JWB Real Estate Capital
Jacksonville, FL · Member since 2016 · 6 posts · 3 votes
JWB Real Estate Capital
Most Popular Reply
I can share my first-hand experience. They have a very large organization and manages hundreds of properties. I went ahead and took a chance on having them rent one of my properties and all I can say is to be very careful about having them manage your properties because they will have no qualms hiring service people for everything and, as the owner, you will get charged top dollar for everything. For example, if the lawn is mowed, the price was double the normal amount that I've had the lawn mowed in the history of the property. While it is vacant, they have regular cleaning done every 2 weeks whether you need it or not. I had only one showing and was charged every two weeks, of course. I visited the property and it was spotless...yet I got charged for cleaning on a vacant property that same week. With hundreds of properties in the management, it is a large customer service type of setup so you never talk to the property manager, but rather a client representative only. They do have friendly customer service reps, however.
Also, be aware that the property manager will never actually visit the property to check on it. They told me that this isn't to their best interest and found that it didn't really make a difference so they don't check on property (ever) except maybe a drive-by. Therefore, any calls they get from tenant just goes to a vendor who charges whatever they feel like--pretty easy managing...just answer the phone then farm out the work and charge the owner. They are too big to pay your property much attention or try to save you money so everything is just hired out to vendors who charge top dollar.
So just be careful that your costs are totally out of your control. Also, as an owner, you are not allowed to do anything to help save yourself money...you cannot hire anyone cheaper or do anything yourself. I've never been charged so much money ever by a property management company.
One good thing is that they were able to find a tenant who signed a lease for 3 years, so we'll see how that goes.
57 Replies
- Investor · San Diego, CA · Member since 2017 · 112 posts · 92 votes8y
I scheduled a call w/ JWB and considering investing for new construction. A lot of these issues mentioned above are good lessons learned for new investors. Always get an inspection, always crunch the numbers before you decide using your own method , using real numbers for insurance and property taxes. The proformas can be spun any number of ways.
- Jacksonville, FL · Member since 2018 · 1 post · 0 votes8y
How do turn keys work exactly. I received communication from them but reluctant since I do not know the process. What is the upfront investment cost? Can someone give me an example?
I can share my first-hand experience. They have a very large organization and manages hundreds of properties. I went ahead and took a chance on having them rent one of my properties and all I can say is to be very careful about having them manage your properties because they will have no qualms hiring service people for everything and, as the owner, you will get charged top dollar for everything. For example, if the lawn is mowed, the price was double the normal amount that I've had the lawn mowed in the history of the property. While it is vacant, they have regular cleaning done every 2 weeks whether you need it or not. I had only one showing and was charged every two weeks, of course. I visited the property and it was spotless...yet I got charged for cleaning on a vacant property that same week. With hundreds of properties in the management, it is a large customer service type of setup so you never talk to the property manager, but rather a client representative only. They do have friendly customer service reps, however.
Also, be aware that the property manager will never actually visit the property to check on it. They told me that this isn't to their best interest and found that it didn't really make a difference so they don't check on property (ever) except maybe a drive-by. Therefore, any calls they get from tenant just goes to a vendor who charges whatever they feel like--pretty easy managing...just answer the phone then farm out the work and charge the owner. They are too big to pay your property much attention or try to save you money so everything is just hired out to vendors who charge top dollar.
So just be careful that your costs are totally out of your control. Also, as an owner, you are not allowed to do anything to help save yourself money...you cannot hire anyone cheaper or do anything yourself. I've never been charged so much money ever by a property management company.
One good thing is that they were able to find a tenant who signed a lease for 3 years, so we'll see how that goes.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Rebecca K.:
Haha. The drama that keeps on giving. One of the properties I bought through JWB had its property taxes increase from roughly $900 to $2,500. When JWB sold me the property, they gave me just the proposed tax liability of the the land because it was new construction. Novice move on my part, but sleazy on their end to entice a new buyer. I hate giving negative reviews but this issue popped up past the time of transitioning away from JWB to new management.
yes Rebecca this is how new construction works.. existing tax bill is on lot only then you build a home its reassessed and you have the new tax bill. we are small home builders here in Oregon and in Charleston.. and I know the real estate brokers who sell our properties understand that and inform their clients as well as the lenders do.. this is a very well known situation.
you will also see this in states that have two tax rates not like we have on the west coast were there is equal tax's for all properties. but in some states you have massive owner occ discounts and the investors or non owner occ pay as much as double or more than homeowners.
So what happens is your looking at a new rental turnkey whatever and they pop on to the county website and the taxs are say 700 and use that in their proforma's well that was with the owner occ exemption.. you get your new tax bill and its double or triple but you bought based on cash flow projections of the lower amount.
so its incumbent on the buyer and their mortgage brokers to figure out what the milage rate is then figure out tax's based on either new construction or having the owner exemption go away.. people buying in Texas get floored by this a lot. what was proforma 200 month cash flow becomes negative 100... buyer needs to be on top of this.
- Property Manager · Ketchum, ID · Member since 2016 · 277 posts · 132 votes7y
Wow this whole thread is sort of the antithesis of what we want to see in the real estate market. Very sorry to hear about this sequence of events.
- Gilroy, CA · Member since 2016 · 41 posts · 21 votes7y
Thanks, Jay. It's definitely a lesson learned.
- Rental Property Investor · Jacksonville, FL · Member since 2018 · 50 posts · 10 votes7y
Thanks for sharing everything Rebecca!
- Rental Property Investor · Jacksonville, FL · Member since 2018 · 50 posts · 10 votes7y
Thanks for sharing everything Rebecca!
- Dayton, NJ · Member since 2018 · 53 posts · 18 votes7y
Hi Rebecca, I have been looking at JWB for some time and just stumbled upon this thread. Thank you for posting your experiences. So your first post was about two years ago. Since then has your experience improved? Can I ask if you are getting the ROI you expected? Was the investment worth it? Based on everything I am reading in the JAX forum it seems like REI opportunities in JAX have topped out.
- Rental Property Investor · Tysons, VA · Member since 2015 · 73 posts · 45 votes7y
I know this is an old post yet I want to put my 2 cents. I visited JAX recently . to be honest most of their locations I would not touch. For remote investor, I 'd rather get lower return exchange of better neighborhood. I would say for me finding a realtor locally would be better fit.
- Gilroy, CA · Member since 2016 · 41 posts · 21 votes6y
Hello all. I wanted to post an update as much has happened since my last posting. Real estate investing is a new endeavor for me and with new things, comes learning curves and growing pains. Unlike my stocks, I kept a constant watch on my rental homes in Jacksonville. While it's good to be aware, this created a lot of unneeded stress. Additionally, I am not relying on my stock income for immediate use but I was with my real estate investments.
These two factors contributed to a stressful investing experience that had nothing to do with Jacksonville Wealth Builders, (JWB). Currently, I'm trying to have patience and resist the urge to immediately take action because sometimes you have to wait (vacancy).
There are a few things I would like to clear up. Luckily, JWB took a larger security deposit which covered the turnover costs when my first tenants unexpectedly moved out due to the death of a family member. There was about $400 left from that security deposit. JWB planned on using that remaining balance from the security deposit to cover the next tenant placement fee (instead of collecting the first month's rent). This coverage would pay for marketing the vacant home. I wanted that money ASAP as I wasn't receiving any income while the unit was vacant. JWB ended up giving me the $400 and DID NOT charge me an additional tenant fee (which would have been almost $1,400).
I have another issue to clear up involving property taxes. JWB tries to accurately forecast how much the property taxes will be once the property is in your name. Mortgage banks pull money from your escrow based on prior year's tax value (which in my case was a value before the house was built). My monthly mortgage increased when the bank had not pulled enough money to cover the escrow shortage. There is not much control JWB has over this. JWB's estimation ($2,200) came quite close to the updated tax amount ($2,247.69). JWB ended up paying me the difference.
There are a lot of things JWB does that they do not advertise. Their motto is to under-promise and over-deliver. They have excellent customer service and I know all of their team (so far I've worked with Brian, Victoria, Lauren, Reagan, Rachelle, and Gregg) is constantly watching everyone's investments and making sure they get as close to the ROI as promised. That's one of the reasons I'm back with them as a property management team. - New to Real Estate · Member since 2020 · 1 post · 1 vote6y
Thanks for your update @Rebecca K. I am considering investing in a turnkey from JWB. I put that on hold for now since I invested in a MFH in Missouri. Now, I'm looking for the next opportunity.
- Gilroy, CA · Member since 2016 · 41 posts · 21 votes6y
That's awesome, Gio. I have always been interested in a MFH and in Missouri. I hope it goes well for you.
- 6yGregg CohenBusiness MemberRental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
Hello all. I'm one of the owners of JWB and just wanted to join this thread as I can tell it's been quite popular throughout the years. First off, I just wanted to say thank you to @Rebecca K. for being a client and also for sharing her journey over the years. As we know, investing in rental properties involves a lot of moving parts. I know there were some concerns and it is a great learning experience for the entire BP community. I haven't been an active contributor to BP in the past but I'm looking forward to jumping in and being a resource to the group!
@Rebecca K. - It's been great to have you back as a client. I really appreciated you updated your post and clearing up the fact that JWB didn't charge you an additional tenant placement fee due to the extenuating circumstances with your previous tenant. I also am glad you gave real numbers for the property tax concern. It is really common for investors not to properly estimate property taxes, especially when it comes to new construction properties that haven't been appraised for the first time. Luckily JWB builds roughly 400 new construction properties each year and many of these are in the same neighborhoods so we can use our previous builds when estimated property taxes. Conservatively estimated returns on the original property evaluations is really important to us!
I also wanted to address any other concerns that others had. You'll have to forgive me as some of these posts were made quick a while ago but I wanted to clear up any misconceptions.
@Joey Hamaoui - We love working with real estate agents to acquire properties. We do charge a full month's tenant placement fee while others charge only 50%. However, we only sign 2-3 year leases whereas other companies only sign 1 year leases. So the tenant placement fees with JWB are actually less expensive many times when analyzed over the long haul. And the investor wins in the long run when you have long-term tenant stays. Hope we can work together in the future!
@Jim Schock - Sorry if I made you feel like you could never walk your property. Must've been a miscommunication on my part. We actually fly all of our clients in and take them on a tour while covering up to $1k of the costs because we want our clients to get to see their assets. We just work very hard on the front end to bring clients who want to be passive in this investment.
@Jack Bobeck - Thanks for the compliments!
@Emy Bernardo - Hopefully Rebecca's most recent post gives you confidence to know that JWB uses real numbers for both property taxes and insurance in our initial property evaluations.
@Jay Hinrichs - Long time, no talk! You're right. Many investors only pay attention to the previous year's tax assessed value which is no good for buying a new construction property. We estimate property taxes based on comparable properties that we built in the area to make sure we give the appropriate expectation to investors.
@Robert L. - Hey Robert. Like we discussed on the phone, we made a few mistakes in the management of your home. We're not perfect and if we screw up, we want to be accountable. We also went out of our way to cover a significant amount of costs for you as a sign of good faith. I can understand your feelings but I can assure you that we're not too big to pay attention to ways to save investors money. Maintenance and vacancy costs are the two biggest pain points for an investor and we care deeply about keeping these costs low.
@Jasmine Hu - We've found the most success by investing in below middle-income to middle-housing for cash flow and appreciation. But you're right, investing in these neighborhoods many times means investing in a house that you may not want to live in yourself. We try to address this one one of our first phone calls with a potential client. Best of luck in the future.
@Sri Yalam - We recommend clients buy and hold for a market cycle to achieve the highest rates of return from cash flow and appreciation (10-20 years.) However, when the time is right to sell, we're a resource for you. You don't want to sell to an investor typically as your best price largely will come from someone who wants to live in the house. So we pair you with a local agent that we trust to liquidate the asset. As far as tenant info, we don't share that with owners. Part of this is due to confidentiality requirements and part of this is because the type of owners we typically have put their trust in us as the experts to make the correct decisions as far as tenant approvals.
@Timmi Ryerson - I hope you have a chance to read Rebecca's update. We care deeply about doing things the right way and being a positive force in real estate.
Thanks again for sharing all of your thoughts and concerns and I'm looking forward to interacting with you all on a more regular basis.
Gregg Cohen, Not Your Avg Investor Show4.5237 Reviews - Ashburn, VA · Member since 2015 · 2 posts · 4 votes6y
I realize this thread is a bit dated, but wanted to add my 2 cents. My wife and I started with JWB in 2015 and have purchased multiple properties with them. First I know turnkey get's beat up a lot on biggerpockets, but it is useful for people with solid income, but little time or with the ability to easily invest locally. Of course you won't get the returns you have from BRRRR, but you also don't have the headaches. We live in a HCOL and after extensive researching, interviewing several companies we choose Jacksonville, FL and JWB. We flew down to see the first house for purchase (most other purchases just saw a video) and meet the team. We were impressed with how they were growing, their strategic plan, and the people. They focus on certain zip codes which helps set and keep up the home prices in the area, which provides some security with home values and they really know their areas.
Over time we continued to purchase investment properties which had almost all been updated and had a tenant or had one moving in prior or immediately after purchase. Returns have been in low teens percentage so fairly good for turnkey. Because of the renovations prior to purchase turnover costs were fairly low in the beginning and stayed in the normal range. Vacancy has been very low and quick to fill when needed, also leases tend to be longer 27 months or so which helps lower tenant placement fees and turnover costs. Obviously the biggest advantage is we don't have to deal with day to day issues and even larger issues they provide pretty solid guidance for us to make a decision on. As in every business we have had challenges, but JWB has always come forward to help with any issues including taking on some costs in grey areas.
Overall very happy with JWB services especially when their are issues like our current COVID-19. Love the Jacksonville, FL market and the returns\appreciation there. If anyone has any questions feel free to ask.
- Fremont, CA · Member since 2017 · 23 posts · 13 votes6y
Originally posted by @Gio Denina:
Thanks for your update @Rebecca K. I am considering investing in a turnkey from JWB. I put that on hold for now since I invested in a MFH in Missouri. Now, I'm looking for the next opportunity.
PM me and I can tell you a little more about JWB.
- 6yGregg CohenBusiness MemberRental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
@Matthew Lucas - Thanks for sharing your experience! We've loved working with your family through the years.
Gregg Cohen, Not Your Avg Investor Show4.5237 Reviews Originally posted by @Jack Bobeck:
Just received the JWB newsletter, yes they send one out. Pretty impressive, here are their stated, stats:
Current Properties Under Management - 1730
Total Rented houses in 2017 - 759
Average Duration of Leases signed in 2017 - 30 months
Percentage of Resigned Leases in 2017 - 71%
Current Occupancy Rate - 97%
Do we have updated stats for 2019?
Originally posted by @Rebecca K.:
Hello. I am currently working with JWB. They have great customer service and I was very pulled in by their desire to build a long-term relationship with their investors. In a podcast, they mentioned how typical property managment companies collect first month's rent as a tenant placement fee. I was surprised to read that JWB still does collect first month's rent as a tenant placement fee.
I received an email from JWB yesterday saying not to be alarmed, when in fact the situation was quite alarming. One of the tenants passed away, and they had to vacate. They were a few months in to a two year lease. About $1,300 is being done on the turnover and JWB will be collecting a tenant placement fee. Not too happy about the situation as I was just starting to enjoy the passive income. The situation has also put a sour taste in my mouth and I am reluctant to invest with other turnkey properties. I will continue to update with the progress of the situation.
All in all, they have a great motto to "underpromise and overdeliver," unfortunately, it's been the other way around.
Please update us on your experience with JWB, Rebecca.
Originally posted by @Robert L.:
I can share my first-hand experience. They have a very large organization and manages hundreds of properties. I went ahead and took a chance on having them rent one of my properties and all I can say is to be very careful about having them manage your properties because they will have no qualms hiring service people for everything and, as the owner, you will get charged top dollar for everything. For example, if the lawn is mowed, the price was double the normal amount that I've had the lawn mowed in the history of the property. While it is vacant, they have regular cleaning done every 2 weeks whether you need it or not. I had only one showing and was charged every two weeks, of course. I visited the property and it was spotless...yet I got charged for cleaning on a vacant property that same week. With hundreds of properties in the management, it is a large customer service type of setup so you never talk to the property manager, but rather a client representative only. They do have friendly customer service reps, however.
Also, be aware that the property manager will never actually visit the property to check on it. They told me that this isn't to their best interest and found that it didn't really make a difference so they don't check on property (ever) except maybe a drive-by. Therefore, any calls they get from tenant just goes to a vendor who charges whatever they feel like--pretty easy managing...just answer the phone then farm out the work and charge the owner. They are too big to pay your property much attention or try to save you money so everything is just hired out to vendors who charge top dollar.
So just be careful that your costs are totally out of your control. Also, as an owner, you are not allowed to do anything to help save yourself money...you cannot hire anyone cheaper or do anything yourself. I've never been charged so much money ever by a property management company.
One good thing is that they were able to find a tenant who signed a lease for 3 years, so we'll see how that goes.
Wait, they were doing a cleaning on the property every 2 weeks, while it was VACANT? Can't you just tell them to stop? Please update us.
- Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes6y
@Andrey Y. I do not have updated stats, but ask the source, @Gregg Cohen, he will get you ALL the stats you need.
- Gilroy, CA · Member since 2016 · 41 posts · 21 votes6y
I will post a more detailed update once I have the time. I want to get all the facts straight. Thanks for your patience.
- 6yGregg CohenBusiness MemberRental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
Hey @Jack Bobeck - thanks for giving me the heads up.
Hi @Andrey Y. - We report on our property management stats every month. We're just about to send out the June issue of our client newsletter. Here are the most recent PM stats:
June 2020 JWB Property Management Stats:
Current properties under management: 3,567
Total Rented Houses in 2020: 503
Average Duration of Leases Signed in 2020: 27 months
% of Leases Re-Signed in 2020: 74%
Current Occupancy: 96%
For reference, these were the JWB Property Management stats when Jack originally posted (around end of 2017):
I'll send you a PM. I'd be happy to answer any additional questions about the Jacksonville real estate market or JWB as well.
Gregg Cohen, Not Your Avg Investor Show4.5237 Reviews - Huntsville, AL · Member since 2019 · 21 posts · 14 votes6y
I have been looking into getting into the JAX market, and as indicated above, turnkey is good for folks with steady income and little time. My research led me to JWB. While everything seemed great on the first call, I found out quickly on the second call that the process is not as transparent as one would be led to believe. Before you can view any available properties, you must be pre-approved through JWB's lenders. You cannot bring your own lender to the table, and they were unwilling to share the list of approved lenders, so I could see if there was overlap with my lender. While I'm sure this model may work for some, I am not interested in being kept in the dark regarding my options (and my money), so I will look for other options in JAX.
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