Opinions on Marshall Reddick Real Estate?
San Jose, CA · Member since 2016 · 2 posts · 0 votes
Opinions on Marshall Reddick Real Estate?
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Newport Beach, CA · Member since 2015 · 10 posts · 9 votes
9yHi @Patrick Shawn Faherty, nice to meet you. I understand you are working with my colleague Parker Roberts, one of our excellent Real Estate Advisors. I have personally purchased 4 investment properties with Marshall Reddick....two new construction SFH's in Indianapolis that I purchased in 2011/2012, a turn-key home that I purchased in Memphis in 2013, and a newer construction duplex in Lehigh Acres, FL that I purchased in 2015. After several years of being a client of MRRE I was fortunate enough to become a Real Estate Advisor myself. In response to your question, I encourage you to read that thread. In the thread you'll read that Marshall Reddick, the person, who retired 3 years ago, was hit harder by the real estate crash of 2008 than just about anyone. I can tell you that there was never a class action lawsuit, and the Chapter 11 restructuring that went into effect in 2009 ended in 2014. Today, our company is owned and operated by Ross Nelson and Scott Pastel. I encourage you to look both of them up on LinkedIn if you'd like. They purchased the company in 2014 when Marshall retired. I'd also recommend reading some of the 55 reviews on our Yelp page, and the over 60 reviews on our Zillow team page. Lastly, I'm sure Parker would be happy to personally connect you with as many of our clients as you'd like to speak with directly. We take extremely good care of our clients, and there are hundreds of case studies both online and offline to show for it. Thanks for your question and we are happy to address any concerns you have.
22 Replies
- Livermore, CA · Member since 2016 · 72 posts · 11 votes10y
Hi @Madhavi Ganti, I have purchased a property with Marshall Reddick in Indy and I will say their advisors will walk you through the whole process. One of their claims is that they have built a network for you in areas that are good for REI. I would make sure that you vet their preferred partners. In some cases they might only refer you only to one. Make sure that you are comfortable and confidant that they are the right business to work with. I have had a couple of issues, but that might be specific for my situation.
- Newport Beach, CA · Member since 2015 · 10 posts · 9 votes10y
Hi @Israel R, it was a pleasure working with you as your Marshall Reddick Advisor on your first investment property you recently purchased in Fishers, IN! I see that your home is currently advertised at $1,295 even though we had conservatively put $1,250 in our rental projections. I hope you find it helpful that we included a 20% reserve estimate for maintenance and vacancy, and even if the property rents for the $1,250 that we projected you will still get over $100/month positive cash flow. I want to reiterate that our preferred partners i.e. local property management are 3rd party referrals and as I mentioned to you these are simply recommendations that we have worked with in the past, however you have the ability to choose them or go with your own option. It’s still only been 6 weeks since you closed escrow and even less since the repairs have been finished, so let’s give it some time before drawing any conclusions. I am totally fine with you choosing another option though if it’s what is best for you. Please know that Marshall Reddick has no interest in which property manager you choose, and I am here to help if you would like other options at any time. I look forward to helping you optimize the performance of your new rental property and continuing to build your portfolio for years to come.
- Livermore, CA · Member since 2016 · 72 posts · 11 votes10y
Hi @Christin Knight, it was a pleasure working with you as well. I was just stating that the 3rd party referrals are not always going to have the investors best interest at heart. This is why it is important to have the advisors like you to pursued the 3rd party referrals to provide the best product/service for the investor. I look forward to working with in closing this deal and get this property rented and I am so eager to build my portfolio. If you prefer, we can talk offline about my thoughts.
- Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes9y
Any other opinions on MRRE? Are their bankruptcy issues well behind them?
https://www.biggerpockets.com/forums/79/topics/28635-marshall-reddick-class-action-lawsuit
- Newport Beach, CA · Member since 2015 · 10 posts · 9 votes9y
Hi @Patrick Shawn Faherty, nice to meet you. I understand you are working with my colleague Parker Roberts, one of our excellent Real Estate Advisors. I have personally purchased 4 investment properties with Marshall Reddick....two new construction SFH's in Indianapolis that I purchased in 2011/2012, a turn-key home that I purchased in Memphis in 2013, and a newer construction duplex in Lehigh Acres, FL that I purchased in 2015. After several years of being a client of MRRE I was fortunate enough to become a Real Estate Advisor myself. In response to your question, I encourage you to read that thread. In the thread you'll read that Marshall Reddick, the person, who retired 3 years ago, was hit harder by the real estate crash of 2008 than just about anyone. I can tell you that there was never a class action lawsuit, and the Chapter 11 restructuring that went into effect in 2009 ended in 2014. Today, our company is owned and operated by Ross Nelson and Scott Pastel. I encourage you to look both of them up on LinkedIn if you'd like. They purchased the company in 2014 when Marshall retired. I'd also recommend reading some of the 55 reviews on our Yelp page, and the over 60 reviews on our Zillow team page. Lastly, I'm sure Parker would be happy to personally connect you with as many of our clients as you'd like to speak with directly. We take extremely good care of our clients, and there are hundreds of case studies both online and offline to show for it. Thanks for your question and we are happy to address any concerns you have.
- IT professional · Sunnyvale, CA · Member since 2015 · 23 posts · 13 votes9yHi Madhavi Ganti I am an investor from the Bay Area like yourself. I've been a BP listener for a couple years now. Have educated myself on topics related to real estate like taxes, asset protection, evaluating a property, and so on. I know there are many good turnkey remote real estate companies. I've followed some of their podcasts, like Clayton Morris, Norada Real Estate, Real Wealth Network. I invested through Marshall Reddick because I attended their seminar and they didn't appear very sales-y to me. I just purchased a duplex in FL through them, and invested my self directed IRA money. Overall my experience has been great. Be aware though that I'm just starting my property management journey through them, so will have a better update about cash flow in 6-12 months. I do plan to invest more through MR. If you want to discuss, send me a pvt message. Nav.
- San Jose, CA · Member since 2016 · 2 posts · 0 votes9y
This is all great information! Thank you all for your answers!
- Fredericksburg, VA · Member since 2016 · 190 posts · 64 votes9y
Thanks @Christin Knight.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
@Israel R. if you had to vet the provider, doesn't that pretty much eliminate the role that MR plays? Seems if you were going to vet a provider, then you would buy direct and get a better price.
- Newport Beach, CA · Member since 2015 · 10 posts · 9 votes9y
Hi @Alex Craig, I appreciate your comment however you seem to be misinformed about our business model. The turn-key providers that we work with price all of their homes the same whether we provide the client or the client finds them on their own. That is one of the many benefits to working with us, there’s no additional cost to the investor and they get invaluable, unbiased coaching and advice from Advisors like me for absolutely no cost. Moreover, I would never tell an investor not to do any due diligence, and I think it is important for the investor to vet whoever they are working with so they feel more comfortable, whether it be a broker, property manager, turn-key provider, etc. Simply telling someone not to vet a company because they are a referral from a trusted source is a little unreasonable in my opinion. By the way I am familiar with your company, and it’s nice to meet you albeit it online. I would recommend checking out the FAQ section on our website so you are more familiar with our firm. Wishing you the best.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
@Christin Knight I did not mean to come across as undermining your services. I think there is value to the affiliate to both buyer and TK provider. For a TK provider who lack marketing or brand strength, but does a good job, a company like MR can help that individual grow their business. We do business with a few affiliates, but they now represent only about 20% of our business. For the buyer, I realize they can use affiliates to act as 3rd party to leverage affiliates large buyers list to make sure the TK provider lives up to the expectation. Also I understand the affiliate can fast forward a buyers entry into multiple markets quicker. My comment mostly came from my experience that the affiliates we have worked with did the vetting and the buyers came to use ready to put properties under contract with little conversations with our in house Realtor. Basically, the buyer came to us with the thought the affiliate did the vetting and there was no reason to vet any more because of a proven track record of the provider. That has been my experience and since we have never worked together, I figured you all were set up the same way. Sounds like you all do vetting, but want to, for a lack of a better term, CYA. I get that and makes sense. As for the pricing, I do understand the price is the same, but almost all TK providers I network with who work with affiliates will pad the price, including myself. Not the entire affiliate fee, but a portion. We will pad anywhere from 1k to 3k to cover affiliate fees. The reason we have to do that is because we have past affiliate clients who visit our site instead of the affiliate site to find their next deal. The margins are simply not their for reputable TK provider to pay 5 to 6k a transaction, especially if the buyer wants to buy multiple deals. That being said, we will discount to our organic clients. We disclose that to our clients who come through affiliates when they ask for discounts and no one has ever walked away from a deal with that disclosure. The one thing I wish affiliates would disclose is that once you buy 1 deal through them, they are lifetime property of said affiliate. Maybe MR is different. Sometimes it puts us in a weird position if we list a property on our site where we get a standard Realtor commission and have to tell an past affiliate client they can't buy the property.
Bottom line, there is value to what you all do and I was not trying to undermine the value. It is a good service for new investors who need coaching and help determine the best market.
- Newport Beach, CA · Member since 2015 · 10 posts · 9 votes9y
Hey @Alex Craig, I appreciate where you're coming from and that might make sense for most "affiliates," however we are not just an affiliate. We are a licensed California Broker, Property Manager, and Private Money lender. We represent buyer and seller, landlord and tenant, and borrower and lender. Outside of California, we have a small network of licensed 3rd party Realtors and Property Managers in 10 different markets, each one licensed in the state they do business. We actually only work with 2 turn-key providers, one in Memphis and one Clarksville. Outside of those two markets, we work with licensed agents who can help our clients buy or sell any type of residential property possible in their market, turn-key or not turn-key.
My Role as a Real Estate Advisor is completely unbiased to the location our clients buy, the type of property they buy, and how they buy it. We use in-depth methodology to determine the financial goals of each individual and build a long-term investment plan that fits their unique situation. The best part is, we do all of this complimentary. Not just to attract new clients but build a life-long relationship with them until they will their properties down to their heirs. We started in 1979, and will be around for a lot longer. Our services are equally as valuable to seasoned investors as they are to beginning ones, and many of our clients who purchased property with us in the late 90’s and early 2000’s have been selling their properties over the last several years as they are at that point in their life where they are ready to exit out of real estate.
In regards to the turn-key company we work with in Memphis, there is no padding and the price on their website and in their marketing is the price you pay whether you come through Marshall Reddick or you find them on your own. That was a major sticking point for us years ago when we chose them. I'm sure we could go back and forth for days, but we could probably get a lot more insight by looking at each other's websites. Thanks for the commentary, and I look forward to talking to you next time.
- 9yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
@Christin Knight clarksville, TN? Interesting. How did you land there? Nice city, never would have thought TK there. I have always said, the model works anywhere and sometimes it works really well in "under the radar" cities. That is why I have always thought Little Rock does so well. I am in Knoxville this week checking out this market. I would bet 95% on Bigger Pockets have ever head of Clarksville or Knxoville.
- Investor · Huntington Beach, CA · Member since 2015 · 2 posts · 1 vote9y
Hello Madhavi,
I have purchased 3 properties through MRRE network. I have been so very impressed with everything they have done for me so far. Every step, from the advisor to the preferred partners that helped me in the process. I can't say enough about the network and have referred many to friends and family to them. For me, they have been GOLD. Hope you find the same experience. Happy investing!
- Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes9yVick Toombs I am an experienced investor. I have 8 units and in process to get 6 more. They are all 3000 miles away. None of them turnkey either. 2 I have never seen. I would NEVER tell somebody to stay within a 1 hr drive. I put my teams together,created an LLC, get my financing, have my taxes prepared, and buy and sell property's all with people whom I've at best met for a couple hrs or mostly never met in person. I do my due diligence and vet these people then use the recommendations given me by these few people. Not everybody's out to get you but you need to be able to tell the bad guys from the good guys. You use due dilligence to know the difference. RR
- 9ySally FairchildPro MemberInvestor · Newport Beach, CA · Member since 2016 · 106 posts · 84 votesI've been involved with Marshall Reddick beginning in 2016. I have found them extremely trustworthy, prudent, knowledgeable, professional and responsive. I have made very nice ROIs with them. I've learned a lot, and following their advice received 10% to 12% returns on prudent investments. I pay attention and verify. I trust them and their advice but I also realize there is risk and the final decision is mine. 2016 was a good year.
- Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes9y
@Vick Toombs what's your expierence or grounds to know about out of state investing?? Mines on my profile. RR
- Brooklyn, NY · Member since 2016 · 61 posts · 13 votes9y
Originally posted by @Nav Singh:
Hi Madhavi Ganti I am an investor from the Bay Area like yourself. I've been a BP listener for a couple years now. Have educated myself on topics related to real estate like taxes, asset protection, evaluating a property, and so on. I know there are many good turnkey remote real estate companies. I've followed some of their podcasts, like Clayton Morris, Norada Real Estate, Real Wealth Network. I invested through Marshall Reddick because I attended their seminar and they didn't appear very sales-y to me. I just purchased a duplex in FL through them, and invested my self directed IRA money. Overall my experience has been great. Be aware though that I'm just starting my property management journey through them, so will have a better update about cash flow in 6-12 months. I do plan to invest more through MR. If you want to discuss, send me a pvt message.
Nav.
Hows is your property doing ,any updates to the good or the bad ?
- IT professional · Sunnyvale, CA · Member since 2015 · 23 posts · 13 votes9y
@Joe Bruck. The positives: great property management company, very responsive, smoothly managed tenant turnover and repairs. To watch out for: make sure you understand that you won't get the rents used in the MR calculations from day one. Existing tenants are at lower rents, and it may take 3, 6 or 12 months for tenants to leave and for rents to be raised.
Make sure you have a great property management company. I've had experiences with a bad one (outside MR) and a good one. I totally believe in the adage (if it is one) that an average property with a great PM is better than a great property with an average PM. My PM got me rents slightly higher than expected upon tenant turnover: $975 each side compared to the expected $925 or $950. And turnovers also involve expenses. So expect your first year cash flow to be much lower than expected, or even negative. That's all I have so far, about 9 months in. I can do another update at the 2 year mark :-)
- 9yKim Meredith HamptonBusiness MemberReal Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votesMadhavi Ganti I worked with Marshall for over 10 years as a third party property management company, and absolutely loved his process, prospects and program that helped investors build their real estate wealth. Although I am not familiar with the new owners, the process is great. I operate in central Florida; Orlando, Tampa and Melbourne. Here to talk if you need any real estate or property management assistance for investments
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