All Forum Posts by: Aaron Clements

I agree with @Justin Polston. Indianapolis is great and there's a lot of opportunity there, but definitely consider the surrounding counties. There's a lot of great school districts in the surrounding counties and that helps for longevity of good tenants in my experience. If you want to connect, I am a wholesaler in the Indy market and would be happy to connect you with some solid property managers and contractors.

All the best!

Aaron

@Monique O'Dell

The untethered soul

The millionaire real estate agent

E myth

For productivity:

Essentialism

Miracle morning

12 week year

Eat that frog

The one thing Gary Keller

Getting things done

Work the system Sam carpenter

All the best!

Aaron

@Jacob Merritt

Hey sir. I have read your post and quite a few replies. My two cents is as follows:

If you don't like chemistry then you probably shouldn't major in chemistry. As many have stated, switching majors to a business degree will likely be the most beneficial to you overall as you will learn the innerworkings of business and garner skills and knowledge that will help you in any path you choose for your career. Also, a lot of jobs, will want you to have some sort of degree (doesn't matter in what). Also a lot of states require some sort of degree in order to be a broker owner. I encourage everyone who's currently in college, or considering higher education to take business classes and at least earn an associate's or a minor in business.

I would also encourage you to get your RE license as an aid to an investing career. It can be extremely valuable as an investor.

Finally, I'd encourage you to build vast wealth of knowledge in personal development. Happiness is a state of mind. Figure out how to be happy and focus on the positive as well as surround yourself with positive, successful individuals and learn what they're doing. Do what they do. Read what they read. You have a solid resource here in BP if you utilize it correctly, but get connected in your local market as well.

Books I'd recommend reading asap:

Rich Dad Poor Dad (don't buy their REI courses though. Just read the books)

The E-myth

The untethered soul

The millionaire real estate agent

All the best!

Aaron

Does anyone in the Indy market have any recommendations for private money lenders? My team is looking to shift from a more wholesale focused strategy to a more flip/buy/hold strategy, but would like to avoid the points and crazy interest that usually comes with HML. Please message me with recommendations.

All the best!

Aaron

Thanks @Kerry Noble Jr  I would definitely be interested in that as I have been wanting to expand my knowledge base in the note arena for sure.  Please forward the info when you find it.

All the best!

Aaron

Hey @Tim Swain! Welcome to the REI Adventure!

As a wholesaler here in Indy, I think it's great that you want to get started and I encourage MFH for "House Hacking" to start. What neighborhoods are you considering? How are you sourcing your deals? Who are you networking with in Indy?

How much are you looking to spend on your first MFH and what scale of rehab are you comfortable taking on? Are you planning on living in one side/unit of the MFH and renting out the others? Are you planning on financing the project with Traditional financing? FHA/VA? Hard Money? Rich Uncle?..haha I have a colleague who specializes in the 203K loans process if you are wanting to go that route.

Please bear in mind that while yes, MFH can produce more bang for the proverbial cash flow buck because there are more units per property, they also have higher maintenance considerations because they will have more HVAC units, more toilets, more appliances, etc. Then there is also the considerations of making sure the properties have separately metered utilities so you can pass that responsibility onto the tenants, etc.

I know that is a lot of questions. Hope they give you some things to consider.  If you would like to talk more, please feel free to send me a message.

All the best!

Aaron

How extensive is the rehab?

What is the anticipated timeline for the project from start to finish?  

Did you hire a GC that will be hiring out the subs or are you working with independent contractors for HVAC, Plumbing, Electrical, etc.? 

How active and hands on are you wanting the project manager to be on the job site?

All the best!

Aaron

Welcome @Jennsey Fidelis

I would recommend house hacking if you can find a duplex/triplex, but seeing as that is sounding like that might be harder to come by in your area, I would recommend a few other alternatives:

Buy a 3 or 4 bedroom house in a really good school district.  This will encourage your renters when the time comes to stay longer as they will want to keep their kids in the good schools.

Buy a house with a casita or in-laws quarters that you can rent out on vacation rental sites. This is another way to house hack without having a duplex/triplex. 

I would encourage you to go more toward the 3/2 or 4/2 homes as they are going to have a better rental and resale value should you choose to sell (always consider multiple exit strategies before buying) and stay away from the smaller apartments.  Just my personal preference.

All the best in whatever direction you choose!

Aaron

That is an interesting way to approach it, but given the health state of the seller, you might want to seriously consider a life insurance policy on the project that covers the entirety of the loan if something were to happen to him.  Also, in that same line of thinking, you would want to have the discussion with them about what would happen to the proceeds if they were to expire while the deal is still in process.  Would the proceeds go to an heir? Multiple heirs? etc.

I would try to find someone in your network that can be the "elephant" to put up the down  payment and cover the rehab costs then negotiate seller financing (again considering where payments would go should anything happen to the seller) and pick it up that way.

If they are concerned about their health, they are likely concerned about medical expenses and therefore a down payment of 10K and then 700/mo for 100 months might be something that they are open to.

Just some thoughts.

All the best!

Aaron

@Michael B. No problem!  Notes are basically mortgages, paper investments. You buy the mortgage and the payer starts paying you instead of a traditional mortgage bank. Given your background, I think that might be a good strategy for you because you can dig in and analyze the numbers like you would in the market.  That is just a guess and comes with the HUGE asterisk that I do not fully understand Notes myself at present.  I hope to tackle that Knowledge base once I build up my base with flipping, wholesaling and buy/holds.

I highly recommend House hacking to start.  Do you have the option to work remote? I ask because 6 figures plus goes A LOT farther in midwest markets like Indianapolis and Cincinnati where there are cheap flights to NYC on a daily basis.  Just a thought.

Yes, Investing out of state can be risky, but so can investing in state. Either way, you need to build up a solid team and ding your due diligence.  The difference is, you can buy some pretty nice houses and multi family properties in Midwest markets for under $150K. Sometimes fr under $20K...haha Just all depends on what your end game is and what direction you ant to go.  Please feel free to shoot me a PM and we can exchange numbers and have a conversation about various strategies.

Anther big recommendation I would make to you is to make your commute work for you.  Listen to Investment and business building audiobooks and even Podcasts (BP has some decent ones) while you drive.  Turn your car into a Mobile University.  i do this all the time while I drive back and forth between cities. It has changed the way I perceive my drives and drastically helped me learn as I go.

All the best!

Aaron