All Forum Posts by: Derek Gendig

@Jason Collier greetings from Indianapolis and welcome to BP!  It sounds like you may want to buy @Joanne Chang lunch and see if you can work together!  

@Patricia Mclean sounds like there could be some potential here. First and foremost, be sure the person you are speaking does in-fact own the home. Nothing worse than racking your brain and resources to put a deal together only to find out the person you are working with does not have equitable title. Once ownership interest is confirmed, assess the market. If you don't have the capability, contact a local realtor to see if they will prepare a CMA for you. While the agent prepares the CMA, research or find an expert to assess the home from an investment standpoint. You said the current resident has been living in the home for 5 years. Has rent increased at any rate along the way? Review the lease to see what the terms are. Who pays utilities? Maybe you can shave a couple dollars by having tenant pay utilities and increasing rent? It may not happen with this particular tenant but if they do not agree to terms, properly notify them per lease specifications that you will not be renewing. At that point you can implement the changes needed to make the home perform. Have you spoken with the current resident to see if they might be interested in a Land Contract or Lease to Own? Perhaps they will be willing to put some money down, pay a little bit more per month and eventually own the home? If they've been there for 5 years they may wish to purchase eventually.

@Nolan O. Greetings from Indianapolis. Congratulations on taking the necessary steps in leaving your 9-5 and jumping into the world of Real Estate! The most important thing you can do is educate, educate, educate! If I can help you in anyway from Indianapolis, please let me know. Regarding your 401k, you may want to look into a ROTH IRA. It may allow for you to get creative in your deals.

I am a licensed real estate broker in Indiana. I am a managing member of IPM Real Estate, a real estate brokerage in the state of Indiana, President of Indianapolis Property Management & Managing Member of Solaris Property Group, a licensed General Contracting Company in the state of Indiana.

We specialize in out of town / out of country property management.  Our proprietary systems and procedures allow you as the owner to remain in complete control and in the loop with all communications.

In most cases you should be able to find this information within your agreement with the management company as each company will be different.  As far as our office policy, we make all efforts to distribute by the 10th of each month.

@Pedro Oliva the most important thing is to remain within the boundaries of the law.  You may want to work with a local PM that has experience in such situations.  In order to evict, you do need to evict even if there is no lease in place, appropriate notice must be sent to the "tenant" and procedure must be followed.  Even after the eviction process is complete, you or whomever you hire to complete the eviction for you may need to utilize the services of a constable.  The constable service we use in Indianapolis not only shows up to remove any persons, they also photo document all remaining items and take them to a local storage unit.  It's tempting to just throw everything away because often times it appears as trash, but do yourself the favor and let it go to storage.  The tenant will then need to communicate with the constable and storage service providers to get there stuff and you will not be responsible for that part of it.  

Best of luck!  Don't get discouraged and take it one step at a time.  There is a fine line between a mistake and a criminal act in being a landlord.  

@Jason Smith have you looked into TopProducer?  If not, you may want to check out some of the capabilities of the software.  It pairs really well with cellphone functions as well.

Purchase Price $45,500

Gross Monthly Rent $700

Monthly Property Tax  $89.53

Monthly Insurance $59.33

Vacancy $35.00

Maintenance $35.00

Management $70.00

CAP Rate 10.84%

Total Return on Investment 12.84%

*Assumptions: 

• Real Estate Appreciation 2%
• Vacancy Rate 5%
• Management Fee 10%
• Maintenance Percentage 5%

Thank you @Brent Coombs & @Amie Lamb for you assistance.  I must have waited too long because I do not see the Edit or Update buttons.  

Anyhow, I appreciate the information for future posts.  Thanks!

I've recently made a post in a forum and would like make a couple changes to the post.  Do you know how this is done?