Anyone used US Real Estate Equity Builder in KC MO? Need advice.

Ask About A Real Estate Company
9yFollow

Anyone used US Real Estate Equity Builder in KC MO? Need advice.

Joe Koppel
San Diego, CA · Member since 2017 · 70 posts · 23 votes

Hi, I am considering purchasing several Turn Key Properties  from US Real Estate Equity Builder in Kansas City Mo. I am a new real estate investor and just trying to do my due diligence so I don't make a bad move. I am in California so I would be doing this remotely.

Can any of you give me some reviews, good or bad?

Any good advice? Other ideas? I will have about $100k to invest when my escrow closes here soon.

Just looking to buy and hold and collect rent. No rehab or flipping.

Thanks, Joe

1Reply
61 views

Most Popular Reply

Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

@Fiona Matthews  what total BS.. your not a client but somebody who knows somebody is or was and maybe... your simply not credible... Anyone who have followed my 13,000 plus posts and almost 12,000 votes compared to your 2 posts.. knows I am as agnostic on turn key markets as anyone and would never recommend buying lowest end ghetto type homes.. there is no doubt that their are companies out there that have or do operate in this manner.. USBREEB simply is not one of them.

Is there tenant risk in owning a rentals  hell yes  any rental in any state.. I have had A class brand new homes trashed personally... but to claim its their business model to deceive and ruin investors investments by simply placing fake tenants in their properties is just way off the mark..

It sounds like you have a personal grudge frankly for whatever reason.

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
5Reply
See this reply in the discussion

68 Replies

Jump to latestLatest
  • Jarred Curry
    Investor · Black Hills, SD · Member since 2015 · 30 posts · 15 votes
    9y

    Check out @John Wheeler with Capital Equity Partners. I'm currently working on a flip with him in KC but he sells turn-key investments as well. Best of luck!

    0Reply
  • Rachel Bier
    Investor · Napa, CA · Member since 2016 · 77 posts · 80 votes
    9y
    We bought 7 SFR from them last year and have had a great experience so far! Feel free to PM me if you have any particular questions or concerns.
    1Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Joe Koppel  Are you planning to visit KC & see the homes and neighborhoods of this company before you invest?  I would highly recommend doing so.  

    3Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y

    Hi Larry no I live and work in San Diego CA and don't plan on visiting

    0Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    9y
    Hi Joe, I went to KC a few weeks ago and met with this company. They are very nice and professional and they all seemed happy with their jobs. They were happy to meet my partner on a Saturday morning. I went and checked out several of their rehabs. I would not buy the C class properties in 64130 but some people like them. I've decided to buy and rehab my own properties in KC but I think that buying TK with them is a fine choice. I'd only take the Bs and not the Cs. Make sure you run the numbers yourself because I think that their numbers are not realistic for capex. Search the zip codes and neighborhoods that you're buying in and make sure that you get feedback on the locations from those familiar with KC in BP. Happy to meet up for coffee in SD to talk KC this week if you'd like. I live in OB and work in Bay Park. Best of luck! Lee
    Podcast Guest on Show #373
    2Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y
    Originally posted by @Lee Ripma:

    Hi Joe,

    I went to KC a few weeks ago and met with this company. They are very nice and professional and they all seemed happy with their jobs. They were happy to meet my partner on a Saturday morning. I went and checked out several of their rehabs. I would not buy the C class properties in 64130 but some people like them. I've decided to buy and rehab my own properties in KC but I think that buying TK with them is a fine choice. I'd only take the Bs and not the Cs. Make sure you run the numbers yourself because I think that their numbers are not realistic for capex. Search the zip codes and neighborhoods that you're buying in and make sure that you get feedback on the locations from those familiar with KC in BP. Happy to meet up for coffee in SD to talk KC this week if you'd like. I live in OB and work in Bay Park.

    Best of luck!
    Lee

     Lee I think it would be great to meet with you and talk real estate because I am new at this. I live in City heights. Maybe we could meet at Starbucks in Point Loma (Rosecrans and Midway) Please PM me. I am off work tomorrow or?

    0Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    9y

    @Joe Koppel I will be in KC tomorrow and will be meeting up with USREEB on Tuesday. If you would like to ask some specific questions, let me know. 

    1Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y
    Originally posted by @Avi Garg:

    @Joe Koppel I will be in KC tomorrow and will be meeting up with USREEB on Tuesday. If you would like to ask some specific questions, let me know. 

     Are you buying properties there? Or have you bought some already?

    0Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    9y

    @Joe Koppel Looking to buy. Checking out the area to get first hand knowledge

    0Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y
    Originally posted by @Avi Garg:

    @Joe Koppel Looking to buy. Checking out the area to get first hand knowledge

     There are a few questions I had that you might want to ask them...

    1. The price that they say a property is for sale for is it expected that you counter offer? Or is that the price?
    2. Are other people trying to buy the same property?
    3. They refer to a property being "Under Contract" what does this mean? When you buy the property you are not entering into a partnership are you? Other than just the property management piece.
    4. If you buy a property that does not have a tenant how long does it generally take to get one?
    5. Is there a good demand for rentals?
    6. How can you determine if it is a good area or not?

    Just a few questions I'm sure you have many of your own. Maybe you can share with me later what you find. Thanks, Joe

    1Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    9y

    @Joe Koppel

    I did not ask those specific questions but here's the answers to them anyways:

    1. Most of the TK properties are sold at the advertised price. However if you are buying cash or multiple properties you can negotiate. Also do your own due diligence to make sure you are not overpaying for the property.

    2. Many people are buying properties from them. However if you go on a contract with them, no one else is allowed to offer on them. Similar to buying from MLS - until your offer is accepted its open to all buyers.

    3. Under contract means someone's offer has been accepted and the property will be sold to that person. No partnership.

    4. Usually 2-3 weeks to get a tenant in. Due to new jobs being created in the city, there are lots of people coming in as well as people leaving their existing rentals in KC to find another one.

    5. It appears so

    6. Ask local KC investors on BP and go see for yourself. 

    I am not ready to buy yet but I wanted to see the build quality. Being very picky about details, I notice the small things like when the property is advertised as newly rehabbed (new doors, appliances, cabinets etc) more often I see dings on the brand new door (I saw in one property in KC) or cabinet doors not aligning etc. Since I am paying the price for everything being new, I want them that way. An inspection won't notice these things.

    Conclusion: They do a good job in their rehab but I would definitely see before I buy.

    3Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y

    Thanks Avi, I appreciate the feed back. I was all set up to buy one but I hit a snag with financing. I have to wait for my divorce decree to be issued by the judge so they know how much support I am on the hook for but this should all be done in a couple months and I will pursue some properties then,

    1Reply
  • Fiona Matthews
    Richardson, TX · Member since 2017 · 2 posts · 3 votes
    9y

    I would stay away from this group. Although their rehabs are reasonable and look nice on the surface, they cut costs where they can, which means things break down often (there goes your ROI). Their product is overpriced, and usually re-purchased from distressed owners who originally bought the same property through their previous iteration "AREI" (American Real Estate Investments). They don't really know how to manage properties properly, sometimes paying un-screened tenants to move in so they can offer a product as "turnkey". Many first-time investors have been caught with their pants down, not expecting that after the first lease is up, their tenant has trashed the house and moved out. Bottom line, the property might be OK, but you could also do the work yourself the hard way (find a property, get it inspected, interview contractors to rehabs it, and locate a legitimate, licensed and insured PM to manage the rehab and place a tenant). You'll save a bundle.

    1Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Fiona Matthews It sounds like you have some direct experience with this company or AREI.  Is that right?  Have you been a buyer or know some with them?

    1Reply
  • John Larson
    Professional · Dallas, TX · Member since 2016 · 54 posts · 33 votes
    9y

    I am the managing partner at AREI. Some of the members of USREEB used to work with us in our KC office. We are not affiliated. 

    0Reply
  • Jared Smith
    Lender · Huntington beach · Member since 2017 · 21 posts · 5 votes
    9y

    I've been researching this as well for the last month. Like you I'm looking to do the same from a distance.   From what I've noticed SOME of these "turn key" companies  buy a bundle of homes from a bank then resell them at a premium.  For instance, I saw a home in Ohio that was selling for 60k when the market only supported 35k maybe 40k in a so called B area.  The seller turned out to be the management company.  Yes, you might see rental income of 7-800 but remember your eventually going to sell.  Selling at a loss is never fun 

    My advice is do your research on the area and don't rush into anything.  This website seems to be very informative.  

    2Reply
  • Sean Tarpenning
    Turnkey Investment Provider · Kansas City, MO · Member since 2015 · 1k+ posts · 116 votes
    9y

    @Fiona Matthews Your critique is far off considering you have never bought a property from USREEB and we currently have no relations with you. We sold over 250 turnkey properties in 2016 and have already sold 100 properties in the year of 2017. We have over 600 properties in our property management company that are all performing. Often times our properties appraise 5-10k over the sales price. If you have any problems with AREI, I think you should take it up with AREI.

    1Reply
  • Fiona Matthews
    Richardson, TX · Member since 2017 · 2 posts · 3 votes
    9y

    @Larry Fried I have not personally dealt with USREEB or AREI in KC, but I have many acquaintances who have over the years, and their experience has generally been awful.  Obviously, any buyer should do extreme diligence when purchasing anything from anybody, but I feel that the "burn and churn" approach adopted by this group is not really something anyone would wish to enjoy.  Note, they're not the only ones.

    @Sean Tarpenning You're right, I have never bought a property from USREEB in Kansas City, but it's for the reasons listed in my post.  Congratulations for selling so much product, but I just wish your group exhibited better ethics.  Your response didn't really address any of the comments in my post, though .. 

    To the community:

    This is not a witch hunt - I've just found too often that people are reluctant to say what's really on their minds in public, and so therefore I decided to say something.  I'm sure there are people who have had positive experiences with USREEB or any other "turnkey" provider - all power to them - but regardless of whoever you choose, do your research on the company, the people, and the product before spending your hard-earned cash.  My two cents.

    2Reply
  • Avi Garg
    Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
    9y

    @Fiona Matthews you created your BP profile 2 days back to post in this thread only? 

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Fiona Matthews  what total BS.. your not a client but somebody who knows somebody is or was and maybe... your simply not credible... Anyone who have followed my 13,000 plus posts and almost 12,000 votes compared to your 2 posts.. knows I am as agnostic on turn key markets as anyone and would never recommend buying lowest end ghetto type homes.. there is no doubt that their are companies out there that have or do operate in this manner.. USBREEB simply is not one of them.

    Is there tenant risk in owning a rentals  hell yes  any rental in any state.. I have had A class brand new homes trashed personally... but to claim its their business model to deceive and ruin investors investments by simply placing fake tenants in their properties is just way off the mark..

    It sounds like you have a personal grudge frankly for whatever reason.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    5Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y

    Wow I didn't mean to start something and bring the claws out by creating this post but I am learning a lot through it as a newbie. Thank you all for your input. ;-)

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Joe Koppel  lots of hidden agendas on BP.... and any post regarding Turnkey can be quite adventurous....

    Its one of the reasons Brie and I started turn key reviews.. so folks like you would have a website that does not have a squeeze page to shop all the turn key companies in the US>  

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Kevin Kite
    Investor · Los Angeles, CA · Member since 2016 · 69 posts · 46 votes
    9y

    I bought a turn-key from USREEB about 8 months ago.  It was my first purchase so I understand how nervous you are.  I took a trip out there and I would not advise spending 100k without looking first.  My trip from LA for a three days in KC cost only about $600.  That is a small price to pay when risking 100k.  

    I setup a visit with a couple turn key providers and also had a real estate agent show me many other homes.  I decided not to buy with an agent because I did not feel comfortable doing a rehab from LA.  

    When looking at the numbers I could clearly see the chunk of money the turnkey's made off of me.  I figured in my time to find legit contractors and worrying about what type of work they would do was not worth the money I "might" save by doing it myself.  So I went the turn key route.

    I was impressed by USREEB as they have a professional office and employ several employees that know what they are doing.  I had Mackaylee Beach show me several options.  Then I met with @Sean Tarpenning.  I threw dozens of questions at both of them that they answered easily.  They are straight shooters and good people.  I felt like they cared about making the deal work for both of us.

    With USREEB they sell and manage your property.  I like that aspect because they have more ownership to make it work for the both of us.  They want return buyers and they make money off being your property manager.  It is a huge incentive to make sure you are taken care of.

    Now the bad.  The C properties are in questionable areas but also priced to reflect that.  The rehabs are not high end because these are not mansion properties (although they are rehabbing high end properties now).  

    I ended up buying one of the C properties because it was a condo with an HOA. I felt the HOA was another set of eyes to watch and upkeep the property. I bugged the PM group on when payments were going to hit my account for the first few months but then I learned to relax and let them do their job.

    My property, 8 months later, is as advertised.  The tenants have not missed one payment (even though they can't guarantee that).  I am so happy about the property that I am going to back to KC in a couple weeks to buy another.  I will also visit other turn keys and look at other options of course but I am hoping USREEB gives me the best deal.

    4Reply
  • Joe Koppel
    OP
    San Diego, CA · Member since 2017 · 70 posts · 23 votes
    9y

    Thank you Kevin this is some very helpful information. Although I am going to set aside 100k to invest in properties it won't be in one shot. I will use this to buy multiple properties and spread the risk out.

    0Reply
  • Matt R.
    Blue Springs, MO · Member since 2015 · 481 posts · 313 votes
    9y

    I live in the KC area and I own one SFR in Independence. I've looked at their listings and driven by a couple of USREEB properties - in fact, there's one for rent now that's just down the street from my rental, and it looks pretty OK to me. But I've never done business with them.

    I think some of their properties are probably a reasonable deal, and some of them (mostly in the not-so-good neighborhoods) might be priced a little high for the neighborhood.

    I would echo the advice of the others to *come to KC yourself* and check out the neighborhoods and properties before you invest.  A quick Google shows round-trips flight from San Diego over a weekend(ish) in mid-April around $300.  Spending 0.3%-0.5% of your investing budget on a trip is money well spent, in my opinion.

    Matt R.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free