Anyone worked with Profit From Rentals?

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Anyone worked with Profit From Rentals?

Petru Popovici
Investor · Littleton , CO · Member since 2014 · 30 posts · 10 votes

They are a Turnkey Company in Chicago and trying to see if anyone has dealt with them before and if so what's your experience?
Thanks

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y

@Miriam Nalumansi @Brie Schmidt @Engelo Rumora 

First off

 Brie is correct I do have experience with this company and I have a lot of experience in the space having funded over 2,000 rehabs in a 20 year career in 21 different states. And as such I consider this company a top Tier TK company and have invested with them.

I suspect I have quite a bit more experience than you have Miriam. To that point.

As Brie noted on a trip to Chicago when Brie and I got together for a nice dinner and to talk shop the purpose of the trip was to do deep due diligence on PPR and Alex the owner. I also met with Engelo and his partner on that trip...

I spent 4 days there going through the as is  middle of construction and finished product

I met with their staff their rehab superintendent along with Closing attorney REaltors etc etc. The kind of deep due diligence one cannot get from a cab ride and talking to a know it all cabbie.. your feed back is not credible in my mind. And to sway others is a disservice to the community.

While your correct  non inhabitable  units will sell for 40 to 50k AS IS these units require 80 to 120k in rehab to get to the point that Alex's company then sells them..

Alex's rehabs are top notch from my due diligence and experience.. homes are taken to the stud's new plumbing new electrical new windows all new kitchens with slab granite under mount sinks bathrooms completely redone in tile.. ( heck they are as nice as my new construction here in Oregon). 

I just wanted to clear the air here since on BP anyone can take pot shots, and as we know there are a lot of newbies on this site that really have no clue as to what they are doing.

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  • Account Closed
    Redwood City, CA · Member since 2014 · 83 posts · 19 votes
    11y

    Yikes. Sorry to hear about your bad experience, Larry.

    0Reply
  • Michael L.
    Investor · East Bay, CA · Member since 2014 · 156 posts · 48 votes
    11y
    Originally posted by @Kate Santon:

    @Fellipe Novaes

    Since I closed last November, rents came in higher than expected and I'm averaging about $750 in cash flow every month after mortgage, expenses and property management fees. It's been good so far. The tenants aren't super quick to pay. One tenant pays on time every month and the other pays a couple weeks late. Property management is generally pretty easy to deal with although they sometimes take a couple days to respond to a question and I wish they could respond a bit more quickly. Other than that, everything has been pretty easy. 

    This had been my experience so far as well.   Since I was working with Alex exclusively, my duplex is managed by his Elite Rentals (EliteInvest) PM.  They can be slow to respond, but they are very professional and get that rent collected eventually.  They have been good at fulfilling the work order requests as well.  There were a couple of minor repairs < $30, but were covered under the warranty.

    1Reply
  • Kate Santon
    Real Estate Investor · Irvine, CA · Member since 2012 · 8 posts · 9 votes
    11y

    Exactly my experience as well.  I'm working with Elite Rentals as well---not PFR.   

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Account Closed stayed with the better half of the partnership, and hope that their properties continue to perform for them long term.

    0Reply
  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    11y

    This is the owner of Profit From Rentals - Justin Ericsson.  I'm available to answer any questions if needed on this post.  My number is (602) 421-0995.  My website is http://www.profitfromrentals.com.  

    0Reply
  • Chris T.
    Investor · Downers Grove, IL · Member since 2015 · 1k+ posts · 955 votes
    11y

    Hello all, my wife and I purchased 2 properties from Justin at Profit from Rentals. As with any rental properties, you have to deal with some issues. We have followed Justin, with his new partnership with another management company, called Letts management. 

    We found Justin Ericsson to be a very up front and honest person. So far he has followed up on his obligations to us. When we purchased our properties in early 2013, our home inspector was very thorough, found numerous issues but Justin had his crew fix most of them. Unfortunately we were also in the middle of the break up between both partners. 

    We still have the 2 properties, and are cash flowing. In my opinion, PFR model is a hands-off approach for newer real estate investors /out of state investors or for non real estate investors who simply want a better rate on return on their money. Unless something drastic happens, we plan to hold these 2 properties for the long haul. Till this day, my home inspector still had good things to say about their work compared to other rehabbers. Even though at that time, I got feedback from PFR that I had one hell of an inspector! He even recommended buying some more properties from them but I am diversifying our real estate portfolio. 

    If you need more feedback, send me a message. Btw, I'm new to BP. Have not done a proper introduction yet, and still absorbing tons and tons of information. Love the podcasts! This is my 2nd post on a forum. 

    1Reply
  • Patrick Shawn Faherty
    Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
    10y

    Good dialogue and feedback.  Any updates from owners or those who chose not to? 

    0Reply
  • Russell Pitts
    Rental Property Investor · Kirkland, WA · Member since 2016 · 60 posts · 19 votes
    10y

    Hi all, what are your thoughts about the Hazel Crest area? B neighborhood?

    0Reply
  • Kenneth Dai
    Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
    9y

    I purchased a duplex from PFR, closing mid-December of 2016.  I'll probably start a running commentary on how my experience goes, but just to answer Patrick Shawn Faherty:

    The property was already re-habbed and rented out when I closed on it.  It was actually a property purchased by another investor last year, who is currently on BP working on selling the other properties he has.

    Working with Justin and his team was good.  Justin helped a lot with getting the closing negotiated for me after the property inspection, and extended the usual PFR 6 month warranty on all re-habbed aspected of the home, even though it was already rented for almost a year.  I did visit Chicago to check out his operations, and the homes really are nicely remodeled.  The neighborhoods within the city weren't particularly scary to my wife and I, though admittedly, they tended to have a least one boarded up home.  We didn't visit any of the single family residences offered by PFR.

    So far, I have been underwhelmed by the property management (Letts Property Management).  I get a lot of help and can easily contact the director of sales and leasing, but haven't gotten a response to a question I sent to the operations director over a week ago.  The actual property manager organization structure appears to be undergoing some changes, and hopefully all will be well once the dust settles.  Like I said, though, I'll keep a running commentary on my experience, either in a blog or in the discussion forum.

    0Reply
  • Kenneth Dai
    Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
    9y
    Quick follow up note: I did end up hearing back from the property management (Letts PM), and they do seem to be undergoing some transition right now. Still, they seem to be on top of keeping the actual property maintained, so we shall see how this all turns out. Side note: property is not currently cash flowing due to issue with one of the tenants' CHA voucher.
    0Reply
  • Patrick Shawn Faherty
    Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
    9y

    Thanks for the posts @Kenneth Dai, I look forward to future updates. 

    0Reply
  • Mike Thoeresz
    Investor · Fresno, CA · Member since 2017 · 27 posts · 12 votes
    9y

    I'm an out of state turnkey investor looking at purchasing a duplex with "Profits from Rentals." Anyone have anymore insight into this company? Anyone work with them directly and have one or more duplex's/triplex's purchased? Anyone purchase properties from them 5+ years ago? Anyone have section 8 tenants in their properties? The numbers look great I just want to make sure investors are seeing the same returns they're projecting and not having too many maintenance issues. If you've had a negative experience and dont want to write about it publically PLEASE private message me. Any insight would be greatly appreciated! Much thanks!

    0Reply
  • Mike Thoeresz
    Investor · Fresno, CA · Member since 2017 · 27 posts · 12 votes
    9y

    @Kate Santon @Michael L. @Robin Halsey @Jay Hinrichs I know I'm replying about 2-3 years late on this thread but I was wondering if anyone else purchased from "profit from rentals?" If so, how was the experience? Any maintenance issues 2-3 years later? Do you have section 8 tenants? How was that process? Do the numbers match up to the projected numbers they quoted you? I'm potentially interested in using them for a duplex in 4-6 months and I'm trying to get as much feedback as possible! If you're worried about writing negative things in a public forum please message me directly. Any insight is greatly appreciated! 

    0Reply
  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    9y
    Originally posted by @Mike Thoeresz:

    @Kate Santon @Michael L. @Robin Halsey @Jay Hinrichs I know I'm replying about 2-3 years late on this thread but I was wondering if anyone else purchased from "profit from rentals?" If so, how was the experience? Any maintenance issues 2-3 years later? Do you have section 8 tenants? How was that process? Do the numbers match up to the projected numbers they quoted you? I'm potentially interested in using them for a duplex in 4-6 months and I'm trying to get as much feedback as possible! If you're worried about writing negative things in a public forum please message me directly. Any insight is greatly appreciated! 

    "Warranty" performance seems to be the BIGGEST complaint that comes up about turnkeys, even among the big players!

    eg. https://www.biggerpockets.com/forums/52/topics/452...

     I reckon "value", vs. "location" might be the next biggest complaint: https://www.biggerpockets.com/forums/12/topics/477...

    Quote: ..."Also some of the South Suburban areas are lower income"... (Read: "war zones"?)

    0Reply
  • Kenneth Dai
    Investor · Fairhaven, MA · Member since 2016 · 100 posts · 88 votes
    9y
    Mike Thoeresz I purchased a duplex with PFR about 9 months ago. I put some of my experience in another thread, but haven't gone back to update recently. Basically, it has been very rocky, especially with the section 8 inspections in Chicago, plus some neighborhood issues and PM issues. What I didn't account for was section 8 abatement, which can actually be more costly than tenant turnaround. There are also posts about being careful when purchasing in Chicago south side, especially as out of state investor.
    3Reply
  • Mike Thoeresz
    Investor · Fresno, CA · Member since 2017 · 27 posts · 12 votes
    9y

    @Kenneth Dai greatly appreciate your input!! 

    0Reply
  • Matthew Moore
    Colorado Springs, CO · Member since 2016 · 84 posts · 48 votes
    9y
    I just read every comment and let me tell you this was a very interesting a helpful read, even if it is a 2y/o post!
    0Reply
  • David Carte
    El Segundo, CA · Member since 2017 · 43 posts · 48 votes
    8y

    @Kate Santon @Michael L. As of a couple years ago it sounded like you were closing on a property with Profit From Rentals, can you share your experiences with them? Thanks.

    0Reply
  • Alberto Fernandez
    Investor · Glencoe, IL · Member since 2015 · 27 posts · 11 votes
    8y

    I purchased 6 buildings from PFR 3-4 years ago. My experience has not been good, much more maintenance expenses, turnover and I had to find a property management solution as PFR property management alternative was not working. Be carful with the performa estimated cost and specially the renovation quality. Renovation quality has a huge impact on the maintenance cost and make it hard to pass section 8 inspections.

    2Reply
  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    8y

    I think it's important for BP members to know that Alberto Fernandez from Glencoe, Illinois is a direct competitor of PFR and was trained in many ways by my team before opening his own shop.  Also his statement that he bought 6 buildings is false.  Alberto was not the buyer of the houses he references and PFR did not manage these buildings.  I'm very sad to write this post having mentored Alberto in the turnkey rental business model.  

    0Reply
  • Patrick Shawn Faherty
    Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes
    8y
    Originally posted by @Justin Ericsson:

    I think it's important for BP members to know that Alberto Fernandez from Glencoe, Illinois is a direct competitor of PFR and was trained in many ways by my team before opening his own shop.  Also his statement that he bought 6 buildings is false.  Alberto was not the buyer of the houses he references and PFR did not manage these buildings.  I'm very sad to write this post having mentored Alberto in the turnkey rental business model.  

     I'm surprised @Alberto does not have a disclosure in his post. (Sorry can't get the @-tag to work). 

     
    0Reply
  • Jeffery M Raju
    Investor · Chicago, IL · Member since 2015 · 7 posts · 1 vote
    8y

    I'm not a customer of PFR, but after working with and learning from Justin Ericsson over the last 3 years, I can speak to his character and passion for his business.

    About 4 years ago a few friends and I partnered together to learn about and invest in real estate. At the time, we were all about 25 years old and had no idea what we were getting ourselves into. We spent the first of those four years networking with other investors through meet-ups, visiting/evaluating deals, and meeting general contractors and real estate agents. We even eventually secured a hard money line of credit…a lot of common things beginners do to learn the real estate business. We weren’t getting a lot of traction finding the right deals or direction for our business at first, so I sought more expertise through an alumni mentoring program run by some friends in a business club I was part of at DePaul - this is how I was introduced to Justin.

    Since meeting Justin, he has helped us and mentored us in countless ways; both in business and in life. From a business perspective, he’s taught us everything we know about turnkey investments and trained us in his processes and business model. First, from giving us an opportunity to gain meaningful experience by letting us manage one of his own rehabs, to later getting us started on our own deals. He was always there with support, direction, and advice - free of charge. Not to mention discounts and resources through his own vendors and relationships. He’s done a great job of showing us the way and letting us learn on our own while helping us avoid the major pitfalls. After working in such close proximity with him and learning how he built and operates his business, I know how much he cares about the quality of his product and PFR’s reputation as a top turn key provider. We're trying to build a similar business with the same principles of quality and integrity we learned from Justin.

    Besides all the tremendous things he’s taught us about business and real estate over the last few years, he is an extraordinary and genuine person. It took a while for us to really get to know him on a personal level, but knowing him has truly has been an inspirational influence on my life. I felt the least I can do is share our story and our experience of knowing and working with Justin/PFR.

    I’m happy to answer any questions about this post on my experience.

    0Reply
  • Sarah Luu
    Santa Clara, CA · Member since 2017 · 12 posts · 6 votes
    8y

    I've purchase two from them and will never do it again. I'm still fixing issues that weren't done properly when I bought years ago.

    2Reply
  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    7y

    Hi Sarah Luu... unfortunately you have mistaken my company with EliteInvest which I don't own or have any interest in.  I have never sold or managed any properties you purchased in Chicago.  I pulled all the public records as proof so the BP community knows this is based on factual information (see below).  I understand you have issues and i'm more than willing to help you in any way i can.  Feel free to reach out to me if you need assistance with these buildings.

    -Justin

    Info obtained from Cook County Recorded of Deeds

    ccrecorder.org

    Recorded 12/17/2015 with Doc No 1535150037 seller ELITE INVEST LLC SERIES 1045 and buyer LUU SARAH

    Recorded 5/9/2016 with Doc No 1614022023 seller ELITE INV LLC SERIES 1142 and buyer LUU SARAH

    2Reply
  • Eric Ro
    Flipper/Rehabber · Gilbert, AZ · Member since 2016 · 1 post · 0 votes
    7y

    I've worked with ProfitFromRentals.com for a number of years- even before the partners split. I have purchased several buildings with ProfitFromRentals.com over the years and had nothing but positive experiences. Justin Ericsson [the owner] is honest and ethical not to mention fun to interact with. The quality of his construction for his houses in the south suburbs of Chicago is superb. My rents are very high and provide positive cash flow. His management company does an excellent job managing the property, I get to be a hands off owner cashing my checks.  Anyone working with ProfitFromRentals will start their journey to escaping the rat race, the sooner you work with them, the better off you'll be.

    0Reply
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