JWB Real Real Estate Capital, Can anyone comment on performance?

Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes

Hi,

I'm beginning the process of expanding my portfolio out of my home sate and have been diligently researching turn key providers. I have other property in FL and often visit the state. It looks like JWB has a very nice finished product in a pretty good market (Jacksonville FL) but I'm wondering how well they are on the longer term management side. Has anyone in the BP community owned and had them manage for more than 5 years? How has the longer term vacancy/collections rate been? Has the completely renovated home you purchased held up well and minimized ongoing expenses as expected?

Thanks in advance!

Adam

0 Reply

247 views

Most Popular Reply

John C S.

Flipper · Poconos, PA · Member since 2015 · 198 posts · 42 votes

10y

Hi guys has any worked with Memphis invest before?

3 Reply

See this reply in the discussion

21 Replies

Jump to latestLatest

Sort by

Sarah Shockley
Rental Property Investor · Jacksonville, FL · Member since 2012 · 114 posts · 98 votes
11y
Hi Adam,
I'm an investor and realtor, and currently live in Jacksonville. I purchase, renovate, and manage my own rentals, but would like to eventually hire out the property management work. I've kept an eye on JWB for this reason.
I haven't used them to manage any of my rentals - however, there is a house just down the street from me that they manage, in the Murray Hill neighborhood. I drive by it almost every day, and have noticed high tenant turnover (tenants staying less than a year) and long periods of vacancy in between.
On the other hand, the house and yard are consistently kept up.
My own properties in the area are good comps with regard to location and amenities, and I have high demand for them, and very low turnover. I haven't been too impressed with JWB for this reason.
Just my two cents though. Might just be one bad apple!
2 Reply
Orlando Spencer
Real Estate Broker · Jacksonville, FL · Member since 2015 · 96 posts · 31 votes
11y
Hi Adam. Just as Sarah Shockley mentioned, JWB appears to dress up properties well inside and out. However, they've managed a few properties in the Highlands area that cause question regarding occupancy. A brief example, the renovations in this neighborhood are somewhat lengthy and the properties still remain vacant for another month or two on top of that.
Like Sarah, I'm only speaking to a specific neighborhood in Jax. Where do you intend to invest in Jax? Finding out a major management company's performance in the zip/neighborhood you desire to invest may trump any opinion we can provide.
Not sure what your specific financial goals are over the +5 years, but I'd think hard before considering vacancies over three months annually with any management company.
Best of luck and if I can help, let me know!
0 Reply
Adam Anderson
OP
Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes
11y
Thank you very much, this feedback is great! They promote a 93%-97% occupancy rate with an average lease term of 27 months. The advertised return estimates include expected tax benefits and principal reduction which I personally never include in my forecasting. I look at these as bonuses and not part of my return. Im looing at several other providers and managers as well
0 Reply
Eric Mullen
Investor · Jacksonville, FL · Member since 2014 · 11 posts · 5 votes
11y
Originally posted by @Adam Anderson:

Thank you very much, this feedback is great! They promote a 93%-97% occupancy rate with an average lease term of 27 months. The advertised return estimates include expected tax benefits and principal reduction which I personally never include in my forecasting. I look at these as bonuses and not part of my return. Im looing at several other providers and managers as well
Absolutely agree, that should be outside of the quoted ROI. I looked into JWB and was very impressed with the people there, but not the numbers. Low estimates on Occupancy and Repairs, high mgmt fees and purchase price. I simply thought that I could get into a home at a lower cost myself(and outsource management) so decided against them.
2 Reply
Jennifer Rivera
Investor · Menomonee Falls, WI · Member since 2015 · 4 posts · 6 votes
10y
Mly husband and I have purchased two properties from JWB in the past two years and have been pleased with the results thus far. We live in Wisconsin and did a lot of online research and landed on Jacksonville. We have one property where the tenant will be moving out in early January so we'll see how long it takes to repair and re-rent. The rent has always been paid in a reasonable amount of time and we receive our portion within a few days every month. Overall we've been happy working with them. They flew us down to Florida and drove us around for a day to look at various properties. Prior to purchasing we did our due diligence and spoke with several long-time investors of the company who had only positive feedback for us. I'm hoping that when the time comes to re-rent our properties that goes smoothly.
2 Reply
Marc Bracy
Investor · Jacksonville, FL · Member since 2015 · 54 posts · 6 votes
10y
I worked for a contractor managing the rehabs of many many JWB houses. They have a formula that seems to work okay. They are really great at purchasing 2/1 and converting to 3/1-3/2. That drives the cost of the rehab way up - The areas that I had experience working in for them were all very questionable which would explain some of their high turnover. ROI wise I haven't heard of any real legitimate complaints so as long as you run the numbers and they work for you then I'd say go for it. As far as the quality of their rehabs that I was involved in, I completely approve. They take some real monsters and turn them into very respectable nice little houses for their area. They always did what was necessary which is certainly not the case with other turn key providers!
1 Reply
Maxwell Lee
Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
10y
I just wrote this in another thread.

Full Disclosure: In many ways I am a direct competitor.
JWB is certainly legit. They've done a good job of building up their business in Jax and they capitalized on a hot market. They were also at the forefront of a national trend to build new SFH for rent. Check out WSJ for an article about them a few years back.
As a turnkey I imagine they are trustworthy and reliable. But one complaint I've heard is their deals aren't that great for our market. If that's true it makes sense...they have the capital to keep the best deals for themselves.

1 Reply
Account Closed
Rental Property Investor · NJ · Member since 2014 · 60 posts · 32 votes
10y
Originally posted by @Maxwell Lee:

I just wrote this in another thread.

Full Disclosure: In many ways I am a direct competitor.
JWB is certainly legit. They've done a good job of building up their business in Jax and they capitalized on a hot market. They were also at the forefront of a national trend to build new SFH for rent. Check out WSJ for an article about them a few years back.
As a turnkey I imagine they are trustworthy and reliable. But one complaint I've heard is their deals aren't that great for our market. If that's true it makes sense...they have the capital to keep the best deals for themselves.

I'm in the midst of the introductory phone calls with the CEO. Any further feedback?
0 Reply
Maxwell Lee
Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
10y
No, not really anything to add. I have not had any direct interaction with them whatsoever. Have contracted with people who have done business with them, and also spoken with a handful of investors who have considered working with them (some of whom did decide to do business with me instead) so that's the basis for my opinion.
1 Reply
John C S.
Flipper · Poconos, PA · Member since 2015 · 198 posts · 42 votes
10y
Hi guys has any worked with Memphis invest before?
3 Reply
Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
10y
I went on their site; I always find it amusing when people give themselves flashy titles in small companies such as CEO, CFO, COO, etc. I think from now on, I am going to refer to myself as simply as Commander. :)
901-848-9028
3 Reply
James WachobBusiness Member
Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
10y
Commander Alex..... has a ring to it!
1 Reply
Adam Anderson
OP
Developer · Palm Harbor, FL · Member since 2015 · 307 posts · 96 votes
10y
After throughly kicking the tires with JWB, I decided not to invest with them. I have nothing negative to say and their operation seamed to be reputable and respectable. The ROI just wasn't there for me and I'm not comfortable counting on appreciation.
1 Reply
Ryan Thompson
Pittsburgh, PA · Member since 2017 · 4 posts · 0 votes
9y
@Jennifer Rivera how did the re-leasing process go when the tenant moved out last January? How much rehab was required? How many days/months vacant? Would love to hear how it went. Thanks!
0 Reply
Jennifer Rivera
Investor · Menomonee Falls, WI · Member since 2015 · 4 posts · 6 votes
9y
Both of our properties have been turned over and re-leased within the past year or so. The first turn had some issues, but we were able to work through that and got it rented out with a three year lease within a couple of months. The tenant may have lost a job and did not pay the last month or two of rent and we were not able to recover any money from them for some repairs that should have been their responsibility. So the turn cost us more than we expected, but I guess that's one of the risks involved with investing in real estate. And the second property turn went smoother. It was vacant for about 3 months, but that's because we ran into bad timing with the holidays at the end of the year. It's now re-leased for three years.
0 Reply
Kenneth Mooney
Rental Property Investor · Augusta, GA · Member since 2016 · 348 posts · 171 votes
9y
All I know about JWB is that I had a potential client that had it narrowed down to the brokerage I work at, JWB, and another one and we got the business. Their pro-forma looked a little mis-leading and properties appeared to be close to retail. Other than that I know very little to nothing about them. Hope that helps!
0 Reply
Rebecca K.
Gilroy, CA · Member since 2016 · 41 posts · 21 votes
7y
To note, JWB charges one month's rent to place new tenants.
1 Reply
Gregg CohenBusiness Member
Rental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
6y
I'm one of the owners of JWB Real Estate Capital and would be happy to answer any questions you may have.
904-677-6777
Gregg Cohen, Not Your Avg Investor Show4.6237 Reviews
Website View Page
0 Reply
Paz Patel
Member since 2018 · 4 posts · 2 votes
6y
@Gregg Cohen
Hi
I have worked with Gregg and Alex at JWB for over 5 years on a number of their investment vehicles and will be continuing to do so based upon their integrity and honesty in resolving contentious issues that always come about between Investors and Tenants. Ashley and Lauren have always been responsive to any questions that come about and even through current difficulties they have delivered. My suggestion to anyone interested in working with JWB is to visit them in person and have the honest discussions face to face.
1 Reply
Gregg CohenBusiness Member
Rental Property Investor · Jacksonville, FL · Member since 2011 · 143 posts · 136 votes
6y
Thanks so much for sharing @Paz Patel! We've loved working with you as well. Seems like only yesterday you were in our office purchasing your first turnkey property with us!
904-677-6777
Gregg Cohen, Not Your Avg Investor Show4.6237 Reviews
Website View Page
0 Reply
Theresa Fitzpatrick
Member since 2018 · 1 post · 0 votes
4y
@Gregg Cohen

I am a client - for several years and several properties and I am requesting a callback from Gregg.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.