All Forum Posts by: Adrien C.

Good houses in A/B areas will go for upwards of 90% market value. So if the market tanks over the next 15-18 months, you're screwed. I saw 15-18 months because they have 12 months to redeem. After that, you have to get a court date, get the lien reviewed and approved by the judge, and get the tax deed from the county. If you're new and don't have connections, that's an extra 3-8 months easily. 

@Alain Perez-Majul An attorney spoke at my monthly investor group regarding this. The case law in Indiana is vague. It basically states a land contract goes from an eviction to foreclosure when the occupant has substantial equity. That's typical statue crap. Instead of a black and white % or something, it's in the courts hands to decide. Is substantial based on agreed price and the subsequent pay down. Is it based on the property improving due to repairs and market conditions? The attorney reviewed some of the view cased and it seemed like 8-10% equity was where the occupant had enough to force the foreclosure. 

I prefer the mortgage route because it's not in my company name and the new owner can deal with the city issues if any.

Just come to Indiana and do the rehab. My parents are in Maine and the covid restriction are stupid. We're nearly open in Indiana and you'll enjoy normal life again. 

First step is to figure your SOW. This is putting a lot of trust into your PM to get you the info (pictures and their knowledge of the area) you need to decide what needs to be done. From there, get quotes from 2-3 contractors. 

What part of Indiana is the property in?

Just google the SEC and your state's opinions on general solicitations for raising private funds. It's pretty black and white. With our a PPM and the proper exemptions, it's not something you can do and the consequences are stupid. I know plenty of people who were busted for posting on their personal Facebook pages that they had a deal and needed money. 

This is a horrible idea unless you have a properly registered security with the proper exemptions in place for you to solicitate for funds. 

@Aaron Signer based on that law you found- I'd show the tenant the settlement statement to show you didn't get it and they can get it from the previous owner. He's the one responsible. At the end of the day, it does make it hard on you to keep any back for damages they may have caused. 

 Lets connect- NW Indiana has been a very profitable rental market for me and I'd be happy to guide you in the right direction regarding the different areas. 

Yes- always have security deposits transferred on the settlement statement. This insures you get it and gives you a paper trail when the tenants magically increase the security deposit. Even if the management company is the same, transfer it on the settlement statement because of the paper trail and there's no guarantee the management company will credit you. I'd also encourage investors buying occupied properties to have the seller and current tenant complete an estoppel letter. This puts in writing the rent amount, SD amount, who owns what appliances, who's paying what utilities and anything else you find helpful to know.  

@Matt Wells The fact that there's a cap % alone shouldn't scare you from investing in Indiana. It's actually nice because you can predict what your taxes could be at some point and run your numbers from there. It's valuable info to know because if you're buying an owner occ property at 1%, you better double your taxes when running your numbers. Saying that, it may take 1-2 tax cycles for the county to adjust from the owner occ status to non and a cycle in Indiana is 1 year. Indiana is also different from other states in that a new sale does not reset the assessed value that determines the tax amount. I've sold properties for $200K that are still assessed at $65K and the county can only bump that up to 10% each year based on what my tax attorney has told me. 

What you say and what piece isn't as important as consistency. Don't have a brain aneurism trying to find the best piece. Just send the mail every 4-6 weeks and don't look back. I alternate between PC and letter. I found a local mail house that can do my letters are the same cost as my postcards so I'd look into that in your area too.