I recently talked to American Wealth Builders and they showed me some properties in Colorado. They say I need to buy the property in cash and are in the order of 40k and get a rental income of $600 plus.
The thing is I am not able to trust them. They don't have any referrals. Their company itself doesn't have much web presence. The management company that they are working with also doesn't have any web presence.
I am afraid if they are going to run away with the money. Or maybe perform for a year or two and then no performance...
Any advice is appreciated.
$40K properties in Colorado that rent for $600? Seems very unlikely. Where do they claim these properties are?
Whoops! I meant Columbus (Ohio). My bad!
@Abhi Jain I did a search on realtor.com and found 15 properties listed under 40K in Pueblo Colorado. They might rent for $600 per month. I would not consider them a worthy investment. Every community has real estate investors, if these properties were a good deal they would be bought and rented locally. Other options aside from Pueblo are the rural areas but know this, that despite the fact that Colorado population is growing, the rural areas are not. Many rural counties, like the rest of rural america, are in decline population wise. These same houses probably sold for $40,000 30 years ago.
I also checked a small community called Rocky Ford that I have remote connection to using realtor.com. It had 2 houses under $40k. They exist and probably do in a surprisingly large number when you look at the whole state.
You are wise to check out these people.
You have to be very careful in Columbus. There are many companies selling 'deals' on $40k/home properties with $600-$700 rents but the vacancies are extraordinary. Essentially they are buying properties in bad areas for $10k, rehabbing them for another $10k while installing a tenant, and then doubling their investment.
If you're looking at properties in Franklin county (Where Columbus is) I would visit there and go through the areas you're looking at. In many cases you can be on one side of the road and be in a great area (Near campus) and on the other side of the road have 10%-20%+ vacancies (Linden).
if your already this nervous then you should probably go with your gut instinct so you don't worry yourself.. there are literally hundreds of turn key providers in the US..
you may want to do a little more shopping and research before you hone in on one company.. I did some lending in Columbus in the day.. I like the city.. however like any of these areas the good renters are not always were the cheapest houses are.
I wouldnt touch that company with a 4 foot pole man. Everything you said all points to bad! Dont use them! Red flags all over.
Yeah this just sounds shady.
@Abhi Jain ,
I've bought two homes in Columbus from American Wealth Builders. One I've owned for a year and the other for more than six months. I've had zero issues. I've been to Columbus to see the homes after the purchase. I did some training with the owner on wholesaling and so visited their corporate headquarters. I've met the property manager who is terrific. I know their company very well and I wouldn't say you have any worries. They are the real deal.
I should mention that together, my boyfriend and I own 15 houses in three states. The ones from AWB are the only ones that have had no issues. All renovations were done by them. The renters were found by them. The ROI is actually better than predicted because we haven't had vacancies or repairs as of yet. I can tell you that is not the case with our other properties.
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