All Forum Posts by: John G.

Hi all, I'm purchasing my first property (Milwaukee) and asked my mortgage broker (Chemical Bank) about transit the deed. He said I can't do that. And that I'll need commercial lending. Is this something he HAS to say because I emailed him? And I can likely do it and he'll turn the other cheek? Or should I not have asked that? What do I do??? It's a $90 investment. Putting 20% down. Thanks!

@Phil DuChamp This is good news. I'm flying out there as well (on 8/12). Eager to see how they operate.

Hey @Ryan Yetter, how's the PARC property treated you? I'm going to visit them in August to help me decide.

@Katie Drab, you might want to chek out PARC Property Group in Indy. I'll plan to visit them in August to check out some properties they've rehabbed. I spoke with Brian Campbell a length and got a really good vibe from him and the company.

Thanks @Chris Clothier. I spoke with JWB (Josh, I think). They don't have sub-$50k properties, so I didn't pursue any further. He actually recommended you guys. So I was all set to place a call until I saw that Memphis had the highest vacancy rate in the US as of 11/2017. This is obviously a scary statistic. Can you speak on that?

@Chintan Parikh I think I've decided to stick with companies that do everything (acquisition, rehab, PM) in-house, versus farming out to locally. It's just difficult to know which is which until you speak with someone and ask the right questions.

I've commited to visit PARC in Indy this August to meet the team and visit some properties they're rehabbed.

HI @Katie Drab,

Have you made any moves with Roofstock (or any others?) I only just started looking at them.

I'm also talking with Larry Blessman at Morris Invest. Finding out that Oceanpointe owns the property and PM is apparently Match Made Realty. I only found that out on Zillow, where I also saw that rent is listed $25 less than Larry's one-sheet. He had no idea who Match Made Realty. It's a little disconcerting, to be honest. But getting into a $42k property with super low property taxes and a high ROI just seems so tempting.

Of course, after reading this thread, it's giving me pause.

HI @Katie Drab,

Have you made any moves with Roofstock (or any others?) I only just started looking at them.

I'm also talking with Larry Blessman at Morris Invest. Finding out that Oceanpointe owns the property and PM is apparently Match Made Realty. I only found that out on Zillow, where I also saw that rent is listed $25 less than Larry's one-sheet. He had no idea who Match Made Realty was. It's all a little disconcerting, to be honest. But getting into a $42k property with super low property taxes and a high ROI just seems so tempting.

Of course, after reading this thread, it's giving me pause.

Hi @Chintan Parikh,

Right now, I'm exactly where you are. Haven't pulled the trigger just yet, so take the below info with a grain of salt.

I've done some research and have decided to start in Indianapolis (PARC Property Group) and Jacksonville (Morris Invest). They are very different business models. MI focuses on sub $50k properties. Mostly SFHs. They do not PM the properties that they sell. In fact, I'm finding out now that they don't even own the properties, Oceanpointe Investments does. They then have a local PM company take over. I'm waiting to find out if I have a choice in the matter. Oh and their one-sheet says rent is $725, but I find on Zillow rent is listed at $700 - so that's disconcerting.

PARC on the other hand is more in the $60-$180k range (focus also on SFHs). Now, they rehab AND manage the properties that they sell (I prefer this model). MI's return though is a bit higher in general, but you're taking on the risk of a C/D class neighborhood vs PARC's B/C class. And likely less appreciation (MI). Like you, I want to build cashflow enough to quit my FT job!

There are many "turn-key" companies out there, but for most of them, you are essentially paying a finder's fee and definitely paying a premium. Of course, all the work is done for you (findinf a distressed property, dealing with contractors, placing a tenant etc), so for people who have a 9-5 and live nowhere these great rental markets, it's worth it.

You mentioned Roofstock, I've only just started looking into them. I'll probably schedule a call with them soon.

Hope to hear from others who've worked with them as well.

Good luck!

@Bill Goodland Just heard back, I should be able to get up to 75% of the appraised value not to exceed the purchase price if done in the first 6 months!

@David Faulkner By irrelevant, I meant that I've already decided that the risk of a property in a lower income neighborhood is one I'm willing to take for a slightly higher return. In other words, I just asking about numbers here. I have and will continue to do my due diligence as far other factors go.

@Bill Goodland I like that idea. Just shot an email to my mortgage broker. By the way, I'd already been pre-approved for financing the 40k property OR the two 70k properties.

@Account Closed I guess I'm putting way too much faith in PMCs placing tenants and minimizing vacancies. But, what I meant by risk was buying in a C-Class neighborhood versus a C+/B-Class.