Newish Investor, New to BP - Hello!

16 Replies

Good morning BP!

I'm a newish investor looking to invest more heavily in Kansas City in 2018 - I bought a turnkey there this year, and so far it's going fine, but I'm looking for higher returns and will try the BRRRR strategy next year. So far I've got a lender, PM and GC lined up, but I'm just starting to talk to realtors, so if anyone has any suggestions, I'd love to hear them. (Piggybacking off of Gerry's post, Matt K, would it be ok if I reached out to you? Also, not sure how to do mentions with this system).

Beyond that - I live in the Bay Area and also have a turnkey in Memphis (through MidSouthHomeBuyers).  I bought my turnkey in Kansas City (Raytown) from Timothy Stauffer, and my current property manager is Voepel Management.  I'd love to meet up with anyone who's investing in Kansas City, either here, or in Kansas City (the next time I go down there; probably in January).  Also, you think there's anything I can do to help you (such as if you're curious about any of the the previous) please let me know.

Edit: uh, to be clear, I am _not_ asking for a mentor.

- Justin 

Welcome to the site Justin.

Justin,

I live in Kansas City and currently own two rentals with my wife. I am also getting ready to get my real estate license in January. I would like to connect with you and help you in any way that I can. Hit me up on PM. Looking forward to talking with you.

Thanks,

Jason

Hello welcome! Good luck on your rental portfolio!

I currently invest in the KC market and live about 3 hours away at the Lake of the Ozarks. WE manage the local REIA and hold a monthly meeting on the 2nd Tuesday of the month . . . so to connect with a lot of local people, I would recommend planning travel around that meeting - it features 1 hour of networking with about 100 people in the room some are beginners a lot are very experienced investors.

Welcome to BP @Justin V. !  It sounds like you are already on your way to being a savvy investor!  How did you decide on Kansas City, and which property?  Did you go through a turnkey website?  I am leary of those, so I would love to hear about your experience.

Hi @Justin V. and welcome to BP! Make certain to utilize the forum search function, it has worked wonders for me so far.

Originally posted by @Justin V. :

Good morning BP!

I'm a newish investor looking to invest more heavily in Kansas City in 2018 - I bought a turnkey there this year, and so far it's going fine, but I'm looking for higher returns and will try the BRRRR strategy next year. So far I've got a lender, PM and GC lined up, but I'm just starting to talk to realtors, so if anyone has any suggestions, I'd love to hear them. (Piggybacking off of Gerry's post, Matt K, would it be ok if I reached out to you? Also, not sure how to do mentions with this system).

Beyond that - I live in the Bay Area and also have a turnkey in Memphis (through MidSouthHomeBuyers).  I bought my turnkey in Kansas City (Raytown) from Timothy Stauffer, and my current property manager is Voepel Management.  I'd love to meet up with anyone who's investing in Kansas City, either here, or in Kansas City (the next time I go down there; probably in January).  Also, you think there's anything I can do to help you (such as if you're curious about any of the the previous) please let me know.

Edit: uh, to be clear, I am _not_ asking for a mentor.

- Justin 

 Hello and welcome! Best of luck to you!

@Justin I'd love to meet up. I invest in the area and run projects for other investors out of state as well. Welcome to the market!

@Justin V. - what part of KCMO do you want to invest in? I am a GC and agent - who flips full time. I don't represent buyers or sellers but I do know a couple phenomenal agents North of the river if that is where you are looking. 

Best of luck to you! PM me if you want some recommendations. 

Thank you, all!  @Kim Tucker - that's great advice, thank you.  It's looks like I'll be able to make the January meet up, so hopefully I'll see you there.

Hey Justin, welcome to the site. I'm an out of state investor (opposite coast from you though) who just bought a TK property in the KCMO too.

To mention someone you should be able to just say "@Name here" and a list of people who've commented on the thread will show up.

Good luck!

@Cara Lonsdale - sorry for the delay in responding.  Answers to your question below: 

> How did you decide on Kansas City, and which property?

In short: I was interested in an area that had good cash flow, but also some chance for appreciation, and Kansas City seemed to fit those requirements.  Is it the best area in the whole country?  I don't know; I doubt it.  But best probably changes every few years, and I figured it would be better to just pick a place rather than spend too much time analyzing geographic areas.

> Did you go through a turnkey website? [How did you pick the property] 

Sort of.  I actually went through Norada.  PM me for the details on my experience, but I found them valuable as a kind of turnkey real estate agent.  As for how I picked the property: I ran the numbers and picked a property that was in a low crime area.

I hear you on being leery of the turnkey property websites, but I think the best way to deal with your concerns there are just to verify the turnkey provider's claims and work: before you buy, have an independent inspection and appraisal report.  The appraisal will let you know you're not being cheated*; the inspector will confirm you're not buying a stinker.

* You're buying retail, so you're not going to get a deal, but the appraiser will run property and rental comps that will confirm that you're not over paying for the market and that you're not at risk of the rent ending up way low.

@Dan Krupa Thank you! After doing more research over the last couple of weeks, I think I've settled on the Independence and Raytown areas for now.

Originally posted by @Cara Lonsdale :

Welcome to BP @Justin V. !  It sounds like you are already on your way to being a savvy investor!  How did you decide on Kansas City, and which property?  Did you go through a turnkey website?  I am leary of those, so I would love to hear about your experience.

Cara, just like with anything, there are good turn key companies and bad ones so be careful not to generalize and lump them all in to the same category. Unfortunately, you tend to hear the horror stories of the bad ones which gives the turn key model a bad reputation in some peoples minds. It's not hard to sort out the good from the bad. 

In general, the ones to avoid are the ones that:

  • Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)
  • Don't allow for your own independent property inspection
  • Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)
  • Require you to pay for any renovation upfront
  • Sell only in cheap, low end neighborhoods
  • Don't accurately represent the neighborhood/property classification
  • Don't have consistent rehab standards for all properties
  • Don't provide a scope of work for the property
  • Can't provide references of repeat investors
  • Require you to close before a tenant is in place

Lol... I like the "uh, to be clear..." I assume that means you've had offers (I haven't read the rest of the responses yet).

If you are set on sticking to KC, I don't have options for this there, but I am working with a turnkey provider in Philly and Baltimore that is offering the turnkeys BRRRR-style. So you finance everything upfront (albeit in stages) and they do the work. They also offer guarantees on each of the big BRRRR risks- appraisal, rehab time, rehab cost, rental income start date.

Just wanted to mention it in case you want to combine turnkey and BRRRR to get the perks of both. I know other turnkey providers offer this in various markets, so maybe one in KC if you don't want to be the one controlling the hammer-swingers, but I don't know any outside of the Philly and Baltimore with a proven track record.

That option aside...KC is a great market and sounds like you are rocking things out so far!

Originally posted by @Cara Lonsdale :

Welcome to BP @Justin V. !  It sounds like you are already on your way to being a savvy investor!  How did you decide on Kansas City, and which property?  Did you go through a turnkey website?  I am leary of those, so I would love to hear about your experience.

Hey Cara! Good call to be leery on the turnkey sites. But there are some really good companies out there too. I've always bought turnkeys for myself and I'm happy to give you ideas on what to look out for or red flags, etc. Message anytime! 

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