All Forum Posts by: Daniel Vaccaro

Hey BP,
I am a pretty new investor, 10 doors, and have started a new venture with 2 LP's. One of them, who owns 33%, is not a US citizen but is South African. 66% ownership is with myself and another American citizen. 
We are running into issues getting refinancing since most lenders want each partner to have a SSN, and a Credit Score. 
Any ideas on how to get around this? Or has anyone worked with Lenders who can handle a foreign partner?

This seems to be the only active Terre Haute thread. I would love to start partnering and coordinating our efforts here. I'm sure most folks in TH are looking to BRRRR. We could reduce our risk if we worked together and targeted specific blocks within the avenues. Go block by block and try to make the sections at least that we buy on desirable for renters.

My partner and I are eagerly awaiting our refi post current Reno project, but within a month or two should have access to enough capital to tackle 2 houses.

Thoughts?

@Matt Millington - All valid concerns. I see a few things working in TH's benefit for the future....

1. The casino AND the convention center going in speaks to more than just the jobs that those 2 additions will directly create, it speaks to the mentality of the folks directing the growth of the city. They are taking steps to put the city back on the map in meaningful ways with 2 key pieces of infrastructure that should serve as a catalyst for business growth. 

2. Increased attention from Real Estate Investors should create increased modern housing opportunities to attract an increasing number of desperate house hunters and digital remote workers looking for value in where they live. As properties in Indianapolis continue to spiral out of control TH is going to become a more and more attractive place to live. 

3. There are already some urban renewal projects underway specifically around the 12 points area. 

All that being said, I see this as a very stable market rather than a sexy one offering dramatic appreciation to investors outside of the artificial bubble building building. 

@Spencer Gray - Late reply here... 
My partner and I just purchased 3 multi families in TH (a quad and 2 duplex's). We have been seeing property values rise dramatically over the past couple of months, I think largely from people getting burned out on trying to compete in Indianapolis. 
Our first property in TH was a single family in a traditionally rougher part of town called "the avenues." Within a month of listing after rehab we placed excellent tenets at about 1.7% Rent/Price. We are just beginning our rehab now of the 3 houses and are both really optimistic about the refi value we can expect post rehab. 
Our concerns now lie with the tenets, I think the multi families you are going to find are going to have some tougher tenets in them, our 8 units are coming with 3 vacancies and 2 tenets that we may look to evict but hopefully that won't have to be the case. I think a lot of the properties are also going to have quite a bit of deferred maintenance. Again our 3 houses came with quite a bit. Obviously not all PM's are made equal, and the PM we are looking to use was quite frank with us in our need as buyers to rehab up to a level that will attract a higher quality tenet. 

Obviously as I am currently committed to 3 properties there I am bias, but I see nothing but good things for the future of Terre Haute. Between the Universities, incoming Casino and Convention Centers and current state of the housing market there are a lot to be optimistic about.

Shoot me a DM if you would like to connect. 

Thank you all so much for the input.  Update - Now the PM has gone radio silent. I want to get an inspector in there but the PM currently has access to all the keys. At this point can we get the police involved if the PM is holding the keys hostage and not responding to messages?

Hey everyone,

After picking up my first door, I decided to go big and try and take down 8 more doors in a single portfolio acquisition. The deal looks right, but we are running into some frustrating road blocks. 

I found the deal through a wholesaler, who has been representing the seller and graciously agreed to seller finance 15% of the deal. Recently I have been trying to line up a time to send my property inspector in to assess the property as I am investing out of state. My Inspector was unable to get in touch with anyone to set up a time for his visit, wholesaler included. 
Come to find out that the current Property Manager is demanding 3% of the sale price as a fee, before he will allow our inspector in to the properties. Apparently the seller has a clause included in his contract that the PM must be the sellers agent in the event that the seller wants to sell the home. 
Has anyone encountered this before? And does anyone know if that is even legal? The properties are in Indiana. 

I don't want to go through the PM simply because I don't want to lose the 15% of the deal the wholesaler was willing to finance for us. He has also done a lot of work to get this deal done and I wouldn't feel right about cutting him out in the 11th hour. 

Worst case scenario, the seller would be the one to eat the 3% fee the PM is charging right? 

Looking forward to hearing from this wonderful community, thanks for the help!

My partner and I just picked up our first house in Indiana, paid cash, and are currently reaching out to contractors now to get our first BRRRR under way. Really exciting, but also a little nerve wrecking that we may not be able to raise the value enough to cash out refi.

Details - Property purchased for 28,000, would currently rent for 450 a month however we would like to rehab it to begin collecting closer to 650. Thinking new floors, paint, we are adding a wall and a door to add a bedroom (currently listed as a 2 bed but one only has a curtain separating it from the main living space). Most of the house is stylistically outdated, but incredibly well maintained. Comps in the area valued anywhere from 30-58K. Having difficulty finding a contractor that is available before June/July. 

My questions are these:
Where have you found the biggest bang for your buck when it comes to adding value?
Anyone have experience with lenders getting a cash out refi for a home that is valued <50K (Worst case scenario)

Excited to actually be able to call myself an investor! Looking forward to growing with this incredible community!

Hey all, a little late to this chat but would love to connect with you folks. 
My partner and I just took a property under contract in the Avenues. Looking to bring some life back to it and continue investing around the 12 point area. This is our first deal, we are really excited to get started. Would love any recommendations you may have for general contractors and property managers in the area. 
The GC job would be small, adding a wall and a door to a bedroom. We may also look to have the flooring replaced or refinished. 

@Quintin Green:
You will need to close out any bank/credit accounts you opened for your LLC, and then because I am assuming you are the only person in your company, you can file online with the State of NJ here...
https://www.njportal.com/DOR/A...