Experience with USREEB?

168 Replies | Kansas City, Missouri

Hi, I'm looking for input / review on working with US Real Estate Equity Builders (USREEB) in Kansas City, MO. They do mostly turnkey-ready investment homes.  Thanks for any input on this company. 

I, too, am also interested in hearing from anyone who has done business with this company. I just contacted them today to discuss a property and hear more about their company

So, nobody has comments on USREEB in Kansas City, MO??  I'm meeting with them on Wednesday and would appreciate comments, good or bad.

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I am currently in escrow with them. Will post some summary comments when we're finished. 

I know the guys who installs their HVAC systems and he is as good as I know. Overall I think they are good at what they do but Im not a fan of their business model in general, I also have not seen their business close up so I'm not one to say how well it works.

Overall looking at the prices of their properties you are't getting a deal and basically paying market prices for the property and I'd be surprised if they can hit their advertised returns but again I have no experience with them. I just think their business model in general is not a great deal for the investor but it really comes down to how well they can manage the assets after its purchased, if they are great at that its worth it for specific people who need this type of service.

I am just in the early phase of my relationship with them (having purchased a home from them in July) so it is a bit premature to post my experience. We are just now entering the property management phase, and I've had one issue that they have successfully handled (so far). I'll post a follow-up once we get a little further down the road.

I just closed on 2 properties with them this month. Overall the staff has been helpful and easy to work with. I had to put pressure on them to perform some repairs that were discovered in the inspections (namely foundation cracks). They wanted to just do a sealant, I hired another inspector who said no-way, a structural repair was needed, so I had to pressure USREEB to do the structural repairs. The other house had a sewer issue that came up during appraisal, that I would have never known about except my appraiser was very diligent.  So do your due diligence and inspections aggressively. They might try to cut corners on some of the repairs if you're not aggressive.  The properties seem to be cash flowing but it's brand new so I can't speak to the long-term.  Their inventory is mostly C and B, so make sure you're familiar with these types of neighborhoods, some are rough.  

@Phillip Syrios Curious where you are getting your data?  All of our properties appraise over the market sales price and our investors land in a great position with instant equity and cash flowing properties. 

If you have zero experience with a company, I don't recommend giving any advice. 

So far things are going well for my 3 properties with USREEB. They have gotten tenants readily within the first month of purchase and the initial tenant placement is included in part of the deal (IE, the buyer doesn’t have to pay a lease-up fee for the first tenant), which is a very attractive feature of this turnkey provider. 2 of my 3 properties appraised just over my price and 1 appraised right-on my purchase price.  Cash flow and communication have been very good. I have my first move-out and new tenanting coming up Jan 2017 so we’ll see how the transition goes. 

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So to speak to @Phillip Syrios and his pricing  comments and then @Sean Tarpenning and the Turn key provider model.

First Phillip and his company do their own investing in Kansas City.  They have people on the ground doing the work, looking at the properties and speaking with the tenants.  This model allows you to buy the houses at the discounts, hire and manage your own contractors, and be your own property manager.  Which means you get better pricing all the way around - cheaper houses, cheaper renovations, cheaper property management and better cash flow returns.  How he works with his investors via private partners and investors in a deal and his investors know their returns.

The Second Model is Sean's model.  His company buys the property, renovates the property, rents the property and then sells it to the investor (making a profit) and then manages for the investor (again making a profit).  This model does not get the houses and the repairs made at the same discount that Phillips model does, because it's not supposed to.  It is a service model for the investor who does not have boots, bodies or employees on the ground and does not have the time to devote to managing that team.  This is the done for you model and it is for the investor who is willing to pay a more to not have to do all the work.

I can speak for Phillips company as I have first hand knowledge of his company - I sell houses to him from time to time.  They are out there walking through houses and getting the deals.  But they hold their houses in their Do It Yourself Model.

I can't really speak for Sean's company in particular because while I have met a few of the players this past week, I have not really done any business with them.  But their model is not a bad model, yes houses cost more to buy from them, but in a Done for Your Model, they are supposed to.

It's all in the time you have to devote and the proximity to the city where you are investing and the knowledge you have.  

Hope this makes sense, need more coffee this morning.

I have done transactions in both types of "models" and I'd agree with Kim, you can save money doing more of the work and logistics yourself, but you are spending more time and energy to do so. With the turnkey model, you do often get an "instant" tenant, so considering that there is no down-time and no first-month property mgmt fee, that can be worth $1-2000 instantly, which helps offset some of the higher initial cost of the turnkey product. The downside is that you probably won't find that diamond-in-the-rough, home-run, huge ROI deal with the turnkey model. It's more slow-n-steady.

I can only say great things about our experience with USREEB... I don't have the time to set up a team and have "boots on the ground", I know I could make more money doing it myself, but my own time also costs money and USREEB makes me more than enough money to keep me happy!

Please DO KEEP IN MIND - in the Done for You model that there are a lot of start ups and a lot of fly by nights in Kansas City.  The ones I have heard really bad things about were scamming all the poor Australians in 2009 and 2010 as well as coastal investors - I think for the most part they are gone.

However, before you partner with any company be it as a private lender for those doing it themselves, a done for you turn key model company or even hiring a contractor

@Larry Fried We've been with USREEB since February 2016 and have bought 7 SFR, it will be interesting to see how they handle any tenant changes next year, however, if their past record is anything to go off it should be pretty seamless!

Originally posted by @Kim Tucker :

Please DO KEEP IN MIND - in the Done for You model that there are a lot of start ups and a lot of fly by nights in Kansas City.  The ones I have heard really bad things about were scamming all the poor Australians in 2009 and 2010 as well as coastal investors - I think for the most part they are gone.

However, before you partner with any company be it as a private lender for those doing it themselves, a done for you turn key model company or even hiring a contractor

back in those days I had not found BP but was a regular on the AUSSIE version and yes there were some very BAD actors in KC... I helped more than a few out of horrendous situations.

I know the the Syrios boys as they are from Oregon and I don't know them well but I know there Dad had built a monster company here in Oregon... So I have no doubt they were like kids in a Candy store when they alighted on KC with the backing of their family business.

Buy and trust remote rehab has a whole nother level of trust.. this is the most risky.. with risk there is reward.. I fund one company that does this in Birmingham.. and he does well but I have been funding his deals for about 15 years now... he sells to a very select group out of LA.. most of them own 20 to 50 homes each... so its really a contracting service with a acquisition component.  they use me to secure the deals.

Originally posted by @Rachel Bier :

@Larry Fried We've been with USREEB since February 2016 and have bought 7 SFR, it will be interesting to see how they handle any tenant changes next year, however, if their past record is anything to go off it should be pretty seamless!

I have been work with Sean for 2 years now and have invested probably 2 to 3 million with him.

I call him the energizer bunny.... you talk about energy.. .wicked smart and at the perfect age and motivation to build a monster company.   As with any rental anywhere there are a certain amount of risk and that's no different in KC from other markets... but you have someone who cares and will stay on top of it.. they are vertically integrated when you walk in the office PM is front and center.. not much gets by Sean I can certainly tell you that..   I think he has mentioned you folks to me as he knew I lived at Silverado for a decade...

Anyone can order ala Carte or they can order the full meal.. that's all were talking about here.

and self serve buffet Is not as expensive as full sit down dinner..

its about cash flow ... time management... and security of the asset.  I know I won't fund deals with one of people in the cash flow markets that don't have PM in house or WEll taken care of.. period.

If we pull a cash buyer list - USREEB is at the top of the list - we have sold several houses to them as real estate brokers and as wholesalers - just closed on one today - it's going to be awesome once they have it rehabbed.