All Forum Posts by: Richard Bonisa

Have to kinda say  - I warned about the difficulties here.  Dont slant me for saying that.  I wont take it seriously.  My message is this- save your money for now, let someone else "hold" that property for now. 

I'm seeing crazy pricing to unload total junk in Indianapolis. IN. Also seeing really high prices - same thing total junk. 

I know a lot of good people who are on the front lines in Indy - some rehab, work for small outfits, others working directly for high profile type operations, etc.Hey. If you work or depend on some of these - just check what the governor of Indiana is saying.  Many work for "providers" and as an employee or 1099 - if you are working for these outfits and you make less than 75k - then dont risk it.  Those who make the big bucks, well let them take the risks. There are many making big money who crap on those who do the real work in real estate investing. Dont take the risk for them.  This will bounce back in 12 to 18 months, then we can all move ourselves forward. 

Anything purchased will likely be a hold with no tenant for some time.  Watch this stuff take place and transpire.  In Indianapolis, people who rent are generally in a certain income bracket.  Like I said above, let's just pause, do what we can do for damage control.  Let sellers do the holding, be wary of purchases. Do you want to be holding an intenbanted property now, something that needs rehab, or a 1/2 completed flip job or new build?  I'm interested in perspectives - and NOT from lenders or vendors.  They need transactions, dump inventory, cash coming in  stuff like that. I'm interested in real investors thought processes at this time.  No time for selling.

I'm in Indianapolis and we've been devastated by this. People I've talked to have ground everything to a halt. Some of the hot communities are restricting business and travel. This is serious business. There were rehabs, property purchases in progress, even down to things like investors investing capital into hard money lending companies, who might struggle to get a return, or even investments back. We have serious situations on the table here. Can your PM collect rent? Do you want to get a loan? Are their people working? What about subs or General Contractors? Can it all be depended upon? If your rehab is active, even a new build, or just an interior paint job - what is going on? Is your investment moving forward, sitting still? Can your HML or conventional lender collect, take property back? Will you be made whole? Will your renter use stimulus $ to pay you?

These are the questions that currently have no answers.  

My opinion, in the current situation, how can you make your vendor, contracted service people, or workers - do what you need?  Should you?

What are other markets doing?  What is going on out there?  I would like to know. 

A lot of unanswered scenarios now. 

What is everyone doing?  What are expectations?  Is anyone moving forward.  I'd like to know!!!

Oh you cant prove that.  No way, but the work can stop as the clock continues to tick.  That was my main concern for all of us. 

Does anyone have answers for example: a rehab or a PM going on site and contracting this disease?  Would there be liability for property owner?  Project management companies, general contractors, city inspectors, or any service provider? Many of the working types who perform the basic tasks - these types dont have health care insurance.  Now, this is just my opinion, so I dont know.  I've certainly talked with some "workers" and "owners" who can talk in a very letigious way.  Like I said, just an opinion.  I talked with a PM yesterday who also plays the lead on rehabs and there were concerns.  How is this thought process affecting others?  If a GC had crews that contracted the virus and then had to quarantine, what would happen on the rehab? 

I'm not at all shocked about possible distress for commercial.  Commercial SF, rental, whatever - a lot of these "big time" investors are leveraged to the hilt.  Many successful people arent going to come out publicly and say they've made huge mistakes in the last few years.  I know some big time operations, service providers, and strictly investors that have bitten off waaay more than they can chew in the last several years.  Egos are large to be successful in our industry,  conversley, egos can be very slow to admit shortcomings and mistakes.  Prudent strategy would say to be cautious in my opinion. 

I'm in Indianapolis and have background in rehab, flipping, rental investing, BRRRR, & new build construction. Also I've invested in the past and am a licensed broker. What I say here should not be construed as broker advice. Just an experienced investor in Indianapolis. My opinion: I would take a pause. I wouldn't purchase, sign a contract, start a rehab, enter into a new construction or new build agreement, or get a hard money loan HML right now in Indy. I would do additional due diligence on general contractors or vendors, property purchases, etc. Just makes sense to me to take a pause. Just my opinion, but many in Indy arent even leaving the house, let alone providing services. Do what you choose, I would just be careful. I wouldn't put down a chunk of money for anything. That is just my opinion as an individual watching this market and talking with local participants. Only opinion. We cannot predict where this will go.

I'd contact Harvey Levin.

Mike is making a lot of sense here.  I live here in Indy and my advice would be to talk to someone like him.  You dont have to buy, or even buy in, just have the conversation. 

I dont know if the year built is always the issue. Especially in a market like Indianapolis. .  You have code to consider, last year rehabbed / code. Many local players are very much keyed into these fundamentals, but for sure many will sell you, sign you up for a rehab and then move on.  I've seen it too many times. Shoot me a message, I'd be happy to relay the neighborhoods that I think are producing.  

You might also look up some of the TK providers - Jeff Schecter, Mike D'Arrigo.  See what they say.  Remember, they are involved in rehab and rental all the time. Like daily.   Also, Harvey Levin is good to talk to in Indy.  I'm sure he'd be happy to spend 10 min. on the phone.  I'd just beware of some of the more independent rehab outfits. They are making money at every turn on OOS people. Not convinced they are too worried about 6 months down the road or long term returns, or how you refi, especially if they are lending or have a separate entity that lends. maybe just more concerned with their own short term gains.  Hey, that's just my opinion, ya know.