Trashed Homes and Shady Infrastructure Regulation - Jeff Schechter Crazy Sh*t In Real Estate with Leigh Brown

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. 
Please subscribe to this podcast in iTunes or in the Podcasts App on your phone, and never miss a beat from Leigh by visiting leighbrown.com. If you’re tired of doing real estate alone, enroll in  Leigh Brown University and be sure to use your special “CSIRE” discount code at checkout for $10 off your subscription.
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.