All Forum Posts by: Marc Hoeppner

@Chad Acerboni

Consider this a list of the top companies I would recommend in general. They each have their own specialties and pros/cons, but I would consider them the top reliable companies, especially on a customer (landlord) service basis:

Evansville Homes For Rent

FC Tucker Property Management

Goebel Realty Property Management

Best of luck!

Hey @Greg Snell, I commented in another thread offering some local connections with PM companies. What you're experiencing isn't normal, so I would suggest getting things set straight with your current management company quickly or changing gears and hiring a new PM. There are several companies in Evansville that do a great job, so don't settle for sub-par performance.

There's a lot of good advice above, @Greg Snell.

I'm local here in Evansville and have plenty of experience with the rental market and local property management companies. Most of my units and my clients' vacancies are filling up within days. Shoot me a PM and I can try to give you some additional options for a solid PM company.

Investment Info:

Office Space commercial investment investment.

Purchase price: $299,000

Partnered with a local physician to purchase this property utilizing zero down financing. The partner will operate his practice out of the building and cover all operations costs for the property. We formed a new LLC and utilized the equity in one of my personal rental properties to post as collateral with the bank to obtain the loan. The physicians' practice is well-established and they are a very stable investment partner. Just one more way to leverage assets to buy more assets!

What made you interested in investing in this type of deal?

The partnership opportunity was presented for this specific building and I jumped on it.

How did you find this deal and how did you negotiate it?

The physician that we partnered with brought me the deal.

How did you finance this deal?

Leveraged equity in a paid-off rental property to post as collateral with the bank, so we had zero down financing via commercial loan.

How did you add value to the deal?

My understanding of the collateralization of a current asset allowed us to partner 50/50 with neither of us having money down in the deal.

What was the outcome?

Successful purchase in which the partner will be moving his practice and covering all costs of ownership.

Lessons learned? Challenges?

Traditional down payments are not always necessary. Equity is your portfolio can be a huge leverage point.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Local lender, Mike DeVoy, at Old National Bank was great to work with on the loan.

Thanks, @Casey McCoy!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $100,000
Cash invested: $20,000

Bought as a package deal with another duplex on the near north side of Evansville. This building was vacant at the time of closing. Previous owner had it rented for $450 & $550 a month per side. With minimal renovation, market rent for the units is $700 & $750 a month per side, so I'll have a $450 swing in monthly revenue right away.

What made you interested in investing in this type of deal?

I have been looking to add more small multifamily units to my portfolio, so it was great timing. The cashflow for this property combined with the other included in the package was nearly $1,500 per month, so the numbers worked out very well.

How did you find this deal and how did you negotiate it?

The seller approached me off-market and offered the deal to me. We negotiated the price on the other duplex, but I paid him his full asking price of $100,000 for this building.

How did you finance this deal?

I used a local bank and obtained a commercial real estate loan. I had to put 20% down.

How did you add value to the deal?

With minimal clean up, this building was already under market value based off of sales comparable as well as the cashflow numbers. By buying it off market, I avoided overpaying in the competitive open market on the MLS.

What was the outcome?

The bank appraised this building at $30,000 over purchase price, so I have immediate bonus equity in the deal.

Lessons learned? Challenges?

With current rents rising substantially in recent months/years, the old purchase price comparison for this type of property can't be used to determine if it's a good deal or not. It's absolutely necessary to look at each deal individually and determine if the numbers work or not.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Matt Whetstone at First Bank

Investment Info:

Single-family residence fix & flip investment in Evansville.

Purchase price: $10,000
Cash invested: $67,000
Sale price: $160,000

Complete gut to the studs, rebuilt all flooring structure and most interior walls, all new EVERYTHING!!

What made you interested in investing in this type of deal?

A client brought me the deal thinking the house needed torn down. Knowing it was in a great neighborhood and there was incredible upside, I was willing to take on the risk that the house may not be salvageable.

How did you find this deal and how did you negotiate it?

A client brought the deal to me. He thought he should PAY ME to take it from him, lol. I saw the upside and offered him $10,000 to take it off his hands.

How did you finance this deal?

Cash purchase from a self-directed IRA

How did you add value to the deal?

I brought the cash and the project management. I also handled the sale as the listing agent.

What was the outcome?

Final product was a fully-renovated home ready for a first-time buyer in a great neighborhood! The net profit was nearly $67,000 split 50/50 between me and my business partner.

Lessons learned? Challenges?

Always be the squeaky wheel when it comes to your contractors. Everyone is busy right now, but you HAVE to stay on top of the schedule if you want to finish a project on time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

None this time.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $36,000
Cash invested: $18,000
Sale price: $88,000

Light remodel including flooring, paint, and complete kitchen.

What made you interested in investing in this type of deal?

I actually listed this home for sale as an agent a year before it came on the market as a repo. I knew the ins and outs of the property, including the fact that the square footage in the REO listing was off by over 200 square feet. I knew this was a value-add opportunity from day one.

How did you find this deal and how did you negotiate it?

Auction.com

How did you finance this deal?

HELOC on my personal home

How did you add value to the deal?

I found the deal, brought the cash, and managed the subcontractors.

What was the outcome?

This was a successful fix & flip with a gross profit of around $30,000

Lessons learned? Challenges?

Working with a new contractor, I learned that I need to provide complete clarity on my designs. I gave too much control up without having worked with this guy before, and several aspects of the construction work went off course, including the kitchen design and color pallette.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Not on this project

Gabriel, what is the property?

Count me in as well 👍🏻