All Forum Posts by: Taylor Jennings

@Account Closed

Welcome to BiggerPockets! Good to see another Hamilton County resident here =)

"I really envy these 20-something year old people on here." I really envy those 40 somethings with $80k sitting around ha

There are plenty of ways to get started with your 15yr plan, but I would suggest you figure out what 2-3 areas of REI you would be interested knowing more about before jumping in. Finding out what you would be comfortable doing is crucial to the amount of worries you have with your money.

From what it sounds like you don't have the time to be very active?

There are several groups I would recommend you get involved with here locally to help educate you on your options.

One would be our BiggerPockets meetup group that gets together about once a month.

http://bit.ly/IndyREIMeetup

Yea, that's probably the thing to do @Loren Davy . If only I had more time to stop by these banks!

I should be able to pick a few of them to choose from.

I'm wondering if I should create an account with Chase or a local bank for my business.

I don't know the benefits from one to the other...

All I'm looking to do starting out is to hold the money I generate from REI to the account.

I would however want the bank to auto-deduct rent from my future tenants accounts in the future without paying an arm and a leg.

I'd love to hear how you feel about the two!?

Thanks.

Welcome to Hamilton County!

Be sure to join up for our local BiggerPockets meetup > http://bit.ly/003BPMeetup

We have a meetup this Saturday.

@Account Closed undefined I'm not sure what you mean... Here is the CMA, the previous house Listing, and the TAX records > http://bit.ly/1awBEQd

I kept one house which is way over the 120% of the houses sqft, but I thought it was a good example of a house that still sold for less than hers.

I agree with you on going back and negotiating a legitimate price if it comes down to it and I can't change her mind.

Update: I pulled the CMA and the house should be priced around $183k. There have been (9) houses to sell over the last 18/mo and the most expensive house 4bd/2.5ba/2453sq sold for $209k. Her house is 3bd/2ba/1809sqft. Average sold price was $182k.

The most expensive house sold at $117/sqft while the average was at $101/sqft.

So she is losing ~$30k as soon as she buys the house.... am I wrong?

@Jeff Owens Agreed.

@Joel Owens I've read a little bit about NNN after the podcast last week, but I'm not too familiar with it...

"I deal with older clients and they want EMOTIONAL piece of mind that their estate will help their children and grandchildren to a better life after they have passed."

... I'm Her child! She knows I won't have peace of mind with her decision on this. She is literally burning her money up.

and I agree with you,

@K. Marie Poe undefined

and @Marcia Maynard , but what @Michaela Graham says is true... This is an emotional purchase.

The person selling is her next door neighbor. She started telling me a story about this old lady and I cut her off after 5 seconds of this story and said, "Mom, I already know this is going to be bad deal because it's an emotional deal." before knowing the PP or Rent.

@David Beard My Mother has got to the point where she is itching to spend the money. She was suppose to wait for me to come across a wholesale property, but jumped right into this before consulting me. It had only been three weeks.

Turnkey would produce better returns than this house and I have a good relationship with a local company.

She could potentially get more, but this old lady has been there for awhile and is content paying $1200. My mom won't raise rent while living next door.

@Aaron Junck That is a great idea, but I'm not sure how long it would take to set that in motion. I'm not familiar with note buying so I wouldn't be able to guide her.

@Sam Leon You made me think a bit about this today... I don't know if there is a long term lease in place... I doubt it. What would stop the lady from moving out especially when they got $30k more than the list price should have been.

Haha enlightened and wanted to walk the earth. At her age that might be called dementia. KIDDING You're right though, there are a million reasons that could cause her to leave and that would mean my Mom would need to fix the place back up to rent it again at that $1200/mo price.

Thanks all for your responses!

@Jeff Owens

@Joel Owens

@Account Closed undefined

@Marcia Maynard

@Michaela G.

@David Beard

Hey BTW, BiggerPockets... Fix these @Joshua Dorkin @Brandon Turner

symbols! It's taken me 30m to get them to work and they causing havoc on Chrome and IE.

Please =) Thanks

@Joel Owens

@Account Closed undefined

My Mom is paying cash for the purchase. The neighborhood is really nice. Great schools and the house already has a tenant in it. The houses are selling within a week of being listed in the neighborhood.

She isn't exaggerating about the neighborhoods I'm in because it's how she perceives them. They are blue collar neighborhoods here in indy.

She is dating a man that owns 22 rentals and manages even more... She never asked him for his opinion about the purchase >=/ I told her to ask.

@Carlos Flores OMG. Even with 40% rule being applied it's less than 5%.... Yes it's $1200/mo GROSS. Apparently I forgot to use NOI...

@Tim G. I am working on making this house purchase the opposite of warm and fuzzy!!!

@Kevin Auyong The Turnkey properties she will be at a 10%+ CAP. The company managing the properties is very good at what they do. I would apply 45% to the total rent to estimate expenses through them including the management cost.

@Michaela G. Pretty house that is a real deal is what I'm working on... There are plenty of deals in our area and THIS IS NOT ONE! I spoke with my turnkey connection and told them to find her the cutest house they could ha

How do I convince her not to do this... and instead buy 2-4 houses with a turnkey company here locally?

The $210k house is in her neighborhood, has an elderly woman renting it, and doesn't need any repairs. My Mom says she wants to buy it because she doesn't have to do anything...

PHASE 1

Mom: There is an existing tenant and I don't have to do anything to manage it.

Me: What if the woman dies?

Mom: Then I can resell it.

Me: The house retails at $220k....

PHASE 2

Me: What if the market drops by 10%?

Mom: ....

PHASE 3

Me: This isn't a good deal... You are at 6.8% CAP rate.

Mom: I don't have to pay closing costs. I don't have to fix it up. I don't...(interrupted)

Me: You are paying $210k.......

PHASE 4

Mom: I don't want to have to do anything and I don't want to have to carry a gun to visit one of the houses you were talking about buying.

Me: You will be buying the houses turnkey and have a property manager who is currently managing 1,000+ houses in Indy... You won't ever have to look at the house.

That is the conversation in a nutshell.

How else do I convince her not to do this?

She says the $210k deal is less risky...

We are talking about my Mom's retirement money! I flat out begged her in the middle of a restaurant not to go through with the deal...

I'm speaking with my Turnkey people at 2:30pm today to get some options.

When you say, "for the rehab market" are you speaking about flipping the houses?

If they houses don't fit the Flip numbers it could still fall under the buy and hold criteria.

What is the ARV, est rehab, rent rate, and seller asking price?

Absolutely @Angie W. =) Those type of properties are called 'Turnkey' meaning they are ready to go!

Many big businesses focus on offering Turnkey properties to investors.

You should consider putting together a pamphlet (of sorts) with pictures/video of the house, average rent (rentometer.com / finestexpert.com), CAP rate, comps, and house details of course (asking price, bd/ba/sqft, etc)

Then I would jump on postlets.com and publish the information you put together.

or

Send the pamphlet to some wholesalers/investors and offer them ~$2500 if they find a buyer.

Hope that helps!