All Forum Posts by: Chris Heeren

Would you ever have any interest in the Beloit/Janesville market? I'm putting together a investor packages with off market deals, local property management teams and bank lending options for non local investors.

Too bad you don't live in Rock County. I would have a never ending supply of work for you to do and also could hook up you with a fixer upper duplex within the next 2 weeks.

@Bryan Caprioli  I have much fewer apartment buildings. I did have a 24 Unit and 36 Unit this last year but never ended up doing anything with those 2. I mainly mail to 4 units and less. (Sometime a larger one sneaks in by accident.

@Adam Ramsey You can always send me more detailed information to my email address. Looks like I can list it here but I believe it's in my profile.  I plan to start my first mailings of the year in mid February. 

What types of property are you looking for? SFH/Duplex, Price vs Rents? I will soon have off market leads in most areas of both cities.

The main key to leveraging properties is exactly what Pete is saying. I always try to borrow 100% of the capital for my projects however, that doesn't mean my mortgage is 100% of the ARV. If you aren't able to either buy your way into 20% equity or pay for it, I would not recommend doing seller financing on more than 1 or 2 properties at 100% leverage. That is just asking for an accident to happen.

I didn't say your property was a bad deal as far as cash flow goes, almost anything can cash flow in Beloit! It looks like it was purchased for $42K which is at the very top end for houses in that specific area. I would honestly only value it at about $35K which means after your down payment you are close to 100% financed. (I'm surprised you got it to appraise out) If you have it rented out for $850 it does look like good cash flow numbers for now. It may be hard to find another qualified tenant to rent for that price in that area once these occupants move out. The good news is buy and hold is very forgiving on numbers. Even if you buy too high, it should work out in the long run. If you are looking to wholesale to others, you will need to get your numbers down at least 50% from that price.

Wholesaling is a Grey area in general. If you are sending out letters to buy houses for yourself, there isn't any need to have a license to submit an offer (if it's off market). 

If you have any deals you would like to wholesale, shoot me a message. I'm a cash buyer in that area ;)

*** After looking at the house you bought in Beloit. You may want to rethink wholesaling all together. In that area of town, investors are trying to be All In for about $25K-$30K after rehab is done. Typically buying them between $10K-$20K which means you would need to pick them up for less than that to make a profit. I wouldn't be willing to pay anymore than half of what you paid for it and that's if it was move in ready.

$60/mo

@Nicholas Hanson, Welcome to BP! - The Podcasts are a great way to start learning more about real estate at your stage. I especially liked Podcast#197 from the Madison area ;) 

I just picked up my Real Estate license last month and have bought about 70 rentals in Beloit over the last few years. I'm not currently looking to buy anything on the MLS so I may be able to help?

Congrats on finding BP and taking action! I hear that Podcast 197 was a pretty good one ;)