All Forum Posts by: Aaron Van Curen

Ken Min who is this investor you speak of? I am an investor in Indiana and would love to connect with him. I'm fairly new but maybe there is a way I can help him make his job more easy. Mayda Searfoss Since you are investing out of state, I would recommend connecting with investors in that area through BiggerPockets to potentially partner with, talk to an attorney about laws specific to that area, and like the other person said...form a good relationship with a PM because if you don't have a partner is the local area then the PM will be your boots on the ground. I would also definitely pick up ever book published through BP, they're amazing and have taught me so much.

You nailed it. They are currently earning 10% ROI per year according to the last 4 years. The rents are slightly below market but they have been steadily increasing them the past 4 years. I plan to do a complete rehab next summer of 2018 to make it a modern living space. I will be putting in roughly $75k in rehab on top of the $100k down payment (based on the listing price). This will allow me to raise rents by more than $100 per unit at the start of new leases. Potentially putting me at a NOI of $36k by applying the 50% for expenses. These are rough numbers of a vague analysis. I have more detailed spreadsheets of my plans. With the rough numbers I will have a cash-on-cash ROI of 20.5% not including appreciation, misc income, tax deductions or anything else. I hope I can force the appreciation by a minimum of $100k through the $75k worth of rehab which includes new kitchen, bathroom, flooring, light fixtures, roof, and siding, staining porches.

Thank you so much Oren K. That explanation really helped and now I'm going to place an offer this week!

@Gary Reynolds & @Thomas S. I am interested in the property because it has had only had one owner since it was built in 1999, self-managed. It has been greatly managed with zero vacancies since the building was finished in 2000 and they have shown records to prove it. They already have above a 60% occupancy rate for 2017-2018 leases that start in July and their leases are good and within my standards. The building seems to be in mint condition based on my observations, still need an inspector of course to make sure everything is up to date. It is 2 miles away from me and 2 miles away from Purdue University and it is within my budget for a 7-unit multifamily. It has also seen an appreciation average of 2-3% per year since 2008. I did not look at previous years.

PS. What are some typical criteria you would include as the contingency in an offer. Should I use their form? Or mine?

The property they have is slightly overpriced. How could I approach this situation when they have told me they are unmotivated to sell (listing has been on the market since Sept 2016) and unwilling to budge. They are also planning to retire soon but that could be next year or in 10 years. I asked if they are willing to do seller financing, they also said no to that. I am thinking this may good since this is my first property and I can talk them into a long due diligence period to assure everything on the property is up to code. Any advice?

Hello everyone! I have a question on the whole process of closing on commercial real estate and any special laws or conditions that may apply in Indiana. I am looking at the 7 unit multifamily complex and was wondering how I should approach it. I have contacted the broker, toured the property, and want to make an offer. Could anyone be kind enough to give a quick list of things a REI should and people they should contact from the point finding a property and closing on it?

Thank You!!

Lee Smith hey Lee!! Thank you so much for the advice. Fortunately though I am in a good environment! I'm around Purdue and the property I'm about to buy hasn't had a single vacancy for 10 years because of the college students close by and water is the only utility I pay for. It's been wonderfully managed! I will definitely take those into consideration when I expand into a different market

I believe I'm fairly well rounded when knowing who to contact and when to contact but I would love to hear from the community. So the question pertains to a new REI who is about to buy his/her first deal. Who should he/she talk to before making an offer, during due diligence, before closing, and after closing? To clarify, who should be on the REI team!

@Luc Boiron You make some good points!! I've heard so many pros and cons to both vinyl and laminate that my decision may come down to my budget. I love the idea of adding bedrooms and trust me...I thought about doing so. However, there is no good way to do so with these layouts. There's either a fireplace, kitchen, or utility room in the way and adding additional rooms will more than likely exceed my budget considering I would have to reposition other things. I know there is a two person occupancy restriction per room so I may advertise a max of 4 occupancy if people would like to share a bedroom. I would then just tack on an extra occupant fee at a flat rate per month.