All Forum Posts by: Adrien C.

no, it's normal for banks to require 6 months seasoning to use the appraised value. Lima One (hard money) will allow you to pull out 120% of rehab/purchase between 3-6 months. Must be LLC owned. I have a connection there if needed. That's who i use for my BRRRs. They have 30 year fixed rate rental loans and rates aren't too crazy different from regular banks and you get your money 3 months faster. I start the process with them right after i hit the end of the second month knowing we're at 3 months by closing.

 My company has made millions wholesaling. Started in 2016 and did 70+ houses. From 2017-2019, we did over 100 a year. We also kept some as rentals and did a few flips in there so we understood what our buyers had to do. We aren't typical wholesalers. We closed on everything- maybe did 2-3 assignments a year. So it's possible. But like anything, it's a discipline. We paid for good education, good software, and worked out As off. I know dozens of people from masterminds I was members in making millions annually wholesaling. But that's the exception. I know dozens locally trying to do it and they completely suck. Like everything, it's about providing value. 

It's 45 days from the point they vacate AND provide a forwarding address. The count down doesn't start without the forwarding address. 

I send a certified letter with the breakdown of deductions from the deposit. Make sure you have plenty of pictures to justify the costs. 

happy to jump on a call and discuss the different areas @Orane Jacobs

That's tough to just name. Gary is one of those areas you need boots on the ground to drive the neighborhood. In general, the west side of broadway (president names) is better than the east side (state names) BUT both sides have junk streets. My rules are never buy next to a vacant house nor on a block with more than 2 vacants. I'd maybe look at other areas like Hammond, Lake Station, Hobart, and Merrillville. Prices are just a tad higher but with cheap money, the monthly payment wont be huge and you'll get higher rents and better tenants. 

https://realestate.recp.org/  - they offer the 90hr Indiana course. A lot of my agents use this site for their CE as well. 

If you have the experience- go schedule the test with CP and get licensed. Test isn’t that bad. Might need to get county license first. I don’t recall their process down there. It might delay things a few weeks but cheaper than hiring a contractor. Maybe find one to pull permit and GC the project but allow you to do the bulk of the work. Pay them basically a management fee. 

I’m a few days late to the conversation but have lots of experience with section 8 since we have a management company. 
For the most part, you’re going to see more section 8 tenants in lower class communities like Gary, EC, Hammond, Merrillville, Lake Station. I can count on one hand the number of people in the cities that you’ve mentioned asking if we accept section 8. Not saying you won’t find them but your tenant pool will be smaller in those areas. 
Here’s what I like about section 8. 1) you get paid every month and I prefer if they pay 100%. When tenants have to pay some, good luck. 2) the pool of landlords who accept section 8 is small so tenants struggle to find places. This is great because when you get a good one, they tend to stay. 

Here's what I don't like: they are acting like it's still March 2020 and Covid is destroying us. What I mean by that is they still have stupid Covid restrictions and half the staff is working from home. Good luck getting stuff done. I've been working with Gary housing authority since October to get a new tenant in and transfer a tenant who's owner switched management to us. They've asked for the same docs a dozen times. They'll go weeks without responding to emails. Don't bother calling as they use a 3rd party call center now. EC is a tad better and faster but you're still lucky if you can get the new tenant in within 30 days of accepting the lease. I called Hammond housing 3 times this week and left 3 messages. No call backs yet. 2) annual inspections- not really bad if your places are halfway decent. They cry about little stuff occasionally but it is what it is. 3) Rent amount. What they pay vs market is night and day different. The market is soft right now compared to this fall (probably because tenants are feeling the burn of this massive inflation) but the rents are still way off. We can get $1400 for a 3 bed slab home in Hammond from a market paying tenant. We got closer to 1500 this fall. A section 8 tenant placed in September by another management company asked for 1150 (still way low but that's a lazy company) and tenant was approved for $1054. That's easily $3600 a year short. In EC and Gary, it's not as big a difference but still $100-200 low. You can find the HUD files that show the max they pay per bedroom in a particular zip code. What they pay per tenant you won't know because it's based on what utilities are covered and their income and some formula.
Hope this was helpful. We’re in Griffith if you want to grab a drink and chat more about this. 

@Chris Brall  my bad- I assumed it was Hammond since you posted it in a Hammond forum. 

My suggestion is to pull a permit with a licensed contractor prior to doing any work. You're screwed now. Hammond isn't sympathetic to investors not playing by their rules and major work without permits is the top way to piss them off.