All Forum Posts by: Ed Petras

Anyone have favorite lenders they are using and what kind of rates are to be expected for good credit risk borrowers?   Looking for suburban rental homes with decent schools $175-225K in and around Indianapolis.  Thx!

I recently came across a flip opportunity and it occurred to me that I can also wholesale the home.  Most of my interest in wholesaling comes from the constraints of my contractor, scheduling the work, carrying costs, and other opportunities to invest in.  I have the home under agreement and plan to close in about 3 weeks.  Does anyone have a boilerplate wholesale agreement they use?  I would of course have it reviewed by a local attorney to be sure it matches the requirements in Indiana.  Thanks in advance to any assistance.  The home is a 3/1.5 ranch in a great school system (Carmel) near Indianapolis.

Congratulations. You have been compensated with the gift of knowledge. Sounds like you are learning about the criteria you want to have on your next deal. Seek out private money for the rehab if the ARV makes sense for what you own.

@Dylan Mathias Funny how when you focus on something it tends to expand. Per my earlier comments here is an article that provides some Zillow data in changing prices: https://mtgpost.com/SocialNews?id=Scott_4088_1599_636703688446040001 Prices are dropping in certain market segments. Something to keep an eye on.

@Dylan Mathias No doubt we are headed for a shift. As you mentioned we are well in to a bull market that needs a correction. These cycles have been lengthening so it may be another year or two before we see the correction emerge. Politics and the Fed will certainly play a role. As rates and appreciation increase, affordability decreases. i think this makes a great case to invest in workforce housing. This group is aldeady being hit with rising healthcare costs and stagnant wages. As prices and rates increase, many will be perpetual renters. I my market, Inianapolis, low supply continues to be an issue, but off market deals can be found. Fix and flips are still selling quickly. I am watching DOM on thw coasts, as they are usually a bellwether for the rest of the country. If you see supply increasing, and days on the market increasing on the coasts, it may be time to evaluate your investing strategy. Myself, I see a move out of fix and flip to buy and hold. I am curious as to how others will adjust their investment strategy based on how the economy will cycle? I don’t expect the correction to be as kind or deep as the last. I also think the banks have learned many lessons from the last recession and will not flood the market with distressed assets.

@Chris Jensen. I am no longer working full time as an agent, but when I was a few years back I was closing 70-80 listings annually. I would typically contact the FSBO’s near my listings and try to get a look at them if I was in the area. I would let the sellers know that I took pride in knowing everything that was on the market and not just what was in the MLS, ASK if I came across a buyer that was not a fit for my listing, would they co-op with me? It was usually a yes. If the FSBO wasn’t selling I would check every few weeks and see how traffic was, Marketing etc. If I stayed in touch, many of the sellers would eventually ask me to list, so I liked FSBO’s and found them to be a good source of new listIngs. The upsell to going with an agent was easy since they had already agreed to pay half the commission if I brought a buyer.

@Andrew Neal. I have one class A in Carmel Indiana a sub market of Indianapolis. There are some value add properties that can be had but you must do a lot of digging to find them. The entry points in the northern Indy suburbs are reasonable compared to California. The market is still tight for any homes below $250K, but as the market begins to turn, I think there will be more opportunity for A’s. Lots of aging owners here that built in the 80’s and 90’s.