All Forum Posts by: Ruchir Kaul

@Jeff S. @Eric Johnson

Thank you for the clarification, that makes a lot of sense, I have actually started the process of getting the LLC started, my lawyer is looking into what makes more sense whether to start one at my home state or at Indiana where I intend to purchase.

@Mike D'Arrigo @Daniel McNulty

Totally agree there - a lipstick job shouldn't really add a whole lot of value traditionally. In this particular case the purchase price is low (about 50K) and homes in similar conditions sold in the 85-100K range in the neighborhood. As far as repairs needed - mostly just paint and countertop replacement. 

To your points though the low rent seems odd - doing more research on that front, currently having issues contacting the tenant to have the GC visit to give me a better estimate to make sure we didnt miss anything. Definitely doing more due diligence on my end to make sure it makes sense!

@Mike D'Arrigo

Hey Mike, thanks for the feedback - so it will be varying from lender to lender it seems like, I'm still shopping around but that's what I'm seeing too. As for the rehab required, just based off the pictures sent over total rehab required does seem pretty light. But I am having a GC take a look at it later this week to verify. 

Hi Everyone,

I have a property I'm interested in Indianapolis but running into an issue with funding. This one is an off-market deal that is currently tenant occupied rented in a month to month lease. However the current rental rate is about 150-200 lower than the market rental value for the area. The plan is to purchase and raise rental prices gradually and come in to do the rehab once tenant leaves - estimating just about 10-15K in repairs - this should get top rent prices afterwards. This sort of falls into the category of a delayed BRRRR strategy.

I'm looking to get a bridge loan or private lending to fund the initial acquisition. However I was told that they are only able to lend to entities. Is this usually the case for this type of lending? Do I need an LLC formed usually prior to getting funding? I haven't done lending outside of conventional lending so this is all new territory to me! Any thoughts or feedback would be much appreciated!

@Erwin Perez

Welcome to BP! I'm also looking to BRRRR my first SFH out in Indy as well - looking to have one closed out before the end of June hopefully! Happy investing, goodluck!

@Mike D'Arrigo

Thanks Mike that's a great point - I'm definitely looking to take action now, hoping to close one out before the end of June

@Jason Malabute - would you not recommend going the HML route then? I do have the cash for purchase but I was looking to keep as much cash on hand in case a correction does happen

@Nick Giulioni

Thanks Nick, sending PM!

@Tchaka Owen @Nick Giulioni @Mike D'Arrigo

Thanks everyone, yeah that's what I've been hearing too, some are saying they are working since they are essential service while others aren't taking work due to the lockdown - seems to be a mixed bag, I'll keep looking, hoping to find someone soon!

Hi Everyone,

With Indy on lockdown, a lot of businesses are implementing a stay at home initiative, unless it's for essential business much like the rest of the country. I'm looking to do a BRRRR in Indianapolis but I'm wondering if I should hold off until the lockdown has been uplifted?

Reason I ask is the GC I currently use is no longer taking any new projects due to the COVID19 situation. Have you been seeing the same, are contractors still taking new work generally or are they not considered essential?

If so, I'd love some recommendations! Appreciate the help!

Thanks!

Hey @Kevin Paglia welcome to BP! From Vegas as well, looking to do my first two OOS BRRRRs this year, let me know if I can help in any way! Good luck!

@Caleb L.

Hey Caleb! Welcome aboard, also looking to invest in Indianapolis myself. Bit new to investing in Indy myself, hoping to close on my first one soon! Also reading the BRRRR book too, super informative stuff! Goodluck and let me know if I can help in any way