Any Good Company recommendations?

Question

Most of what I read in this thread are negative comments. I'm searching through posts to find a company I might actually want to work with and can trust. I'd like to do turnkey deals or something else that doesn't require a lot of my time (I already have a full time job that I like).

Any positive suggestions???

Jeff S. · Answer

There is no such thing as a turnkey investment.  If you are involved in managing the property in any way, even if it means managing a manager, it can take a substantial amount of your time.  Anytime you are on title, even with partners, you run the risk of ending up managing a deal.
I agree that passive investments might be more suitable for you.  Here are a few random thoughts:
   1) You can invest in REITs through the stock market.  I understand how you feel about it but this might be an acceptable middle ground.
   2) You might partner with someone at an investment club by taking an equity interest in a deal secured by a lien or as a partner in an LLC.  Surly there must be some reputable syndicators at the investment clubs in Northern California?
  3) If you have some cash, and donâ€™t need the leverage, there are a million way to invest in real estate and not own any.  A few come to mind such as: Tax /deeds or liens, lend hard or transactional money, lend for first or second trust deeds.  Rehabbers and wholesalers always want to borrow cash.
  4) Land is relatively passive.  You could buy lots and lease option them for free to a builder and split the profit, or just collect a healthy option fee.  Or, just bank land in the path of progress and sit on it for awhile.
 5) If you are an accredited investor you might Google  RCP investments.  I know a few people that invest with them who are relatively happy.  Though weâ€™ve spoken, Iâ€™ve never done business with them.  The key here, as always, is diversification.
 6) TICâ€™s were popular for a while and I have a colleague who bought into one off a radio ad.  I thought he was nuts, but I guess heâ€™s doing OK.   You can Google TICâ€™s as well to see if there are any still around.

I strongly suggest that anytime you partner with someone, you ask for lots and lots and lots of references. Call every one and also do a skip trace on at least the organizer.  Did I mention asking for references?

Other than the due diligence, and you better have time for that, none of these ideas should take a lot of time after you plop your money down.  Good luck.

Jeff

Joshua Dorkin · Answer

I think you're finding lots of negative comments in this forum because there are so many hucksters in real estate.

That said, there are certainly plenty of great companies in the space.

It sounds like you want to be completely hand's off in what you're doing . . . I advise caution in doing so.  While there are many reputable companies, real estate is a business that requires you to be active, particularly if you're looking to be a landlord, which is what it sounds like.  If you're not managing the tenants and property yourself, you still need to manage the management.

I say, if you want to be hand's off, buy stocks.

Just something to think about . . .

Account Closed · Answer

good point jon, however it seems it may be best for him to be a passive investor..that being said i won't solicit him and beat a dead horse to give me money..however it could be something for him to think about in the future..even if it doesn't go to my investments...partnerring with somebody could provide great returns as we know with little work on his part...thanks

Account Closed · Answer

Hey Nick..About how much money are you looking to invest initially?  --Bryan

Jeffrey K. · Answer

I have not used them, but I asked about a company Harper Real Estate out of Florida.  I get their "hot sheet" every week in my email box.  I called once and they told me to get a prequal from their lender.  I left a message for the lender and he never got back to me.  I got tied up here in Milwaukee and forgot about it til I read your post.  You might get some more info from them and get on their mailing list.

I think the key is to have someone on the ground that you trust to look over the property before you buy it (if you dont go yourself).  I just see how much waste GC's have on local jobs when I am around, I can only imagine how bad it would be if it went from you through a PM company to a GC to a Sub.  What a mess!  I am not big on investing out of your area, but maybe you can find an investor on BP who would be willing to look at the property once you get it under contract.

Good luck and let us know how it goes.

Nick Scalero · Answer

Interesting...  123 views but not a single positive response.  That's disappointing.  Makes me think either there are only hucksters out and no reputable companies or no one wants to share their good finds.

Jon Holdman · Answer

Please note that Nick's asking for recommendations for companies here, not for ads or deals.  Just recommendations, please.

Nick Scalero · Answer

Thanks for the comments Josh.

I don't have faith in the stock market anymore.  It seems to over-react to any news.  It feels like a roller coaster ride.

I do expect to have to manage the managment.  That said, I'm still looking for recommendations.

Any Good Company recommendations?

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