All Forum Posts by: Dave Olverson

Hi @Rodney Kuhl - just curious. What time horizon have you been looking at?

I invest in Indy, pretty much exclusively for cash flow, but I'm wondering if, in 30 years, it will appreciate (even if it won't in 5-10).

Thanks!

Great - Thanks all.

They mentioned that they could knock $700 off the origination fee if I went up to 5.125% - which seems like a bad deal for me over the long run.

If the rest seems about right, I'm willing to eat a few hundred bucks on the origination fee.

It felt as though they were trying to be honest with me when they mentioned that to make it work on their end, for such a small loan, they needed a little extra in the origination fee. If that's all it is, then I am fine with it.

Let me know if I am being dumb with that logic.

Thanks again!

Thanks @Joel A. - I will PM you right after this. That's good to know that these might come in lower. I do think they may be over estimating a bit.

@Jerry W. - Thanks as well. There is no wholesaler fee included - I have the GFE and while the origination fee is around $2,000, the other settlement services include:

• Appraisal and Appraiser Management Fees ($550)
• Credit Report ($200)
• Flood Certification ($5)
• Government recording charges ($62)
• Title Services ($818)
• Title Insurance ($265)
• Escrow Deposit for taxes/insurance ($400)
• Homeowner's Insurance ($600)

That really kicks it up. So I guess the origination fee really isn't out of whack, just on the very high side. Due to my relationship with this lender, I don't want to nickel and dime them. I would like to keep a good relationship, so if most of this is on pieces out of my control, then so be it.

Hi All,

I am looking at a deal currently on a $72,000 property, where the loan amount would be $57,600 (20%).

Everything looks good and the rate from the lender is 4.75%, which works well for me.

The closing costs are strangely high, though. Origination charges are $2,058 and the total (including origination) is $4965.10. This property is in Indianapolis.

Is this normal? It seems extremely high for me and I would just love to know what the lender is doing - if they are taking me to the cleaners or if the closing costs are all pretty standard and I won't be able to find a better deal elsewhere.

Also, if I SHOULD look elsewhere, how do I find a lender on my own?

Thanks so much!

I am still relatively new to investing in Indianapolis, but in terms of decent neighborhoods that still have deals, I like both the Pike Township and Lawrence Township.

Hey @Jerry W. - that's a good point. The biggest catch-22 though is that people who invest in turnkeys happen to not be quite as active on the forums since they deal with a very narrow subsection of real estate investing. I fully agree that you should listen to advice of people who have a lot of posts, but in this case, it might be difficult. I don't really have a solution, but just pointing that out.

To me it sounds like it's only a problem for landlords who aren't on the up and up. I feel as though I'd be happy to give my contact info as a landlord.

@Dawn Anastasi - oh definitely. I have already visited a few markets. I am actually in favor of the idea of geographic diversification. 

Milwaukee sounds like an amazing market. Prices like those are unbelievable (I could afford to bypass financing event). I would love to plan a trip out there to scout around at some point, but it will probably have to wait until 2015 as things are pretty crazy for me right now. If I do, @Dawn Anastasi - would you be willing to let me take you out for a cup of coffee/lunch and chat?