All Forum Posts by: Dan Johnson

Hi @Samantha Soto! Yes, Jynell is who I’ve sat with. Haven’t done any real heavy work with her yet but after sitting with her she is who I’ll be using going forward. 

Josh Compton that's true. I've seen other properties up there for far less, some SFR's. Just kinda got excited about getting in on a fourplex I guess. Down the line that will help consolidate management costs. Andy Rumple it is 3/4 occupied, so it's bringing in $1550 as it stands. Its about break-even at 3/4 full. Aaron Linden that's not a bad idea. And my credits in the upper 6's/low7's depending on which bureau you pull. Hadn't really thought about that because I've seen some fine print say not to do that with property..

@Brian Faulkner No, it's further north near Michigan and Rural.  

@Thomas S. I wish I could. He was pretty clear that he wasn't interested.  I figured I'd ask but I can't press it anymore.  Like your profile pic by the way haha

I have a tough situation, and could use some guidance from those more experienced in creatively financing deals: I'm very new to real estate and trying to get started out with creativity over capital. I got an offer accepted for $102K on a fourplex in Indianapolis, with gross rents of just over $2K, that comps around $110-115K. After reading The BiggerPockets little/no money down guide, I thought I was armed with enough information to begin getting the money together for this great deal. I have a little money, but not enough to put the 20-25% down on an investment property, and my income is not in Indiana so I can't owner-occupy the fourth unit for more favorable terms. I could if I had a job offer letter in Indy but I'm in school out of state until May and 3 of my courses are on-campus, so moving isn't an option just yet. That led me back to a commercial loan, but also financing my down payment. Unfortunately, even if I or my investment could pay for both debts the traditional lenders don't want to mess with it. B2R seems to be OK with a loan for the 20% down as long as there isn't a second lien holder, but they would have to source the funds and since those would be coming from my relative's IRA, they won't have been in the lender's bank account for the two months' seasoning. I even reached out to the proverbial "angel investor" and didn't have luck, as he is starting a business and needs his capital for his own venture. My property cashflows a few hundred dollars with very conservative and overcautious expense budgeting, even still cashflows assuming very unfavorable financing terms (100% LTV at 10% over 30 years). I have 1 week to get the proof of funds so that we can close on this deal, and I feel as though I'm hitting a wall. I don't think banks will touch 100% LTV, even if there's equity walking in, and I just don't know how to find trustworthy hard money. Even if I could get something temporary with interest only payments and refi out of it in a few years, I would be more than happy with that, but I guess I'm not sure who to trust with that and where to start. The other thing I've considered is trying to sell the option, but with only about 10% walk-in in equity I doubt I'd find someone to buy it. I'm not trapped in this deal and I still have a few contingencies, but I know it works well and I want to get off the sidelines and get in the game. Are there any strategies I haven't explored? Thanks for reading! Dan

@Jeff F.  Hey Jeff, thanks for your info! I've heard this is a great way to invest, and I'm honestly considering doing something to that effect. It seems like a great place to start, and generally quite forgiving for a rookie like myself.  The only doubts I have are about this strategy come from hearing that finding du/tri/4-plexes can be difficult for non-Indy natives.  Then again, i've read posts from people who own several and love them. Each obstacle can be another's opportunity in RE I suppose... Good to meet you, happy hunting!

Than

Mark Nolan thank you for the pointer! I just downloaded it and will be reading it asap.

Ronn Johnstone Hi Ronn, glad to meet you! Hopefully we both find success out there in INDY

@Ben Elliott thanks for the welcome! Good to meet you.

@Ritch Bonisa thank you for the offers, that's awesome. I've heard that good contractors are worth their weight in gold, I'd appreciate a suggestion! Can I find you through your website?

@Erin Donlan hi, and thank you, it's good to be here (on BP). I am excited to begin learning about this awesome area, seems like with all of the experience here I'll be the new kid on the block for a while!

@Andy Rumple thanks for the response! Wholesaling sounds challenging and rewarding and I'm sure you have a wide set of skills. My focus is buy and hold, but it seems like many hold investors wholesale to raise funds as well. 

@Brett Snodgrass thanks for the warm welcome! I actually am already signed up in both, they seem like excellent resources for networking and the most current applied knowledge in the area. Looking forward to diving right in!

Hey BP community,

My name is Dan, and I'm currently planning the move to Indianapolis this fall to begin my RE Investing career.  I'm getting my Marketing degree, and Indianapolis is full of opportunity for my 'trade,' AND my dream of creating permanent and substantial wealth and passive income through real estate. I found my way here by reading The Book of Rental Property Investing, and I am so excited to begin engaging in this community (and I'm looking forward to offering what I can as I go)!  Best of luck to everyone, happy to be here!

Dan