All Forum Posts by: Ritch Bonisa

@Scott Passman I'd be happy to send you a list - DM me if you would like some info.

@Anthony Parisi, @Stone Jin makes some great points.  If you are looking to be a remote investor, you need to first identify a market that can provide most of the things Stone Jin mentions.  Once you have an idea, look to make connections in that market.  Often times, there are many good markets, but you also need to have the ability to jump on a deal quickly.  In order to act quickly, you need to have a comfort level with who you are purchasing from or have someone to get eyes on the property who also understands the local market.  If you don't have these things in place you can get upside down fairly quickly.  

The midwest is typically good if you can find a market with business growth and growing population. But your options and target are only as good as your source of REAL and accurate info in that market. 

@Luis Alvarez  I'm very active in the market.  I can give you half a dozen.  LOL Chemical Bank would have been one.

@Uneeq Khan any cost you have that is associated with owning the property from the time of purchase to the time you sell it.  This actually includes the rehab.  I like to think of the rehab as a cost all it's own, and then identify the other costs I have to own or carry the property - and consider those as holding costs. 

@Uneeq Khan Estimating rehab costs before purchase. First you need someone to look at the property and provide an assessment. Maybe it's a contractor, a broker, a project manager, you just don't want it to be the seller. You want to have a source of independent comps, someone that can help you get an idea of ARV, rents, or an approximation of retail selling price. You need to understand what holding costs will be, any taxes, insurance, sales commissions. You would need someone with construction experience to get there and assess the property within 2-5 days and provide you with a report on likely costs. If you don't have much of the info that I've mentioned here, then you really are buying blind.

A good methodology is - find tight comps, understand rents. Establish a value that you want to reach. Understand the current state of the property and what needs to go into the rehab to reach the target goal. Add in holding costs. Work backwards from your target value, add all of these things in, then include ROI you need. This gives you the purchase price number that will allow your investment to work.

@Jaron Walling I've seen alot of wholesalers with inventory just sitting there lately.  I think your approach is right on.  Another issue with the higher prices has been that many properties are being sold on contract.  Sometimes this leads to astronomically high prices - if it doesn't sell at the high price point - the contract just expires, so the "seller" has ventured nothing and lost nothing. There are still great deals available in Indianapolis, but selling on contract and some of the turnkey stuff has become more difficult to make some deals work.  Rents are great right now!  I still really like this market.  Congrats!  Hope your offer is accepted!

I think it is very possible. There is always alot of talk about being able to find good contractors, or dependable contractors. I certainly think that is a large part of it. I also know from experience that being able to evaluate a property from afar is just as important. Getting good comps, understanding neighborhoods, and knowing any rehab costs BEFORE you purchase, can make or break your ROI.

Even if you have a good contractor - if you buy too high, or if there are unexpected or unforseen costs, it can put alot of pressure on budgets.  When budgets are squeezed too tight, it forces you to put alot of extreme pressure on the contractor.  This is another thing that can hurt your investment. 

The first step is making the right purchase. 

Get your costs and have it lined up BEFORE you make the purchase.  Only way to not lose your shirt. 

Great to try to do your best to be helpful!  I've touched a few of these, but overall have stayed away from it - and will continue to do so.  The thing to beware of is the large # of people taking advantage of those who've been hurt by this.  It's rampant and it's a huge negative.  Alot of greed, when all we have to do as investors and vendors is to stay focused on the long haul.  There is no get rich quick scheme that works. People need to stop being lazy and go to work everyday. Work on your business every day.  Lazy people have to cheat and steal. 

Work with your contractor and develop project phases.  Take your timeline, break it up into the phases.  Do your own reporting on progress once a week and have your contractor provide a report once a week.  Get off the ground TODAY, don't wait til the 65 day mark to start worrying about time.  Engage now. Have it on paper and everyone follow the same road map.