All Forum Posts by: Kevin Wyn

I have a property under contract that has a large barn with roughly 7600 of space and a 5000 sf mezzanine. There is a large overhead door that opens up to 18’ ceilings. The mezzanine and area under have 8’ ceilings. The building is not currently conditioned. This space is one of the buildings on the property

I am trying to figure out what the highest and best use would be for this. It is located in greenfield Indiana on the east side of Indianapolis.

@Spencer Cornelia Yes, both houses turned out gorgeous. My second house was under contract before it was even listed, but the combination of my GC disappearing and having to restart the permitting process for the carport in March right at the start of Corona lock downs dragged that out and eventually feel out of contract. All in all it ended up taking just over 2 months to get the plans approved because everything had to be done by email. Luckily my agent lined up another buyer right away. We even had to do a lease back to them while the carport situation was being finalized.

There is definitely some luck involved with every deal, but I think as investors we can create our own luck as well based on knowledge and experience.  The ability to see the major issues before you buy is key especially when buying dilapidated early 1900's homes. This was a learning experience that will fuel many success to come.

On the podcast you mentioned you were going to take a few months off. I am curious if that is actually what happened?

@Spencer Cornelia I just listened to your podcast episode two days ago and read through your 6 part series. It is crazy how similar my process has gone. I just closed today on the sale of the second house and have ended the nightmare!

Similar to you I was doing well in real estate, had 3 cashflowing properties as well as my primary home and then thought it would be a good idea to flip some early 1900's homes. I bought these two houses that were next door to each other with a partner using hard money (3pts, 13% interest, and 1% extension fee every 3 months after the initial 6 month term). The plan was to have the properties completed in 6 months make some money and be on our way to real estate riches.

Turns out a lot of the framing was rotten and we had to completely reframe the back of one of the houses. This along with a multitude of other issues ate through every bit of reserves we had before we made much of a dent in these rehabs. This lead to piecing together payments here and there and drastically slowed the construction process and major cost overruns. I even sold my townhouse rental  just like you sold your 4-plex to keep the process going. The first house sold after 15 months and the second was today after 20 months. All in all I will be loosing 10's of thousands.

This process killed all of my real estate momentum, but has ignited a drive to succeed. I learned so many lessons and the unfortunate thing is most of them are things I have heard or read before. We all hear great advice on the podcasts but until you go through the process it is hard to know what to do. After listening to @Brandon Turner and @davidgreene do the recap it is true that you sharing your story will save BP member millions of dollars. I know it would have helped me.

Now that I am out from under these two properties I am waiting on a HELOC on my primary to get approved I will be getting right back on the horse but with much smaller rehabs.

Below is the house that sold today.

Below is the link to the Central Indiana REIA Events page. They have gatherings throughout every month.

https://cireia.club/events-calendar

@Steve Morris we file jointly. I have W2 income and my wife is a stay at home mom. 

@Ashish Acharya and @Eamonn McElroy Thank you for the feedback. 

Also, I am located in Indianapolis and both of my rentals are as well. Not sure if that makes a difference

Hello everyone,

I am in the process of setting up a holding company for my two current rentals and any future rentals. My question, is there a benefit to having my spouse as a member on the holding company. This is then no longer a single member LLC and makes taxes a little more difficult. Any input would be appreciated.

Thanks,

PM and I can share who I have used.

Welcome to BP and to Indianapolis!