All Forum Posts by: Zachary Inman

Not a lawyer, but you should be able to amend the OA and have both parties (you and your wife) sign off on it. 

Hi Dustin, I'm sorry to hear about the estimate! That's not a good feeling, and most people and REI have experienced it in one way or another.

I think you should try to combine both options 1 and 2. Get 1 or 2 more quotes from reputable GCs, but be fully willing to cut losses and offload the deal if the estimates are still nowhere close.

Taking a minor hit is much better than getting stuck in a money pit.

Hi Alicia,

Indianapolis usually has some multifamily homes in that price range. Are you looking for heavy or light value-add?

Hey Kevin,

It can be scary to start a new source of income! I think it would be a good idea to have some friends and family stay at your short-term rental and give you honest feedback so you can correct issues before listing it :)

Agent referrals. I have an inactive license, but I can refer business to active agents and collect 25% of the commission. 

Also, wholesaling!

In my experience, 58% is on the higher side of the spectrum for a midwest 12 unit. I would feel comfortable underwriting in the 40s, but you always have to adjust depending on the asset, the micro/macro market forces, and your team's track record. 

It depends on your risk tolerance. No one has a crystal ball, the expenses could end up being higher or lower than your projections because of unforeseeable elements.

@Sam Silverman Having the core market fundamentals in place is crucial for mitigating downside risk: diversified sectors, pop/rent growth, school systems, etc.

I'm interested to hear more about why you're investing in Class B and above assets in primary markets. There are more forced appreciation opportunities in secondary/tertiary markets with similar risk, fundamentals, and occupancies. 

Investor communication is a highly important, and often neglected, part of the GP/LP relationship. Glad to hear you are actively communicating with your partners. 

Hey @Sam Silverman,

Congratulations on the success in several different REI ventures. Being both an active and passive investor certainly gives you a unique vantage point.

How are you changing your investment strategy to adapt to post-covid macro forces?

This might not be what you're looking for, but here's some advice:

Find someone local. Your specific market has its own opportunities and pitfalls, and it's important to meet with someone who can walk you through that. Go to local real estate meetups, network, and find ways to add value to the people from who you want advice. Keep in mind most of the people you want to mentor won't have a ton of time, so make it worth their while. You have your own skillset; how can you leverage it to help others?

You aren't going to get the best advice from someone who's at arm's length and meets with you twice a year. You want to be in the trenches with an experienced operator that your respect. 

Hello from Indy, Cristin :)

Absolutely. With every new year, there are emerging opportunities — and risks. Compressing cap rates has tightened deal flow while rental demand continues to rise. The experienced, conservative operators are either on the sidelines or leveraging their experience and track record to make creative deals happen. 

How are you adapting, @Chris Mullinax?