All Forum Posts by: Stuart Tollison

Hello BP! Any recommendations on real estate lawyers in the Indianapolis area? I've considered Hocker Law but want to make sure I do some due diligence and check out a couple before making a choice. Any suggestions would be greatly appreciated!

Just came across this thread and love it! Not sure if I will be able to make the Jan 23rd meetup on short notice, but posting in here so it will be easy to follow for details on the next one.

Looking forward to attending at some point in the near future!

Hello BP!

I'm a fairly new investor, currently in the search of my third deal. I have identified a property that will be sold at Sheriff's auction on 4/29/19. The property is located in Mooresville, IN. Great location in town, walking distance to shops and the High School. The mortgage judgement on this property is $64,6148.84. I had an agent run comps and we believe the value to be in the $120k - $140k range. With some rehab, we think this property could have an ARV of $160k+.

I'm afraid to go the Hard money lender route due to the timing of auction transactions, but would be willing to structure a loan in the same manner (down pmt, points, interest, etc) or give up equity. Sales are at 2pm and you have to present cashiers check by 4pm so it makes it tough without having the full amount in cash.

Would be willing to share full details with interested individuals.

Ideas are welcome as well! Please reach out to me if interested!

Hello BP,

I am an investor from Indianapolis, IN. I just recently bought my first live in flip project and have already put quite a bit of work into it. About $40k total so far. As the work begins to slow, I am eager to move on to the next deal. However, because of student loan debt., my debt to income ratio is pretty much maxed out. This is just according to one lender.

Would it be possible that other lenders would still provide financing?

What are some other ways to acquire financing with a high debt to income ratio? Are hard money lenders an option?

Please let me know your thoughts!

Hello BP!

I am from the Indianapolis area and looking for a CPA that specializes in Real Estate or LLC's. I am needing to complete Form 1065 and Schedule K-1's and hoping some of you may have some recommendations.

I have read in some previous forum posts that finding someone out of state may actually be beneficial and that it's more important to find someone who specializes in this area.

Please let me hear your thoughts and recommendations!  

@Braden Mosley I wouldn't say it's impossible to land your first deal with no money down, but it's going to be difficult.  The advice I've been given is that it's possible but it will need to be a GREAT deal. If you decide to go this route, I recommend contacting a Private lender or hard money lender and see what they typically look for. However, Even most private investors want you to have some skin in the game. 

If you go the FHA route, I highly recommend a 203k rehab loan. I'm currently in the process of my first live-in flip using a 203k and will have equity in the property right off the bat. You can view the details of this first deal on my profile. It's not the best deal on paper right now, but with appreciation due to the high growth area, I should still end up with a pretty nice ROI. Plus, I'm learning a ton throughout this process!

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $80,000
Cash invested: $36,000

Currently 3 days from closing on my first live-in flip. Located in the historic Bates-Hendricks neighborhood.

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

Wanted to start with flips for a quicker ROI due to close relationships with contractors. Plan is to start with flips but ultimately want to move to multifamily rentals.

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

Deal was found on the MLS and negotiated through an agent.

How did you finance this deal?

Financed through an FHA 203k rehab loan.

How did you add value to the deal?

$35,000 in initial rehab through 203k loan. Unfortunately, most of the rehab costs have gone to structural updates. (Completely new roof, replacing floor joists and seal plates in basement, all new flooring throughout main level) Will continue to add value updates such as new counters, bathroom updates, new fixtures, etc.

What was the outcome?

$80k purchase price. $36k in initial rehab. So all in right now at $116,000 (not including closing costs). Property just appraised for $123,000 with no true value adds. Probably not a great deal to the experienced investor, but I'm learning a lot throughout this process. With another $20k in rehab over the next two years, we're projecting an ARV between $180,000 - $200,000 based on current comps.

Lessons learned? Challenges?

Try to avoid structural rehab and be cautious with "Sold as-is" properties. The property looked good structurally at first glance, but after inspections, realized the house would need more work to bring it up to code than we initially thought. Decided to continue with the deal for a few reasons: Still has value, very high growth area, and LEARNING EXPERIENCE.