to bad this has happend. The system seem to be doing a positive thing throughout the years. I really hope they get it straighten out for the sake of the landlords and tenants.
Post: Inherited Home in Greenfield, Indianapolis
- Real Estate Consultant
- Indianapolis
- Posts 64
- Votes 76
HI Don,
In case you have not been able to find anyone to help you yet. I am a local RE consultant and investor in Indy.
I have a question, is this property located in Greenfield or Indianapolis? These are 2 different cities.