201 - Trashed Homes and Shady Infrastructure Regulation - Jeff Schechter

Want to become a real estate investor without all the heavy
lifting? Jeff Schechter, the CEO and co-founder of High Return
Real Estate, has created a solution for investors who want to add
more real estate to their portfolio without adding more
headaches. Because he lives and works in Indianapolis, Indiana,
his clients rest easy knowing he and his team are just a hop and
a skip from their properties. Listen in to hear Jeff’s crazy
experience with trashed homes and shady infrastructure regulation
- and learn how to make sure you’re up-to-date on the local
politics that could impact your bottom line. 


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Time Stamped Show Notes


00:30 – Introducing Jeff, the CEO and co-founder of High
Return Real Estate in Indianapolis, Indiana

00:50 - His company is a turnkey solution for real estate
investors/ owners who don’t want to manage their properties
but want to reap the benefits

01:50 - He got into the industry through his digital
marketing agency; a client wanted to chat with him about a
potential business idea

02:45 - After a call and brainstorming session, High
Return Real Estate was born; they are a
by-investors-for-investors company



04:50 – On being in lower-to-middle priced areas

05:22 - They make sure tenants are safe and taken care of
while still making sure the investor is maximizing their
investment; their processes are transparent

06:20 - Their clients are mostly out-of-state; rent
control in the other states could be a factor

07:35 - Real estate is cyclical; Jeff believes in the
free-market economy and sees the coronavirus economy as part
of the natural cycle 

09:30 - They consider the price-to-rent ratio when
thinking about which markets to enter; they also consider
landlord-friendly laws



12:00 – Jeff’s price-to-rent ratio formula

12:05 - They’ve started using a percent rule on their
worksheets; the use a “gross rent multiplier” and starts at
1%

13:15 - Sometimes they get deals from wholesalers, hedge
funds, and by researching; they have a lot of valuable
relationships and can buy things cheaper

14:00 - They have merit because they’re local; they don’t
mark up their prices a lot because they work with volume

15:15 - Their markup is basically on the construction and
re-hab; gentrification is happening in the city and is
causing some upper price pressure



16:40 – Jeff’s CSIRE story

17:00 - Sometimes it’s mindblowing how people leave a
property; part of the rehab cost is the cleanup and sometimes
a professional crew needs to come it

18:12 - They did a beautiful rehab to property but there
was an issue with a water meter and crawlspace; they fixed in
and the city rejected their work

18:40 - They wanted a line created to the street; they
wanted the owners to pay for the infrastructure if they
wanted water to flow to the property

20:40 - Pay attention to local politics and
infrastructure, be involved, and as an investor work with
people that live and know the area



21:45 – How to contact Jeff: go to the High Return Real
Estate website and check out the High Return Real Estate Show



3 Key Points
Consider the price-to-rent ratio as an investor.  Pay
attention to local politics where you choose to invest. 
Engage with a team that is local when looking to invest elsewhere.