All Forum Posts by: Julius Clark

Great post Anthony! 

Thank you for identifying the things that brought you to looking at Indy for investment from the out of state perspective. 

With the few months that I have been working in investment real estate here in Indy I have gathered that you can be right about the duplexes. There are some in rougher parts of town but there are plenty more options in other areas. They may stretch you $140k but there are opportunities here and there closer to Rural Street. SFH on the other hand will have more opportunities for you. There are plenty of homes in Indy below that price point to allow for $20h-$35k in work.

I would definitely come if today wasn't my birthday! Jessica, you should come to ours again next month. September 6th. I'm about to post the details.

Best of luck!

My brokerage is connected with multiple hard money lenders, and I know that some of our agents work with investors that frequently use hard money. I notice that those investors are the ones that are buying more frequently as well. I have not myself had any investors interested in hard money. So I was wondering, what are some of the pros and cons of hard money lending? When is it appropriate? And what are the best ways to learn more about it?

Thank you, 

Julius 

Would love to connect and see where my network can help out. Indy is a great city! I hope it treats you well. 

Depending on the location, I know that some units like this do well on apartments.com. I knew several people that found their housing that way while in undergrad. 

Great deal Tyler! 

I would definitely do something like this for my first deal. Not living completely for free, but with a house that needs maybe a little bit of work, this would be a great play for me. I would make sure to know of any seasoning periods with my loan and plan for a value add project of about that duration. At that point I would be ready to put a tenant in my place to cover the remaining mortgage expenses and move onto the next one!

I am working at a wholesaler brokerage and I do occasionally work with agents that have investor clients. I was just curious, is it common for agents to use wholesalers as a resource for their clients? Why or why not?

Today's Topic: BUYING REAL ESTATE WITH CASH

There are pros and cons of buying real estate with cash. Like most things in real estate, it depends. Before considering purchasing real estate with cash it is important to consider a couple of things:
- Your financial situation
- Your investment goals
- Your risk tolerance

We often use the phrase "cash is king", but we don't live with kings. Make sure that you elect the proper financing technique by considering the pros and cons.

PROS
- NO MORTGAGE PAYMENTS: This is the biggest advantage of buying a house with cash. You will not have to make monthly mortgage payments, which can save you a lot of money in the long run.
- NO INTEREST PAYMENTS: When you buy a house with cash, you will not have to pay any interest on the loan. This can save thousands of dollars over the life of the loan.
- FASTER CLOSING PROCESS: If is speed is important cash can greatly speed up the process by avoiding underwriting processes needed for other means of funding.

CONS
- LESS LIQUIDITY: When you buy a house with cash, you will have less liquidity than if you had taken out a mortgage. This means that you will have less money available to invest or spend on other things.
- MISSED MORTGAGE TAX DEDUCTIONS: Missed mortgage if you itemize your deductions on your taxes, you may miss out on mortgage interest deductions if you buy a house with cash.
- INVESTMENT RISK: Without typical underwriting processes it is important that buyers do their due diligence to ensure that they are making a good investment decision.

Undergoing such a transaction can be a daunting task. After you go through the process a few times it's just a matter of running the play again. Also make sure not to fall asleep at the wheel and miss a crucial step in the process. If you have never purchased a property with cash make sure to connect with individuals that can help you mitigate your exposure to risk.

Hey William,

Pretty broad question here. Anyway, I work with buyers for investment properties and there are certainly buyers. The numbers are very dependent on the location, exit strategy and purchasing method. Obviously there are other things that play a role but those have been the biggest things. Also how much work the property needs. Do you have any more specific questions I could help out with?

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