All Forum Posts by: Ryan Peach

@Paul Schu you look me up when you get in the area. Always looking to connect with good people.

@Paul Schu I have moved to FL recently and no longer have property in Evansville. ERS is generally speaking a good PM. Evansville Homes for Rent is another good one. The PM situation isn’t great in Evansville, but those are probably your best bet.

@Ryan Pemberton talk with @Derrick Powell. I think he may have a good one.

Hey Andrew!

Shoot me info on the portfolios. I have an investor looking to grow rather quickly. I'll get it to him and see if we can get a deal done. Email me at [email protected]

I put one on back in the Fall/Winter. It's simple. Pick and date/time/place. That's pretty much it. We went to Fidel's in downtown Evansville. The event lasted roughly 2 hours. Everyone paid for their own drinks and food. It just gave local real estate minds an opportunity to get to know each other. I would be up for another one!

@Michael Glaspie I would love your help! I am a new realtor and do not have any connections to commercial brokers. Thank you so much for the help!

@Jake

@Jake S. thank you for the recommendation!

I thought I had my 6 property (9 unit) investment property package sold, but after 1 contract extension and no word from the buyer after that expired I am looking to move out of my network to sell my properties. They are all updated and currently rented properties in Evansville, Indiana generating $67,530 in yearly revenue. I would love the BP community's advice on where I should list the package and how best to attract the right kind of buyers. Thank you! 

@Andrew Bowlds I would definitely do it again. They way I look at it is I now have a property that has no hidden surprises because we had to build everything back into the unit. The two big keys on this deal, that are true for any deal really, are (1) buy it at the right price and (2) get an inspection or at least a quote from a GC on the rehab before buying. Knowing your numbers is key on any deal. I've guessed on properties before and paid the $12,000 price for it. I've learned to always expect my costs to be 30% higher than the GC quotes. It's just the nature of the business.... but still frustrates me every time! 

Honestly, I have never thought about looking for similar scenarios... until right now. Ha! But, yes, I will definitely look for those situations now. We did help a local nonprofit get a home donated to them because of fire damage. The ******* landlord was allowing a family to still live in it. They had no electric or heat for over a year! I digress.... Anyway, thank you for the great questions and the idea to look for such properties in the future. I already have one in mind! 

I did. I had used them on 2 previous deals.

I had my GC come in and quote me on all the expected costs. I wasn't aware how much interest the inspector would have. They had to inspect all HVAC, plumbing, and electrical before we could put up drywall and continue to move forward on the project. Caused some delay.

@Dalton Dellinger

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Evansville.

Purchase price: $95,000
Cash invested: $7,500

I purchased this property with another duplex owned by the same investment group for $95,000. The total loan amount including the $42,000 put into renovations is $137,000. I did come out of pocket $7500 as well bring all in to $144,500.

What made you interested in investing in this type of deal?

Despite one unit having fire damage and needing a full gut job, the other 3 units were rented or rent-ready. Because of the extensive damage to the one unit I was able to negotiate a good deal on both duplexes.

How did you find this deal and how did you negotiate it?

I had previously purchased a property for this investment group and knew they were looking to sell more. I stuck firm to my price because I knew the city was coming down hard on them because of the unit with fire damage. They were willing to add the additional duplex to the deal because of the situation they were in.

How did you finance this deal?

Construction loan that loaned 80% of the ARV. I did have to put 20% down, which the bank gave me notice of 1 week before closing. I had never had to bring money to closing before so that was a stressful week to say the least.

How did you add value to the deal?

Fixing the fire damaged unit up into a beautiful 2/1 added a good amount of value to that property. I also rented out the vacant unit in the other duplex so I have added over $1200/month having those two units rented.

What was the outcome?

Duplex #1 appraised for $75,000
Duplex #2 appraised for $90,000
Total Equity = $20,500

Duplex #1 rent = $1100
Duplex #2 rent = $1220

Lessons learned? Challenges?

I have to work harder on getting my construction numbers correct. I went over budget simply by not factoring in all of the needed expenses. We didn't really have unexpected expenses. I just didn't factor in everything I should have.

I also had a two week delay because my GC and HVAC guys were not communicating. They did not like working with one another so they stoped talking. I should have been more present and caught the issue sooner.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shane Wike is my General Contractor. He's rough around the edges, but is honest and hardworking. He's also a great communicator which is great on projects like these. Allie Peach (wife) and amazing designer. She designed the whole house, down to the cabinet hardware.