All Forum Posts by: Jack Gibson

@Jay Hinrichs I got you, I agree with you - C class for a lot of investors could be cash flow draining, my 11 unit C class purchase was very rough in Michigan. I cringe when I see $100,000 turnkeys for $1,000 rent with no repairs/maintenance or CapEx built into the projections ending in an 8 cap. They'll be lucky to not hit a -5 or 10 CAP. Fortunately, we have worked in C class for 20 years, have many long term clients that have cash flowed very nicely through CapEx, and the team simply understands the tenant base and how to make it cash flow nicely. Again, thanks for all you do for BP, and Happy Holidays!

@Jay Hinrichs I have a lot of respect for what you have done in real estate and your obvious care for other investors.  I got into this because I had a really bad experience with 2 other turnkeys, I owned B class property that didn't appreciate in 15 years, bought an 11 unit on my own and turned out to have way too many repairs needed, and my stocks have always been so volatile.  I finally found something that has cash flowed strongly and with none of the hassles I previously experienced.  So that positive experience, along with my own due diligence caused this operation to fall into my lap per se.    I too take very seriously making sure anyone who does business with me profits now and into the future - it's how I arrived at the top .25% in my nutrition business, and the same approach I'm taking with this.  I donated over $40,000 last year and this year to charity - I care about humanity, and making a difference.    I get that your experience in 2007 with C class wasn't good, I would expect that to be the case when what would normally be strong tenants could all qualify for a loan, leaving the worst of the worst in the tenant pool.  Our team has over 80 years experience in C class, and we do everything in house to protect our investors cash flow - acquisition, rehab, maintenance, capX - all of that is done in house to keep our investors costs down so they can maintain their profits, both short term, and long term.  I'll do a better job of watching self promotion in the forum, you are correct.    Thanks so much for all your hard work you put into BP and protecting investors from potentially unprofitable deals.      

@Jay Hinrichs thank you for your opinion, and congrats on your $100k + profit day this month.  It would be great if you would take some time and learn our business model, market, areas that we choose, our PM team, and all the ins and outs before publicly calling me out.    Many highly successful multi-millionaires have taken field trips to Indy, met with our team, looked at properties, and purchased a lot of property.  I am game for a conversation anytime.   Any respectable person gathers the facts and thoroughly examines the operation before making assumptions.  

sure thing @Gabe G., but they only do PM for those that invest with them - their PM is in place simply to make sure their investors have a passive, hassle free experience.  PM doesn't produce any profit for them so they don't take on outside investors.  

These 5 SFR's need no Rehab, have tenants in place, and are hitting 20% Gross Rent! Can be sold individually, or discounted for a package price. Mechanicals, roofs, electrical, plumbing were inspected and are in great condition. Comes with strong PM with over 600 properties under management, and a 1 year Home Warranty covering all major repair issues. For additional discount, if you have your own PM or would like to self-manage, we will drastically discount this package (PM is a service we provide to our investors only to make sure your rent checks hit your bank every month - we are more than happy to not have to manage them).

2268 Parker - $38k - $625/mo. - 19.7% Gross

1236 W. 35th - $38k - $625/mo. - 19.7% Gross 

1909 Union - $35k - $575/mo. - 19.7% Gross  

1418 Sugar Grove - $42k - $695/mo. - 20% Gross 

2326 LaSalle - $48k - $750/mo. - 18.75% Gross 

Total Monthly rents:  $3,275  Yearly:  $39,300

Total Package Price: $201,000. With purchase of all 5: $190,000. With own PM: $175,000: 22.3% Gross and approx. 15% CAP after Insurance: $2500 PM 10%: 3930 Taxes: $2500 Repairs and Vacancy 10%: $3930

For property pics and more details, feel free to PM, email:  [email protected] or call 269-369-9654

@David Brown sent over an email to you, thanks!

9 Duplex Package in Indianapolis, IN. - 1 Bed/1 Bath.  All brick, all wood floors - these are bulletproof for years to come.  All located within the same block.  There are 3 areas the city has designated to pour $88 million into, this is documented in the local media, and in the works. 5th and Oxford, Mapleton/fall creek, 16th & King. The Medford package is in the 16th & King area. This package has been family owned for many years, with long term tenants, and properties are in great shape.  Floor joists are better than my own house.  Tenant supplies own appliances, which cuts down on your monthly maintenance costs. Property Management is solid and in place, they have over 500 properties under management. You can give them a call to interview them if you'd like, I know PM is a very critical piece to making this cash flow and passive.   Package can be broken up and sold individually.  PM or call my cell:  269-369-9654. 

Purchase Price Finance:  $495,000  Discount for Cash Purchase:  $450,000

Rent:  $9,000/mo.  currently 16/18 units rented at $500/mo. (market rate is $550 per unit and will update with tenant turnover)

PM 10%: $900

Taxes:  $675

Insurance:  $477/mo. (based on current rate just acquired for buyer of 2 of the properties)

Vacancy 8%: $720  

Repairs/Maintenance 5%: $450  (package comes with 1 year Home Warranty, so yr. 1 this will be 0)

Total Monthly Expenses:  $3,222

Net Monthly Income:  $5,778 or $69,336 yr.

Net ROI w/finance: 14% Net ROI with 25% down & 5.5% financing: 31.7%

Net ROI w/cash: 15.4% (expected to be higher with lower maintenance costs and increase of rents upon tenant turnover)

@Levi Caron she'd have to come down $500,000 for me to take the deal.  and I really do mean $500k.  I honestly can't see how you can turn this into a great deal.  I'd love to hear from some others if they are seeing something that I'm not.   

@Tyler Jahnke I invest on the East and Northeast primarily (about 60 units there) and on the West side have about 20 units. I think Fountain Square, Bates Hendrix are great areas, the ROI's are not as strong in these B and A areas, could get more appreciation play here. I love cash flow, and like Cindy I love being a part of improving an area, so C class on the East side like Washington st., New York, Capital, Euclid (to name just a few) is where the ROI is going to be strongest, as long as you have great property management, and price to rent ratio is strong, you'll be in good shape in a lot of areas, there are no war zones in Indy.

@Levi Caron she would have to come down a LOT for me to take this deal.  These numbers aren't even close to the 1% rule, which I agree with Shawn after all the expenses I don't see how this could possibly cash flow even if she drops every property by $20-$30k.  Unless this is in a very high growth market and you are investing for capital gains?  If you're investing for cash flow stream of income now, there are much better deals to be found out there.  Just keep shopping and be careful!