Turn key companies
Jasmine C.Pro Member
Real Estate Coach · Reno NV · Member since 2015 · 273 posts · 62 votesTurn key companies
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Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
11yI work with Curt over at BuyMempisNow.com. We have 2 properties with them we purchased about 3-4 months ago. They got 2-year leases exactly at the rate they advertised on their site. I own 9 properties and this was more of a test for us (low risk). So far it's worked out wonderfully. The numbers are slightly lower than the properties we purchased ourselves but that's to be expected.
I am not affiliated with them and they didn't pay me to say that. Just a satisfied customer passing along a recommendation.
49 Replies
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Dan Mikolajczyk:
The only way I can believe anyone is singing the praises of Ohio Cash Flow is that they are affiliated with them or being paid by them.
They might be doing some legit business, i dont have first hand experience with them. I just know that their website is very misleading.
@Nathan Eberly You are a Realtor at Danberry. on Ohio Cash Flows site right now they have a property listed as 1951 Loxley rd. Im sure, you are familiar with the area off of upton inbetween sylvania and central. On their web site right now under that property they have this comment: "renovated comparable properties in the area have been known to sell for as high as $90,000" is that a lie? because comps in the area are selling for between high teens to high 20s. and nothing above that. thats not embellishment. you endorse them, how do you explain this?
I called 2 property managers personally and told them the street and that it was 800 square foot 2 bed bungalow and asked what the range of rents were. both said 500-600 max. "if you keep the rents closer to $500/mo you can probably get a decent renter but for $600/mo they can get 3 bed in that area or a 2 bed in a much nicer area" i could be wrong but I think $600 with a suspect renter is the best you could do. on their site. they list the rents as $700/mo. I lived in Toledo for the first 37 of my 47 years, I was a Realtor there for 7 years in the 90s and my brother is currently a Realtor there we own rental property in the city. You would have to being pulling lots of wool to get someone to pay $700/mo on this street.
according to Lucas county assessors office the taxes are 1310 per year, Ohio Cash Flow list it as $1250 per year. a small discrepancy, but still.
the insurance cost is listed as $500/year. really?
the $840 per year in management fees seems to be the only thing that is correct.
Their stated ROI takes nothing off for vacancy and/or repairs. that's a little suspect. a rental property that is NEVER vacant, wow. No repairs? none, on a rental property? in THAT neighborhood? every book, seminar, course or info that i've ever seen on rental property always uses at least 10% for vacancy and repairs....but on this property, none. these guys aren't inexperienced, by their own account they have flipped 30+ properties in KS they have property in Toledo and are looking to invest in other areas of the country. They Know there is a vacancy and repairs part of this, they chose to not include it.
am I being to harsh? I don't think so. in my opinion none of this is even necessary. they bought the house for $9300 and they don't strike me as the sort that will put anything into a remodeling budget, so why not be honest and straight forward. they bought it for $9300 it could probably take a coat of lipstick and then the pig would be worth low to mid 20s, maybe even low 30s if they sell it lease purchase or land contract. or they could sell it to an investor by giving them real info like
$500/ month on a rent minus (-) 600 for vacancy and repairs - 800 for insurance - 1300 in taxes - 600 for management for a grand total of $2700 net per year. bought at something in the area of investor pricing $23k. that would get you a 11.7% ROI Not great for that area but still good enough for the right investor. if you were willing to take a little more suspect of a renter you could get closer to the 600 range and all the #s get better but then you have the headache of having a tenant that has no other choices but to pay more because they dont have a job and or any credit to speak of. $700/mo for this neighborhood? cant even imagine the renter.
Am I wrong? does anyone here have any information that contradicts what I have put up here? they own the property, forward me an insurance account for 500 a year on a rental property. has the taxes been lowered to 1250 since they bought the property 1 month ago? can someone show me a comp for more than $25k? and just in case anyone is confused about a comp an appraiser will look on its street then its subdivision, before going on to another area......in loxleys subdivision there are 8 comps within the last year ranging from $7750 to $24,900. $90k???? not now or in the next 40 years will this house be worth $90k. and saying so is either lying or total incompetence.
They can be realistic.
Hi Dan,
Welcome to Bigger Pockets.
Thanks for your comment, emails and phone call.
Its a pleasure seeing such comments as yours above as it means that our company is successful and growing and with that comes criticism.
I don't appreciate tho being called a liar or incompetent.
Also, we will consider the property you offered to Ohio Cashflow at 555 Myers St in Toledo.
First of all I will start off with the property managers in Toledo. Please feel free to ask anyone from Toledo on this forum about them. Unfortunately due to how low quality they are and how many investors they screw I wouldn't consider them to be a good source for information.
2nd - We were actually intending to contact the Lucas county and get the taxes lowered with a new assessment before the property is officially sold to our investor. (We always look at under promising and over delivering)
3rd - Please feel free to contact Affinity insurance from Kansas City to get a quote if you wish. Based on previous rentals this property should not cost more than $35-$40pm (The insured sum is not for replacement value)
4th - The reason why we don't include a % for maintenance and vacancy is due to every investor making their own estimates on the two. That's why we stress "CAP" and not "NET CAP". If you wish I can introduce you to 60+ investors that I have spoken to recently and they can that I always stress over the phone to include their own calculations for maintenance and vacancy.
5th - We actually paid quite a bit more than $9,300. That was the price the wholesaler who we bought it from secured it for.
6th - We currently have this property under contract and our investor is getting finance. I would be more than happy to let you know if it appraisers for our asking price. We have not quoted the property will be worth or is worth $90k. Please re-read the content on our website and your comment above - "Renovated comparable properties in the area have been known to sell for as high as $90,000 with a recent sale across the road selling for $48,000".
Please see screen shots below:
All of the recent comparable sales you mention are foreclosures. There are many comparable sales within the street and area justifying our asking price. Not sure what made you go out of your way and post on the forum but as I am pressed for time and not the quickest and typing I will be giving you a call sometime today to discuss in more detail.
Thanks and have a great day.
- Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes11y
All I can offer to you is for you to speak to any one that has done business with Ohio Cashflow. Please note that I have been working with the team at Ohio Cashflow after their purchase, rehab, and sale of Loxely. As I assist them with the sourcing and purchase of properties, I can only speak to that with new properties which may come forward. I do not work on any aspect of their sales to their investors (who have very high satisfaction rates from my discussions with them), and do not have any discussion in their marketing, comparables, or other aspects of their sales to investors.
Based on the information provided by Engelo, and their due diligence, the pricing of their unit seems to be in line. As for expenses, given their volume of transactions over the years and track record (and again happy investors), I doubt their have been significant fluctuations which have caused any material changes to their estimates.
It should be noted that I have NOT been compensated by Ohio Cashflow.
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votesThanks Nathan, Bloody hell mate, Looks like Ohio Cashflow will need to hire a full time legal team to monitor every one of our posts, blogs, interviews, the color of our socks lol, etc... Haha ;) Have a great day and chat soon.
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
@engelo rumora
@nathan eberly
a comp is a recent like property. not a house across the street that is twice as big and ten times as remodeled. the house across the street is NOT a comp. a recent REO that is similar in the area IS a comp. a house that sold 2 years ago is NOT a comp. trying to hide behind "hey it happened there was a sale" once upon a time is no excuse for trying to make it sound like if someone buys this house it could be worth $90k. the house at 2027 Loxley ACTUALLY sold for $18,200 NOT $91k. go check the MLS NOT Zillow who unlike the property managers in Toledo are notoriously wrong. You should have known, and im sure you did, that there was no way someone paid that amount for a little 2 bed in a suspect neighborhood. its misleading, and its unneccesary.
you use NET cap, how? oh I see the explanation, you explain what you mean by net cap in phone calls, so is that a recognition that what is on your web site is misleading? NET cap for anyone who doesnt know means what is left over after all expenses. and vacancy and repair rates are apart of that. you simple put on the listing what you used for the rate.
we were planning on trying to get the taxes lowered thats why i listed it lower than it ACTUALLY is? thats what you're going with. i cant even begin to respond to that.
You have the property pending, good for you, if the guy is a great credit risk and has at least 20% down i bet it will appraise. how about this we have an independent appraiser chosen at random appraise it, if the appraisal comes in lower than 30k you apologize publicly for your misleading website and pay for the appraisal, if it comes in over 30k I will apologize publicly and pay for it.
you stated : "All of the recent comparable sales you mention are foreclosures. There are many comparable sales within the street and area justifying our asking price. Not sure what made you go out of your way and post on the forum but as I am pressed for time and not the quickest and typing I will be giving you a call sometime today to discuss in more detail."
a comp is a recent sale not some fairy tale on Zillow. what made me go out of my way?
Simply this, IN MY OPINION, you inflate what the properties value is or even can be, you inflate what the rental rates are, you decrease intentionally what the costs are. and its unnecessary and anyone doing business with you should know that. what you did wasnt creative marketing, you offer your self up as a professional you should be made to adhere to standards.
Nathan Eberly is a Realtor and per the code of ethics he is legally held to a higher standard. Im sure endorsing you is not a violation of that code but in my opinion it should be.
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
@engelo rumero
"Thanks Nathan,
Bloody hell mate,
Looks like Ohio Cashflow will need to hire a full time legal team to monitor every one of our posts, blogs, interviews, the color of our socks lol, etc...
Haha ;)
Have a great day and chat soon."
That or you could just stop misleading people. it seems that would be the cheaper more upstanding route, mate
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
Hey listen @engelo rumora and @nathan eberly
Im not trying to be a jerk or besmirch your good name. I know thats probably hard to believe at this point.
i found your website like i find many others looking for investors tied to Toledo or Vegas. I have more local knowledge about Toledo than I care to admit. but aside from being born and raised there, most of the employment I had early in life had me out and about, and Ive lived in just about every area and still have relatives and close friends that live in every area. I KNOW toledo. and when I came across your website and what I consider to be egregious misrepresentations I reached out thru LinkedIn initially to question what was on there. I shouldve waited for a reply before posting on here.
Out here in Vegas I am very dialed into the Real Estate market and i was talking to a friend, who is also a Realtor and he was like forget LinkedIn go to Bigger Pockets, so i trip over here I do one search for investors in Toledo and you were on here. and i dont know i became offended by the out pouring of support for what I thought was a company that was less than straight forward. The loxley property wasnt the only one on there that I think is misrepresented. but i think i will stop giving my opinion on your website.
defending what was on your web site i thought made it worse. but im not the judge of anything. You guys are making money and conducting your business as you see fit, I shouldve just made a note to not do business with you, I didnt need to take this so public.
the laughing almost mocking nature of your next post about needing a lawyer was actually kind of funny, even if it seemed more an attempt to deflect the early conversation.
Im done. happy house hunting
- Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes11y
Dan - Included in the Code of Ethics are certain things regarding how Realtors interact with each other. Making a remark as you did regarding my character and my ethics, in such a bold statement, is most certainly a violation, especially given my explanations above and clarity I provided in regards to the item in question.
I ask that you remove your comment.
- Standard of Practice 15-1
REALTORS® shall not knowingly or recklessly file false or unfounded ethics complaints. (Adopted 1/00)
- Standard of Practice 15-2
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses and their business practices includes the duty to not knowingly or recklessly publish, repeat, retransmit, or republish false or misleading statements made by others. This duty applies whether false or misleading statements are repeated in person, in writing, by technological means (e.g., the Internet), or by any other means. (Adopted 1/07, Amended 1/12)
- Standard of Practice 15-3
The obligation to refrain from making false or misleading statements about other real estate professionals, their businesses, and their business practices includes the duty to publish a clarification about or to remove statements made by others on electronic media the REALTOR® controls once the REALTOR® knows the statement is false or misleading. (Adopted 1/10, Amended 1/12)
- Real Estate Investor · Kansas City, KS · Member since 2013 · 35 posts · 44 votes11y
What an odd way to start contributing on BiggerPockets by bashing one of the most reputable turnkey companies in the US?...
I sympathize for those who believe that their only route to success is to attempt at knocking other's towers over, rather than focusing on building theirs the tallest.
Wishing you the best of luck in your endeavors!
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Dan Mikolajczyk:
@engelo rumora
@nathan eberly
a comp is a recent like property. not a house across the street that is twice as big and ten times as remodeled. the house across the street is NOT a comp. a recent REO that is similar in the area IS a comp. a house that sold 2 years ago is NOT a comp. trying to hide behind "hey it happened there was a sale" once upon a time is no excuse for trying to make it sound like if someone buys this house it could be worth $90k. the house at 2027 Loxley ACTUALLY sold for $18,200 NOT $91k. go check the MLS NOT Zillow who unlike the property managers in Toledo are notoriously wrong. You should have known, and im sure you did, that there was no way someone paid that amount for a little 2 bed in a suspect neighborhood. its misleading, and its unneccesary.
you use NET cap, how? oh I see the explanation, you explain what you mean by net cap in phone calls, so is that a recognition that what is on your web site is misleading? NET cap for anyone who doesnt know means what is left over after all expenses. and vacancy and repair rates are apart of that. you simple put on the listing what you used for the rate.
we were planning on trying to get the taxes lowered thats why i listed it lower than it ACTUALLY is? thats what you're going with. i cant even begin to respond to that.
You have the property pending, good for you, if the guy is a great credit risk and has at least 20% down i bet it will appraise. how about this we have an independent appraiser chosen at random appraise it, if the appraisal comes in lower than 30k you apologize publicly for your misleading website and pay for the appraisal, if it comes in over 30k I will apologize publicly and pay for it.
you stated : "All of the recent comparable sales you mention are foreclosures. There are many comparable sales within the street and area justifying our asking price. Not sure what made you go out of your way and post on the forum but as I am pressed for time and not the quickest and typing I will be giving you a call sometime today to discuss in more detail."
a comp is a recent sale not some fairy tale on Zillow. what made me go out of my way?
Simply this, IN MY OPINION, you inflate what the properties value is or even can be, you inflate what the rental rates are, you decrease intentionally what the costs are. and its unnecessary and anyone doing business with you should know that. what you did wasnt creative marketing, you offer your self up as a professional you should be made to adhere to standards.
Nathan Eberly is a Realtor and per the code of ethics he is legally held to a higher standard. Im sure endorsing you is not a violation of that code but in my opinion it should be.
Hi Dan,
Thanks for your reply and your opinion is appreciated although you have stressed it in a vendetta way.
I left you a voicemail so please feel free to call me back at your convenience.
This will be my last reply to your posts as I am not a keyboard cowboy or interested in any back and forth banter. I ask you to please check your stats on the Lucas County site and not the MLS or Zillow. The property actually did sell for $91k.
You don't even know who we are or what our business model is so discussing our stats online is pointless.
To date there is not a single investor out there that Ohio Cashflow has wronged in any way. If such a situation did arise I would be more than happy to stand up, respond and take blame if I or the company where at fault.
Thanks for reading and you already have my number.
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Dan Mikolajczyk:
Hey listen @engelo rumora and @nathan eberly
Im not trying to be a jerk or besmirch your good name. I know thats probably hard to believe at this point.
i found your website like i find many others looking for investors tied to Toledo or Vegas. I have more local knowledge about Toledo than I care to admit. but aside from being born and raised there, most of the employment I had early in life had me out and about, and Ive lived in just about every area and still have relatives and close friends that live in every area. I KNOW toledo. and when I came across your website and what I consider to be egregious misrepresentations I reached out thru LinkedIn initially to question what was on there. I shouldve waited for a reply before posting on here.
Out here in Vegas I am very dialed into the Real Estate market and i was talking to a friend, who is also a Realtor and he was like forget LinkedIn go to Bigger Pockets, so i trip over here I do one search for investors in Toledo and you were on here. and i dont know i became offended by the out pouring of support for what I thought was a company that was less than straight forward. The loxley property wasnt the only one on there that I think is misrepresented. but i think i will stop giving my opinion on your website.
defending what was on your web site i thought made it worse. but im not the judge of anything. You guys are making money and conducting your business as you see fit, I shouldve just made a note to not do business with you, I didnt need to take this so public.
the laughing almost mocking nature of your next post about needing a lawyer was actually kind of funny, even if it seemed more an attempt to deflect the early conversation.
Im done. happy house hunting
Hey mate,
I can call you "mate" now as I appreciate this post above.
Please give me a call as I would love to really explain in more detail as to who we are and what we do. I am not looking to change your opinion of Ohio Cashflow but would like the opportunity to stress our business practices.
Your previous posts have been taken on board like I do with all criticism. We are looking to list more verbiage on our website for investors to further conduct their own due diligence before making any decisions and not to solely rely on the numbers we post.
We are still green and growing Dan and we make mistakes. I can guarantee that they are honest mistakes and we would never lie, cheat or steal.
Thanks and have a great day.
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
That property DID NOT sell for $91k. Call the realtor who sold it. it sold for $18,200!
and if you know anything about that area, you would KNOW that there is no way a sale happened in that area for $91k much less for one of the smallest houses in the whole area.
its disingenuous to point to a web site and say see, there it is. It didnt happen. say it however you want but you offered this up on your web site. not me. as soon as i read that I knew that it was wrong, didnt need to look it up, didnt need an appraiser. i knew. and you shouldve too, or at least known enough to question it, and definitely not put in on your web site as some kind of proof to value. dont say you werent claiming that this property was this valuable. you insinuated it. and that is disingenuous.
you say you want to stop this back and forth, so do I.
to anyone who watched this, I apologize. i just think the public needs to be treated fairly, not led to believe they are getting something they are not.
- Investor · Huntington, WV · Member since 2014 · 8 posts · 6 votes11y
I have been working with Ohio Cashflow and have been very satisfied by their responses and response times to my questions. They have been very professional and I am happy to say that I now own one little square of property in Toledo. I am very much looking forward to working with them in the future.
- Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes11y
There is a really simple way to end this argument. Property values are subjective and even an appraisal is not always the best estimate of actual ARV esp. if there are a lot of foreclosures in the area but it does provide a generally accepted measure of value. Considering that you just put 4 or 5 properties under contract why not just give approximate appraised values assuming they got loans and/or appraisals. We can argue all day about a property that has not yet been appraised or sold but your very recent comps are a fact.
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Charles Worth:
There is a really simple way to end this argument. Property values are subjective and even an appraisal is not always the best estimate of actual ARV esp. if there are a lot of foreclosures in the area but it does provide a generally accepted measure of value. Considering that you just put 4 or 5 properties under contract why not just give approximate appraised values assuming they got loans and/or appraisals. We can argue all day about a property that has not yet been appraised or sold but your very recent comps are a fact.
Thanks Charlie,
I agree and appraisals can be influenced in your benefit if you want to play that game. If you meet an appraiser on site they ask a ton of questions and hardly look at the stuff themselves.
Yes sir, we spent "$3,500" on that new furnace "cough, cough" (supply and install costs us $1,100) lol
All good as Dan and myself connected behind the scenes.
You know me Charlie, I am not a typer or one for Argie Bargie.
Just one of those days where heads butt for no benefit to us except the watching crowd haha
Thanks and chat soon.
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
I will take my comments back, all of them, if Ohio Cash Flow and Nathan are willing to admit that no house in the neighborhood that Loxley is in has sold for $90k and that insinuating that their property or any other in that neighborhood has a chance of hitting that lofty goal is remote to none.
As a Realtor Nathan should be able to pull that house up and give a market analysis in a matter of seconds. tell me Nathan, honestly, what do the comps tell you that house on Loxley is worth. no bs, stake your reputation, right here and now. what is your cma for 1951 Loxley. right now in this forum. put it out there. im willing to. if im bashing unfairly like dominique osborn claims. its easy to prove.
was the insurance correct? i dont know, but i doubt it. i am following up with the KS company to see if they will insure a rental in that neighborhood for $500 per year
was the taxes correct? NO
was the claim that there was a sale for $90k NO, yes he can claim he found that on the website zillow and the lucas county records, mistakes are made, but it doesnt pass the smell test, a novice with no knowledge of real estate can look at the prices in that nieghborhood and know that a mistake was made.
he says the comps i used were all REO. a comp is a comp. reo or short sale. doesnt matter, thats what a property sold for that is comparable to yours. deal with it. what he wants to use as comps is from years ago or arent comps......the house across the street that sold for $48k I cant find it, i found one so far down the street its in a different subdivision that sold for $68k, twice as big, twice as many bedrooms, compeltely remodedled from mechanicals to cosmetics. i know they didnt claim its a comp, they insinuated.
is there an explanation for why 2 expenses were not factored in to their NET, there might be engelo says its because he explains it on the phone just not on his site.....i am sorry i cant take that as a reason. too convenient.
what have i said that is incorrect?
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
i agree. we did connect behind the scenes and we have buried the hatchet.
I would like to publicly apologize for any of Ohio Cash Flows fans that I might have offended. it seemed that the websites claims were more than just embellishment. I understand completely why he said the $90k number now. I sstand by the statement that they shouldve known better. I found them because I was looking for people to do business with in Toledo, publicly questioning them had no benefit to me. I stood to gain nothing. In fact have been made to sound like the villain.
I have been in sales for 35 years, I take it personally when we are all lumped in with the gekkos or jordan belforts of the world. I take it personally.
i came here to present a property i thought is a great buy, not to get in a fight with one of the most respected turnkey sellers in america.
these are just my opinions.
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
please. accept my apologies. I meant to fight instead of understand. i was wrong
- 11yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Dan Mikolajczyk:
i agree. we did connect behind the scenes and we have buried the hatchet.
I would like to publicly apologize for any of Ohio Cash Flows fans that I might have offended. it seemed that the websites claims were more than just embellishment. I understand completely why he said the $90k number now. I sstand by the statement that they shouldve known better. I found them because I was looking for people to do business with in Toledo, publicly questioning them had no benefit to me. I stood to gain nothing. In fact have been made to sound like the villain.
I have been in sales for 35 years, I take it personally when we are all lumped in with the gekkos or jordan belforts of the world. I take it personally.
i came here to present a property i thought is a great buy, not to get in a fight with one of the most respected turnkey sellers in america.
these are just my opinions.
Hey Dan,
You sure did start your Bigger Pockets journey with a BANG haha love it ;)
All is good mate, I would rather you slap me in person next time when I make a mistake lol
Believe it or not, everyone that posted In our defense I had nothing to do with it. I am blushing now as I feel very loved haha
Thanks and see you around the forum.
ps. This is probably the most I have posted in one day than a whole month. Also, I received like 4 colleague requests and another 5 follows because of this haha
"All publicity is good publicity" I guess lol
- Las Vegas, NV · Member since 2015 · 10 posts · 2 votes11y
Hey Dan,
You sure did start your Bigger Pockets journey with a BANG haha love it ;)
All is good mate, I would rather you slap me in person next time when I make a mistake lol
Believe it or not, everyone that posted In our defense I had nothing to do with it. I am blushing now as I feel very loved haha
Thanks and see you around the forum.
ps. This is probably the most I have posted in one day than a whole month. Also, I received like 4 colleague requests and another 5 follows because of this haha
"All publicity is good publicity" I guess lol
See there everyone can quit sending me hate mail, apparently im on Engelo's marketing team now.
glad to have helped
- Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes11y
Wow, that was quite the debate!! This isn't to stir the pot again, as it appears you two have kissed and made up, but this is to inform the unsuspecting who may be confounded by the banter raised here.
Although the original public attack on @Engelo Rumora may have been warranted in his opinion (though pretty harsh IMO), perhaps @Dan Mikolajczyk would be better informed on the marketing tactics of Turnkey providers here on BP and elsewhere if he checked out a few others. If you check out most Turnkey websites, it is evident that the numbers they publish should be taken with a grain of salt. Most are embellished to give a rosier picture than actuality, and seems to be common practice across the board. So if one were to post closer to actual numbers, then their properties would seem an inferior product compared to their competitors and they'd likely lose market share. This is just the circumstance of the industry.
It's akin to reviewing the proforma from a seller on an apartment building, are these numbers taken as gospel? No, these numbers are generally inflated to extrapolate a higher value, and therefore a prudent buyer should do his/her own underwriting to determine potential performance of the asset. If not, then that buyer will be in for a whole heap of trouble after taking ownership. (FYI, you'll be hard pressed to find a turnkey SFR in any market that will have a Cash on Cash purchase return much higher than 10%, using actual expenses).
In essence, one must do their own due diligence prior to purchase. This includes but is not limited to researching vacancy rates and duration in the vicinity, checking crime rates, verifying rents, performing comps, tax rates, etc, and the list goes on. However, the most vital component of the purchase is vetting the PM who will be the success or failure of the property. A trip to the area and interviewing the PM team is paramount in determining whether you should invest with them. If you don't get a good sense that you can form a trusting relationship with them, then likely not the team you want to get into business with.
This has been said many times in these forums before, it doesn't matter how good a property looks on paper, it's the PM that can make or break the investment.
- Member since 2018 · 3 posts · 0 votes7y
@Engelo Rumora
I am very serious about looking for a turnkey property. I was on your website. Is it true your company does not work with anyone that needs financing? For example, conventional loans.
Originally posted by @Engelo Rumora:
Originally posted by @Allison Karrels:
@Engelo Rumora Does Ohio Cashflow currently work in other markets besides Toledo? I would be intrested in Dayton or Columbus
Hi Allison,
Thanks for your question.
Our main focus is Toledo at the moment and we haven't yet fully expanded into the Dayton market.
I think both Dayton and Columbus are great markets with higher growth potential than Toledo.
Thanks and have a great day.
- 7yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Jeremy Pyles:
@Engelo Rumora
I am very serious about looking for a turnkey property. I was on your website. Is it true your company does not work with anyone that needs financing? For example, conventional loans.
Originally posted by @Engelo Rumora:Originally posted by @Allison Karrels:
@Engelo Rumora Does Ohio Cashflow currently work in other markets besides Toledo? I would be intrested in Dayton or Columbus
Hi Allison,
Thanks for your question.
Our main focus is Toledo at the moment and we haven't yet fully expanded into the Dayton market.
I think both Dayton and Columbus are great markets with higher growth potential than Toledo.
Thanks and have a great day.
Hi Jeremy,
Thanks for thinking of us.
Unfortunately, we don't sell via financing as we have such a high demand from cash buyers that it just doesn't make sense for us to do so.
A typical closing via financing can take anywhere from 6-8 weeks and most of our investors tend to close within 7-10 days.
Let us know if we can help in anyway.
Much success
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