Anyone use Sierra Real Estate in Kansas City

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Anyone use Sierra Real Estate in Kansas City

Eric S.
Investor · Columbia, MO · Member since 2015 · 27 posts · 25 votes

I've been looking at the KC market for awhile and have seen some properties Sierra Real Estate has listed. They purchase, rehab, and manage them it looks like. The ROI looks good on paper. Some of them appear to be in areas I wouldn't be interested in but others are what appear to be decent locations. Just curious if anyone has used them. Thanks

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Larry Fried
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
9y

@Eric S. I couldn't find anything on them either, which would be a red flag to me.  What your describing is not what I would refer to as truly turnkey.  In this case you are essentially working with a wholesaler who then also provides the construction.  In most cases you have to come to it with all cash, and you are taking all the risk.  You don't know what you will come out with and you have to really be very careful in these kinds of deals.  It could be a lot of work to avoid getting the shaft.  Make sure you know these people, fully vet them, their PM services, and see the work they do, before you even consider moving ahead with them.

What price and rent range and type neighborhood are you looking to invest in?

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  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Eric S. What you are describing sounds like a turnkey provider, but I have never heard of this company and can't find anything other than a Sierra Group operating in KC.  Is that them?  In any case, there are a number of KC turnkey providers, but you have to be very careful about who you choose to work with as reliable ones are hard to come by.

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  • Eric S.
    OP
    Investor · Columbia, MO · Member since 2015 · 27 posts · 25 votes
    9y

    @Larry Fried I believe they are turnkey. Or at least similar. You purchase the homes which appear to be foreclosures and they give you an upfront estimate on what it will take to rehab it and rent it, approx. rental rate, etc... I found the Sierra Group as well but it is someone else I believe. I had no luck finding any info about them or mention about them here on other threads looking for turnkey or realtors. The deals in KC seem good on paper but they appear to be in some borderline neighborhoods. The reputable groups that I've found in KC haven't returned my email or call so I assume most of them have too many clients already.

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  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Eric S. I couldn't find anything on them either, which would be a red flag to me.  What your describing is not what I would refer to as truly turnkey.  In this case you are essentially working with a wholesaler who then also provides the construction.  In most cases you have to come to it with all cash, and you are taking all the risk.  You don't know what you will come out with and you have to really be very careful in these kinds of deals.  It could be a lot of work to avoid getting the shaft.  Make sure you know these people, fully vet them, their PM services, and see the work they do, before you even consider moving ahead with them.

    What price and rent range and type neighborhood are you looking to invest in?

    2Reply
  • Kim Tucker
    Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
    9y

    They advertise in the Kansas City Star regularly with a full page ad.  They are located in Nebraska and they farm out much of their leads to local investors.  There are a lot of turn key providers in the KC area such as:  McKinnis Real Estate (Nick McKinnis), Bridge Turn Key (Nathan Brooks - hes here on BP), MC Properties, USREEB (here on BP), Blueprint Properties and many many more.

    I don't know what service Sierra offers and actually didn't even know they offered turn key - I thought they wholesaled and retailed properties.  Some might be rentals, but not sure they have a team on the ground to manage the property after sold - they may.

    Don't go with the first group you find, do your research and check out several companies that offer servcies . . .see who are members of the local REIA group. See who have done business with other BP uses and get feed backfrom them.

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  • Eric S.
    OP
    Investor · Columbia, MO · Member since 2015 · 27 posts · 25 votes
    9y

    @Larry Fried @Kim Tucker I don't really have a price range or rent range per se, just looking for around a 20% COC return. I'd like to stick to C+ and above neighborhoods, and trying to avoid the $30k-$50k homes. They seem to cash flow great on paper but I've done enough of those deals locally when I started and they always have hidden costs.

    Kim, thanks for the feedback. I will continue to visit with the others as well. I'm in no rush. It's just overwhelming trying to get into a new market and talk to everyone.

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  • Beth S.
    Santa Ana, CA · Member since 2016 · 15 posts · 5 votes
    9y

    If they are related to which I think they may be DO NOT USE SIERRA REAL ESTATE SERVICES !!!!Steve Haight referred us to Linda Labbe who (wholesaled) really a referral to them. They are scam artists ! Stay away don't lose money like I did as a new investor.

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  • Eric S.
    OP
    Investor · Columbia, MO · Member since 2015 · 27 posts · 25 votes
    9y

    @Beth S. Yes, Linda Labbe is who I spoke with and she did seem like she was only refferring me. Thanks for the heads up! It sounded suspicious when I talked to her but it's good to confirm! I hope you are able to get out of yours without too much damage. It's frustrating trying to weed through the scams...

    1Reply
  • Sherri Wilson
    Wholesaler · Vickery, OH · Member since 2017 · 7 posts · 6 votes
    9y

    Eric,

    I would like to reply as a representative of Sierra Real Estate Services. We are by no means a scam, and we do offer competitive ROI's to the client.

    Unfortunately, a business can not please everyone, and some people will have buyers remorse. 

    I however would like to defend us against the accusations made. Beth and her husband purchased a duplex that was currently under renovations and when they arrived to see the property made many changes to the renovations that greatly changed the price, however when we started the changes they did not want to pay and wanted us to make thousands of dollars of changes at no additional costs, as a company this is not possible. We have put many hours into rectifying situations unforeseen with zoning and city officials at no additional cost, also went above and beyond to offer to help sell the property at no cost as well. 

    We have been in this industry numerous years and have a very happy customer base.

    Thank you.

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  • Eric S.
    OP
    Investor · Columbia, MO · Member since 2015 · 27 posts · 25 votes
    9y

    Sherri,

    That is good to know. I appreciate the feedback. I know it's hard to please everyone and many people go into a deal with unrealistic expectations. I hope it works out okay.

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @Beth S.

    @Eric S.

    You might check @Jay Hinrichs site which is reviews of TK providers.
    Seems well needed. I have registered URL for HML reviews, but have gotten quite a bit of feedback about being a HML and offering reviews. I have not given up on that idea, but would be more active with the idea if I had a 3rd party that wanted to do something with the site.

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @John Thedford:

    @Beth S.

    @Eric S.

    You might check @Jay Hinrichs site which is reviews of TK providers.
    Seems well needed. I have registered URL for HML reviews, but have gotten quite a bit of feedback about being a HML and offering reviews. I have not given up on that idea, but would be more active with the idea if I had a 3rd party that wanted to do something with the site.

     Maybe you could setup a wholesaler review site instead ;) LOL

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @David Faulkner  now that is a great idea.. we will start with Great Western... LOL... 

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    2Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @David Faulkner

    LOL...I LOVE IT!  but...how do you think they will be skewed..or is that SKEWERED?

    1Reply
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