All Forum Posts by: Ryan Cheek

I have a very similar fee with the brokerage I am at. It is $749 which I try to have the client pay; however I usually split it with the client. I am not a huge fan of the fee, but it seems common where I am located: Indianapolis. The brokerage uses this to pay for lots of stuff office supplies, CRM, insurance, marketing, etc.. Not sure why this does not come out of the commission split. As long as you love where you are at I would try to look past this and keep in mind the long term picture of the brokerage. We have an in house builder here, so I have an endless supply of lots I am purchasing for them and selling these investment properties they build on the back end. 

Every case is different though hopefully this helps. 

Hi there!

Congrats on taking the leap into REI and setting ambitious goals—it's never too late to get started! It sounds like you're on the right track with your education, and I'd be happy to help.

Market research is crucial, especially when it comes to multifamily properties. Here are a few things that might help you as you start:

1. Understanding the Market Dynamics: Begin with understanding the supply and demand in your area. Look at population growth, job opportunities, and other economic factors that will drive rental demand. Platforms like Rentometer and Zillow can give you rent data to compare properties.
2. Networking Locally: Reach out to agents and local investors. They can give you invaluable on-the-ground insights that data may not capture. I specialize in BTR duplexes in Indianapolis, and I’ve found that local connections are invaluable when assessing markets, especially for long-term strategies.
3. Learn from Real Deals: As you move forward, it’s helpful to analyze real deals, even if you’re not ready to buy yet. Get used to underwriting properties to build confidence. You can find deals on platforms like LoopNet or CREXi.

If you're ever curious about exploring opportunities outside of your area, such as in the Indianapolis market, I'd be happy to share insights—it's a strong market for multifamily with great cash flow potential. Feel free to reach out if you'd like to chat more!

Best of luck on your journey! Ryan

Hey there,

It’s great to hear that you’re exploring the idea of becoming an investor in new single-family home construction! Your experience with having a home built by a local builder puts you in a good position to understand the process, and it's smart to ask these questions before diving in.

1. Profit Sharing (50/50 Split): Yes, a 50/50 profit-sharing arrangement is fairly common when the investor funds the entire project. In this scenario, the builder typically constructs the property at cost and provides transparency by sharing invoices and costs from subcontractors. This arrangement aligns the interests of both parties, as the builder is motivated to keep costs down and ensure a profitable outcome.
2. Builder's Overhead: The builder’s overhead, including staff salaries and administrative costs, can be a bit more complex. Some builders may include these costs in the construction budget, while others might factor it into their profit-sharing arrangement. It’s crucial to have a detailed discussion with the builder to clearly outline what’s included in the "cost" and what isn’t. This way, you can ensure that all parties are on the same page.
3. Alternative Arrangement: Another viable option is the one you mentioned—where the builder constructs the home at a discounted rate, and you, as the investor, handle the sale and retain all profits. This scenario might appeal to builders who prefer a guaranteed fee over the uncertainty of profit-sharing, and it gives you more control over the sales process. However, keep in mind that this arrangement may require more involvement from you, especially when it comes to marketing and selling the property.

If you're exploring specific markets, I’d recommend looking into areas with strong demand for new homes. In places like Indianapolis, for example, we’re seeing significant interest in build-to-rent (BTR) projects that offer consistent cash flow and long-term appreciation. I work with Neu Real Estate Group, where we specialize in new construction multi-family units, and we’d be happy to share insights if you’re interested.

Feel free to reach out if you have any more questions or if you'd like to discuss your investment strategy further. I'm here to help!

Best of luck, Ryan Cheek

Hey Ricardo,

Welcome to the community and congrats on starting your investment journey! It’s great that you’re considering the U.S. market, especially with your wife’s ties to Ohio.

With a budget of $150-200k, you have some solid options, especially in the Midwest where property prices can be more favorable compared to coastal markets. Dayton/Centerville could be a good starting point given your familiarity and existing connections there.

Here are a few steps to consider:

1. Explore Cash Purchases or Lower Financing Options: Given that you're considering not using financing, you could look for properties that fit within your budget for a cash purchase. However, there might be financing options available even without a U.S. income, particularly if you work with lenders who specialize in foreign nationals.
2. Leverage Local Knowledge: Since your wife has family in the area, tap into their local knowledge. They can help you understand the neighborhoods, the rental market, and any potential risks.
3. Focus on Neighborhoods with Growth Potential: Look for areas with good rental demand and potential for appreciation. Proximity to universities, hospitals, or growing businesses can be a good indicator of a strong rental market.
4. Understand U.S. Tax Implications: Make sure you're aware of the tax implications for foreign investors. Working with a CPA who understands both U.S. and international tax laws is crucial.
5. Property Management: Since you might be managing from afar, it’s essential to find a reliable property management company that can handle the day-to-day operations for you.

If you’re open to other markets, I’d also suggest exploring places like Indianapolis, where the market is investor-friendly with strong cash flow potential. I work with Neu Real Estate Group, specializing in build-to-rent multi-family properties that might align with what you’re looking for.

Feel free to reach out if you want to discuss further or need any additional insights. Happy to help!

Best of luck, Ryan Cheek

Hi there,

It sounds like you have some exciting opportunities ahead with your upcoming inheritance. Investing $135k in Upstate NY, particularly in Greene & Albany Counties, offers a range of possibilities depending on your goals and risk tolerance.

If you’re looking for steady cash flow and long-term growth, single-family rentals in strong rental markets might be a good fit. They can offer more predictable income and appreciation over time, especially in areas with growing demand.

On the other hand, creating a trailer park could be a more hands-on investment with potentially higher returns. Mobile home parks can provide consistent income, and if you manage it well, they could become a significant source of cash flow. However, this comes with more responsibilities, so it’s great that you’re open to being hands-on.

Given your interest in making this investment potentially your full-time job, I’d recommend starting with a clear plan. Look into local market trends, property management needs, and the level of involvement you’re comfortable with. I’m currently working in the Indianapolis market, where we specialize in new build duplexes that offer strong cash flow and long-term potential. While it’s not Upstate NY, if you’re ever curious about diversifying or want to compare strategies, I’d be happy to chat.

Best of luck with your decision, and feel free to reach out if you’d like to discuss further!

Best regards,
Ryan Cheek

Hi Ofir,

It's great to see your interest in investing in the U.S. market from Germany! I completely understand the challenges you're facing with finding reliable information. The U.S. market can indeed be complex, especially when considering international factors like taxation and financing.

While I'm not based in Germany, I do work with a number of out-of-state and international investors who are interested in the Indianapolis market, which offers strong returns and more approachable entry points compared to coastal U.S. cities. One of the most critical things to do when investing internationally is to build a solid local team that includes a tax advisor familiar with cross-border investments, a real estate agent who understands the market, and potentially a property management team if you’re considering rental properties.

If you're interested in learning more about the Indianapolis market or want to discuss your investment goals further, I’d be happy to share what I know and help guide you through the process.

Feel free to reach out if you have any specific questions or would like to set up a time to chat.

Best regards,
Ryan Cheek

 I requested to follow and can DM over my offering memorandum 

Hi there!

Hi there!

It's great to see another investor looking to expand in the Indianapolis market! You're right—some of the older multi-family properties in the metro area can be located in areas that might not meet your criteria for cash flow and stability.

If you're looking for areas close to Indianapolis but want to avoid some of the rougher neighborhoods, I'd recommend checking out the outskirts like Fishers, Carmel, Greenwood, and Zionsville. These areas offer a good balance between proximity to downtown and a more suburban feel, often with newer properties and stronger rental markets.

At Neu Real Estate Group, we specialize in new build duplexes designed specifically for investors like you. These properties are built with cash flow in mind and are located in areas that are both up-and-coming and stable. If you're interested, I'd love to chat more about how our new builds might align with your investment goals.

Feel free to reach out if you’d like more info or want to explore some specific opportunities!

Best,
Ryan Cheek
Indiana Licensed Real Estate Agent
Neu Real Estate Group

Hey there!

It’s great to hear about your experience across the different phases of residential development. At Neu Real Estate Group, we specialize in vertical development, particularly new build duplexes in the Indianapolis market. Our focus has been on creating high-quality, cash-flowing properties designed for investors looking for solid returns.

While we primarily concentrate on vertical development, we’ve also started exploring horizontal development in certain projects as we continue to expand our footprint. Our approach is investor-focused, ensuring that each build not only meets but exceeds market demands in terms of both quality and potential returns.

I'm curious—how have you found the transition to handling all three aspects of development? Any tips for managing the complexities that come with wearing all those hats?

Looking forward to connecting and exchanging insights!

Best regards,
Ryan Cheek
Indiana Licensed Real Estate Agent
Neu Real Estate Group