All Forum Posts by: Zach Hoereth

@Liliana Ruano Ugh. Unfortunately, you are not the only person who has been impacted by Morris Invest here in Indianapolis. I have worked with some folks who have bought from Morris Invest that were in a similar situation to what you and your husband are facing.

That being said, @Ric Ernst hit the nail on the head mentioning that at best you are in a C class neighborhood. If this is the case there may be an opportunity to get the property rent ready and stabilize it. This will be a long process, but it could be a better option than selling at a loss. Additionally, if you have bought everything cash so far and can stomach more cash for renovations there could be room to refinance and pull your cash out if the numbers make sense. Sorry... there are a lot of ifs here. 

 However, if you are in are in a D class neighborhood it may be a tougher turnaround by dumping more capital into the property only to have the best piece of crap on the block.

I am happy to advise you on how I worked with others in their situation and what vendors here in Indy they utilized. Either way you do have options. I wish you the best and it sucks to see another Morris Invest victim in my backyard market. :,(  

P.S. @Chris Fuhs thanks for the shout out! 

Welcome to the Indy market @Aaron Brown!

Ensure that you perform your due diligence on all of your vendors. I do not want to beat a dead horse here, but there is not a "one size fits all" when it comes to property management companies. As you will find Indianapolis has some great areas that can quickly turn into rougher area in a matter of a few blocks. You must ensure that you have a solid team in place to assist you in navigating the city. 

There are a number of solid vendors here in the market. That being said, for someone who specializes in section 8 such as @Harvey Levin may not do as well with A class properties. For someone like @Ross Denman who assists folks with BRRRR opportunities does not specialize in section 8. The point is... narrow down your criteria, shop the vendors, and find specialists!

Investing in this market is not a cake walk, so ensure that you talk to a number of folks and begin to formulate your plan of action moving forward. Far too often I will get calls, emails, & private messages from investors complaining about their PM company. My first question that I ask is how many companies did you vet. Typically, I get a response along the lines of... "well they had good google reviews, or they had so many good things to say." Don't be this guy/gal who finds themself in a hole 4 months post close due to a lack of effort in finding the right team. Hope this helps! Feel free to PM me if you have more questions. 

Cheers,

Welcome to BP @Skyler Cain-Moore!

We have a couple of apt complexes in Terre Haute. I am also in school, and would be happy to jump on a call to chat some more. Feel free to PM me. 

@Brandon Boyd you guys are killing it! I wish more young people would look at this as an option. While the glamorous downtown apartments appear great, they certainly are not paying you. I am working on a similar duplex scenario in mapleton fall creek. Excited to be living rent free here soon just like you and your wife!

@Logan Coyle you need to read this. :)

Great job to the two of you!

Cheers,

Hey @Suzanne Marta! Glad to hear you are interested in Indianapolis. I have been investing in Indy for a few years now. Below are a couple of tips to getting the ball rolling from my experience! 

1.) If you are buying 2/1s make sure that your cost basis is very low getting in. Most folks run into trouble because they have overpaid and there are multiple capex items in need of attention. For example, if a 2/1 rents for $650 & purchased for 60k. If a water heater or furnace goes out one year the cost to replace either of those items is a significant chunk of your cash-flow. 

2.) If you are sticking with single family rentals buy for cash-flow, and not appreciation. Many out of state investors (OOS) run into these problems because they are not familiar with how appreciation works here in Indy. There are not as big of swings in property value here. 

3.) Have a good team in place. Regardless of whether it is a property manager, agent, contractors, ect. I cannot stress this enough. Great deals can quickly be run into the ground with poor management, so do your due diligence. Perhaps take a trip to the market and visit with some vendors and see who it is that you connect well with. Indianapolis is a small place with a number of good vendors. 

Hope this help! 

Cheers, 

Be careful with blanket loans here. @Harvey Levin could expand a bit more on this as he has clients here in Indianapolis having a big problem with their blanket loans. 

@Greg R. A lot to unpack here... but you've got some good stuff working in your favor. @James Wise brings forth some great points in regard to many folks from CA pushing capital towards the midwest because the dollar can go much further. As he mentioned, good amounts of opportunity for turnkey as well as buy & hold properties in some of the midwest markets. I have worked with a number of people who have utilized money from their personal residence whether it be from a HELOC or refinance. If that is the route you wish to proceed with I believe that would help you get your foot into the market with 1 or 2 SFRs and build some confidence underneath yourself.

Luckily, there are a bunch of different ways to make money in this business, so don't over complicate things. Although you do not have a ton of time to commit I would advise seriously vetting all of your vendors before getting trigger happy. Don't be afraid to connect with others who are in your state that are investing in midwest markets. You do not need to reinvent the wheel. Maybe connect with @Frank Lin because your situation reminds me of when I first connected with him. Hope this help! :)

Cheers,

Zach

@Jay Wu Incredibly impressed with your thoughts/words surrounding buy & hold vs. BRRRR as a newbie. Would be interested to connect with you even further to see how we can work together. I have experience with SFR as well as MF so happy to help there also. I have done a few transactions in my short time in the business. Shoot me a PM and we can schedule a call. :)

Cheers,

Zach 

Hey @Nathan Woo sorry to hear you are going through some trouble! If you'd like to PM me I am happy to share a few companies that I am familiar with. Depending upon where and what kind of class your property is will help determine which company better suits its needs. 

Cheers,

Zach 

@Nick Giulioni brings up a good point about what you are looking for @Jerry Akop. There are opportunities to be had in Indianapolis both on and off the MLS. Just as Nick mentioned though, most wholesalers and some brokers will want to know that you are serious about closing on a property before spending much time with you.

I have worked with multiple "new" investors and helping them get their foot into the market. From what I have experienced I would suggest a few things:

- Come willing to actively participate

- Be ready to learn

- Be patient 

 Far too often I run into folks that want to peruse zillow on a day to day basis to then forward them to their broker or property manager asking whether or not it is a good deal. I would suggest getting with a local broker, pm, etc who has some properties and can help you navigate the market a little better more efficiently. Illustrate to your local contact that you are engaged by providing feedback on what it is that you are being presented with. Hope this helps! 

Cheers,

Zach