All Forum Posts by: John Taylor

@Josh Durham I am with you.  I am no longer looking to invest within the City Limits of Peoria.  The city is becoming more and more difficult to deal with and they are trying to have investors pay for their incompetence and inability to balance a budget.  However the surrounding areas, East Peoria, Pekin, Morton, Metamora, Dunlap etc are strong rental markets but also harder to find good deals.

@Tyler Kress be careful and do your research on the person you are partnering with.  Get references of people they worked with in the past.  It sounds like a great opportunity and if it's legit would be a great way to get into it.  With that being I would contact @Jesse Mitchell and send him the address.  I also have several rentals in Peoria and the surrounding areas.  A house for $20k is probably not in a great area and will have headaches.  The fact that the potential partner is offering to manage this property for 5% seems a bit below market to me.  Any good managers in this area are closer to the 10% range especially for a more than likely higher problem type of property.  I notice some responses say stay away from Peoria due to the Caterpillar relocation.   That is no doubt a problem and a worry to many, however the rental market is strong here.  You should not be investing for appreciation anyway.  If you want to speculate you might as well invest in the stock market.  Invest for cash flow.  Especially in the Peoria where appreciation is at or below the national average annually.  My advice is to do your homework and be 100% certain of who you are partnering with.  Good luck.

Thanks @ Todd Dexheimer, @Oleg Shalumov, and @Chase Louderback for the comments.  Sorry for not being more specific on the numbers I was trying to keep it high level.  I guess my thought now is that the $20k difference in the grand scheme isn't really that big of a spread across 10+ years I plan to hold this property.  With that being said you all gave me great ideas that I wasn't really thinking about. I may try to negotiate some of your ideas to ease the pain of paying the asking. Thank you!

I have a seller that has offered to seller finance a 6 unit apartment. I offered $180k and cash flow is at the low end of where I like it. Seller wants $200k. At $200k it drops the cash flow by $100 per month. Since it’s zero down and seller financed should I just pay the higher price and lock in this deal?

Thanks Jorjio!  You’re probably right about that.  With that being said I think I may have found a bank that gets real estate.

Hey BP! I need some help. I have been working with a local bank trying to do some creative financing on a 21 unit property. The problem is that most banks in my area have no idea about creative financing. I feel like this bank is just stringing me along and I am eventually just going to get the "sorry we can't help you" answer. The seller is willing to owner finance 20-30% of the deal. If there are any lenders out there that would like to take a look at the numbers and see if they can help me please send me a message. I feel if I don't reach out to other options now I am just going to be wasting more time. Thanks!

Thanks Andrew.

Hey BP!  I need some help.  I have been working with a local bank trying to do some creative financing on a 21 unit property.  The problem is that most banks in my area have no idea about creative financing.  I feel like this bank is just stringing me along and I am eventually just going to get the "sorry we can't help you" answer.  The seller is willing to owner finance 20-30% of the deal.  If there are any lenders out there that would like to take a look at the numbers and see if they can help me please send me a message.  I feel if I don't reach out to other options now I am just going to be wasting more time.  Thanks!

Mike-I have used Legal Zoom in the past to set up an entity and did not choose the additional services mainly because we already had an accountant and an attorney and just needed a shell entity set up. I would just make sure you are choosing the correct type of LLC for your company. Also make sure that you are aware of all the state filings you may need. I can't remember if Legal Zoom handles those filings or not.

Welcome to BP Jeremy!  I've been an investor in Peoria for several years now.  The rental market is good.  I started off much like you.  Get good systems in place and make sure your processes are solid and you should be fine.  The ease will continue if you make sure you get the right tenants.