All Forum Posts by: Jack Gibson

@Miki S. I like what everyone had to say. My first question would be, after all the analyzing and education you have done, what are the parameters you have set that you will accept for an investment ROI? A lot of it comes down to the math and the numbers, if you have arrived at certain guidelines of deals you will accept, then search until you find deals that fall within those parameters (make sure that you won't have a lot of unplanned additional rehab or fixes after you purchase, that was my big mistake on one of my first ones), and then if the deal hits those numbers, pull the trigger! (and make sure to leave yourself plenty of cash to cover any mistakes).

@Matthew Schroeder always great to hear positive things in Indy - also recently Trump made a deal with a company that has 1100 employees in Indy to prevent them from moving to Mexico.  can't remember the company name?  

Michelle here are my thoughts - looking at your concerns

1)  Capital gains of 28k could be taken care of with a 1031 exchange, or depending on your tax bracket and the amount of deductions you can take could wipe out a lot of that

3)  I think we all should be, it's been a hot sellers market and how much longer can it last?

4)  I think this one seals the deal, if your cash position is low, definitely not a good spot to be in, take that $20k cash after taxes and bank it.  check out the book "Demographic cliff" by Harvey Dent, he explains clearly why cash is king in the next 5 years

The times in my life where I got into trouble were when I over invested and left myself with a small cash position - then life seems to happen.  Just my opinion - I'm sure others may differ!

@Richard Anderson yes primarily on the East side, I also have west side properties, in any case, Property Management is absolutely key to this working for you, I think you're hearing the rumblings about duplexes not working in Indy because their PM is not so great.  

@Justin Young sure thing send me a PM and we'all connect

@Aaron Cullen 4 duplexes is a great start!  For sure happy to share, PM me we can chat

hey @Anthony T. great questions and congrats on starting in REI at a young age. That will pay off bigtime down the road! For your questions, I am by no means an expert but I do own quite a bit of property. A couple thoughts: 1) that depends on whether you want cash flow or appreciation, I am investing for only cash flow right now so I can create a backup high source of passive income. I may speculate later in my REI career, but right now I go for at least a 13 CAP rate, will be higher on multi-family, but tough to get too much higher on Singles. 2) If the numbers work, I'll go for singles up to as many units as I can. 3) I prefer on the ground experience in the city I invest in 4) I'm only really in 1 market, so don't have much on that one 5) not sure if you have to be accredited, typically yes on syndication 6) I follow Grant Cardone who owns 350 mil in multi-family, and he says he does all his deals with a notebook, I typically just map it out with a pen and paper and keep it simple. Good luck with your investing!!

@Antonio Scerra I think there are so many variables of what makes an investment good, but overall, I own a lot of property and I would say with a CAP of 27 he's doing very well. A lot of investors will accept an 8 CAP, personally I prefer to be at 13 minimum. Also, depends on if you're going for appreciation, if the play is for appreciation then some investors will accept a 0 CAP or even negative CAP on the monthly cash flow in order to make a much bigger hit on the equity when they sell. All in all, definitely depends on the investor what their parameters are, and if they are going for cash flow or capital gains.

@Richard Anderson I personally own over 100 units in Indy, almost all duplexes, and they are performing extremely well for me. I think a lot of it highly depends on the Property management team that you get - mine has 20 years experience and manages over 500 properties, and understands C class tenants very well. For example, when they don't pay their rent, you can't always just send them a letter and expect that to do the trick. Someone on the team needs to knock on their door. Multi-family is more transient in nature then singles, naturally a family will settle into their own home and not want to leave, so you will more than likely see a little more vacancy in multi's but then you're also getting 2 rents vs. 1. I think best plan is to get a mix, I'm muchheavier on duplexes but also working on building my SFR portfolio there as well.

@Laura H. I used my local credit union, united federal, and they have a great program - they refinanced 80% on appraised value, and I didn't own them for more than 6 months.  They only do loans for those that live in their coverage area. I'd start with your local banks and work from there, commercial lending seems hard for some to find for out of state, in state seems like it's easier to find.  Good luck!