All Forum Posts by: Mitch Smith

Hey @trent jackson. I live in San Diego and I am having great success in Indianapolis. I have been doing buy and holds, flips and now doing new construction there. Honestly, I have no problem investing 2000 miles away. It was not always like this,

but my team is amazing now. We are building 3 bed /3 bath 2100 sq/ft homes for $106 a sq/ft. These are selling for anywhere between $170 and $180 a sq/ft. The Indiana Business Journal recently ran an article that projected the 5 surrounding counties around Marion county (Indianapolis) have a projected population growth of 30% to 40% over the next 30 years. The price points are great and there are still deals out there. Just my opinion, but I would at least give it a look. Just to add. I have worked with @Richard Bonisa in the past. He is a solid resource.

Good Luck.....

@Andrew Smith I am still having great success buying and rehabbing in Indianapolis. I know some are skeptical about cash flowing in this market, but there are still really great deals out there. We also just finished a new construction project that we built for $104 a sq/ft and sold for $190 a square foot.

@Justin Polston 

Hi Justin. I am curious to hear who would have referred Curtis Hansen. Its interesting. I have had a couple people contact me saying that they received that same referral from a local agent. Seems they have been working together to steal my money. Who knows how many others have been hit with the same issue. 

Hi Collin. I typically set up my draws from escrow directly to my contractor. Most title company’s will charge a fee for each draw. If you are working with a contractor that does not have a track record with you, use caution when deciding on the percentage to give out per draw. The tendency might be to save money on fees to do less draws. But trust me, if the contractor runs off with your money, you will be glad you paid him less upfront and paid for the extra draw fee. My title company will wire it directly to his account. Good Luck. Mitch

@Lane Kawaoka

Thank you Lane. 

I appreciate your input and up until a few years ago I would have agreed. However, The San Diego market is much more difficult to get involved in. Until I discovered out of state investing and worked hard to overcome some the obstacles that you mention, I really wasn't even able to work on my passive income. Buying rental properties at $450,000 if you are lucky, and getting a 6% return is just not worth it to me. I have established a great team of contractors, title, property managers and boots on the ground to help me run my business. And I must say, the credit goes to them. This is the first mishap that I have had and at it was because I broke one of my own rules.

I became emotionally attached to this property and wasn't patient enough to wait for a trusted member of my team to do the work.  

Although it was an expensive lesson, I learned a tremendous amount and I can guarantee that I will not make that mistake again. The price point of the market in Indianapolis at least allows me to be in the game.

@Matt Smith

Hey Matt. Welcome to BP forum. I am a San Diego native as well. As far as a live in flip, are you thinking of occupying one side of this property after the work is done? If so, I would looking into a 203K loan. Its an FHA product that allows you to roll your rehab costs into the loan. Its a great option that is available if you are occupying the home. You can use this loan for any property from 1 to 4 units.

@Fernando E.

hey Fernando. Id be happy to share with you. Feel free to PM or email me when convenient.

Thanks,

Mitch

@Nicholas Hamblen

Hello Nicholas,

Welcome to BP. Good job jumping out there with the first post. You will find a wealth of knowledge and experience in this forum. Good luck and let me know if I can help in any way.

@David Chance

Thanks David. Great idea. 

@Daniel F. Harb

Thanks Daniel. I appreciate the thoughts. It was an expensive lesson but definitely moving forward. I have been very fortunate to have good luck up until this point with my contractors. This will definitely help me be more aware. 

Thanks,

Mitch