Rent to Retirement - Zach

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Rent to Retirement - Zach

Charity Hanif
Gold Beach, OR · Member since 2018 · 10 posts · 16 votes

Hello Forum . . . I've done a bit of looking around here for reviews of Rent to Retirement - a turnkey company.  http://renttoretirement.com/.

Anyone have recent experience?  I'm considering my first investment with a turnkey company and considering a property they have on offer.  Any other experience with turnkey's that I should consider?

Thank you,

Charity

(a more passive investor than I would like to be; but otherwise busy in my day job for the time being.)

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Brooke Andrea
New York City, NY · Member since 2017 · 43 posts · 174 votes
8y

@Charity Hanif - These forums are easy to lose your initial question as you tend to get advice from all over the place, and often not even related to your initial question.  I would urge you to speak with individuals who are experienced in the specific area you requesting.  So I will try my best to address your initial question.

I have invested with Rent To Retirement (mainly working with Zach), and bought 3 properties so far.  I would say generally I've been very happy with my experience, and I do plan to purchase more.  The thing that stuck out the most about them over other turnkey operations is the personal time Zach was able to spend on the phone with me strategically planning how we can reach our financial goals via RE investing.  For instance, we bought the first two using conventional lending.  For the third we were able to be creative and set up a SDIRA to purchase the 3rd increasing our cash flow even more.  Zach spent hours on the phone with us to make sure we were on the right path.  He has his local partners that work in each market to make sure you are in the right hands.  I also know he is an experienced investor himself and has a personal portfolio in each market he works within, which adds credibility in my book.

If you want more specific investor reviews I would look at his profile references.  He has better reviews than most other turnkey companies I've seen.  If you would like to know more specific info from me, just send me a PM.  I've sent you a colleague request.

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  • Angela Doyle
    Member since 2018 · 24 posts · 16 votes
    7y

    @Zach Lemaster I just started researching your company and I am very interested. Currently I have a SFH and a fourplex that my husband and I are renovating but I am wanting to build our portfolio and be well on our way to retirement within the next 10 years.

    9Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    7y
    Originally posted by @Danny Randolph:

    Where are you getting 25% for management expenses?  That's completely unrealistic! 

    The exact quote: "What's realistic is 20-25% of the rents for property management (if you decide to go with one), repairs and vacancy" 

    Going with 5% vacancy, 5% repairs, 7% capex and 8% management gets you to 25% in a hurry. And that's being a tad aggressive.

    I'm researching RentToRetirement right now - specifically in Ohio and on the positive side, the homes look to be in good shape (going by the pictures) and truly being turnkey. Three downsides thus far (all numbers related):

    1. Their expenses are too low (as a few have mentioned above). That will severely impact the advertised ROI.

    2. All models use $2k closing costs on financed deals; that's not realistic. Count on at least $5k, otherwise you're fooling yourself.

    3. My software is having a difficult time matching current values, I'm coming in lower. That is a big concern.

     Numbers 1 and 2 are changes I can do and make determinations based on my figures. Number 3 is more problematic. 

    1Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    7y

    @Tchaka Owen @Danny Randolph Thanks for the input.  As we have not had the opportunity to speak yet, I do suggest you schedule a time to review specifics with me on our company operations.  Thank you for the kind & positive feedback on the OH properties!  We definitely strive to offer exceptional turnkey investment opportunities for our investors!  As far as the numbers are concerned, these are not arbitrary estimates as we have the ability to look at our current portfolio performance to pull data from concerning expenses.  I think neighborhood class has a big role in what to expect for expenses.  Danny, who you quoted has purchased multiple homes with us, so previous investors will be the best resource to see how their true experience has been so far.  To your lender closing cost question, I'm afraid you may have been overpaying for your loans likely.  We have lenders we can recommend that will bring those closing costs very close to the $2,000 price point ($500 origination fee, $500 appraisal, roughly $600-$700 title fees, $300 inspection if you choose to do one).  That is where the $2K is coming from, so we do have justification to back up some of these estimates.  The only other down at closing would be any pre-paid taxes/insurance that we account for in our monthly expense breakdown.  I'm more than happy to have a follow up conversation with you to go into greater detail of course.  Please just message or email with some times to set up a call.

    Also, here is a good link to a forum discussion with many investors that have worked with us: https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

    Looking forward to connecting.

    Zach

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    15Reply
  • Danny Randolph
    Member since 2018 · 17 posts · 75 votes
    7y

    Yes, I agree with Zach on my properties.  I used their recommended lender which was significantly cheaper than other lenders I've received quotes for.  As far as expenses go, for the first few years of the investment hopefully there are little to no vacancy, and minimal maintenance.  That has been the case for me.  I'm sure over time there will be some vacancy & maintenance just by the nature of owning rental real estate.  So things will probably average out, but generally my portfolio has been performing better than initial projections.  Thanks again for all the help & great service Zach!  Looking forward to continually expanding my portfolio to reach those passive income goals!

    10Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    7y

    @Zach Lemaster - not sure what they're doing with the numbers, however I'm sure it's not $2000 for closing costs. I used to be a lender and I've seen all sorts of things...do you remember "no cost" refinances? They had a cost and the customer paid it. If the lenders you mention aren't charging a processing or underwriting fee (or both), then it's being built into the loan via rate. Lenders need to make money too. $600-700 title fees is reasonable, then you add title search, owners title policy and government stamps, transfer, etc. It's not going to be $2000...and it will be even higher if the lender requires a survey. Note: we're talking true closing costs, prepaids and escrows are a separate thing.

    0Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    7y

    Instead of having this back and forth on this thread, I encourage you to inquiry on your own with lenders.  As you know, there are three things you need to consider when looking at loan quotes (rates, fees & points).   I think you'll be pleasantly surprised on what the rates/fees they are currently offering.  Of course rates vary daily, so anyone else looking at this thread in the future please be conscious of the date this was posted.

    Zach

    ------------------
    CHARLIE HILLEMANN     | Executive Vice President, Stifel Bank

    OR

    Greg Iverson Vice President - Mortgage Lending

    Bank of Springfield

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    12Reply
  • Ed Dugan
    Real Estate Agent · NM · Member since 2019 · 1 post · 1 vote
    6y

    Might be a dumb question but... are the prices negotiable?

    1Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    6y

    @Ed Dugan Not typically unless you are purchasing multiple properties at once, which most investors do actually. We do our best to price homes appropriately to meet investor cash flow & ROI requirements. Ideally the prices are slightly below market value to allow the investor to have some initial equity.

    Please feel free to reach out to me directly Ed with any other questions.  I typically like to start with an initial phone consultation to learn more about your investment goals, and to explain all that our company has to offer.

    Please let me know if this is something you would like to do.

    Thanks,

    Zach

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    9Reply
  • Patrick Felt
    Member since 2019 · 5 posts · 19 votes
    6y

    I'm currently being guided by Zach on my first couple of turnkeys. The process so far has been smooth and can't wait for everything to close in the next month. Zach has been very helpful to me despite being a very busy individual, so i appreciate him taking out the time to go over every aspect of the process. Not to mention the added gems he drops regarding other aspects of investing. At the moment he is mentoring me on the strategy of investing through my self-directed IRA, which i don't know a whole lot about, but will be considering for my next couple of purchases. From what i have gathered, Zach has a passion for helping people reach their dreams of financial freedom and as i get further along in my career, i can only say that Zach's help will undoubtably be priceless. So, all and all i recommend first time and seasoned investors to give Zach and his team a chance to not only increase your cashflow but to broaden your knowledge of the RE investment space!

    Thank you in advance @Zach Lemaster for everything!

    🙏

    Words of advice to others: Take Action NOW NOT LATER!

    9Reply
  • Kalen Jordan
    Austin · Member since 2015 · 149 posts · 80 votes
    6y
    Originally posted by @Lane Kawaoka:

    Sounds like another fly by night

    Out of curiosity why do you say that? I just heard their ad on the BP podcast. Curious what others experience with them is.

    0Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    6y

    @Kalen Jordan

    Thank you for the interest!  As with all social media today, people can pretty much say whatever they would like with little to no validity.  I encourage you to pay attention to investor experiences that have actually worked with us over the years to get a true gauge of expectations from authentic clients.  We have many satisfied investors that we have worked with for many years, and have very large portfolios.  I've included some links below for you to reference with discussions from previous clients.  Please let me know if you are interested in scheduling an initial consultation to learn more about the services we have to offer, and to discuss your investment goals in detail.

    https://www.biggerpockets.com/users/ZacharyCole/references

    https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

    https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

    Thanks!

    Zach

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    7Reply
  • Kalen Jordan
    Austin · Member since 2015 · 149 posts · 80 votes
    6y

    Thanks Zach! Understood. Btw I noticed you don't list vacancy rates for the KC property listed on your site? Also can't find vacancy rates on deptofnumbers for KC - what vacancy rate are you seeing?

    Update: sorry I see the numbers now in the word doc - because they are in an image they didn't come up when I did a text search :)

    3Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    6y

    @Kalen Jordan

    We do list vacancy rates in all of our pro formas.  I believe you need to click on the actual links to the full inventory page that has a very specific breakdown of each property.  Those are live google documents that are a real time inventory.  Sounds like you are just on the general page with example properties.  Next step would definitely be to schedule an initial consultation to learn more.  Please let me know if you would like to do this.

    Looking forward to connecting!


    Zach

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    8Reply
  • Larry RayPro Member
    New to Real Estate · Tampa, FL · Member since 2019 · 14 posts · 12 votes
    6y

    I recently started working with Rent To Retirement (Specifically Zach), thus far he has been professional and a wealth of knowledge. Im strongly considering making my first real estate purchase with him. I appreciate everyone that provided their experience with R2R and the advice, in general.

    7Reply
  • Kathleen D.
    Member since 2020 · 21 posts · 28 votes
    6y

    @Larry Ray 

    I've purchased three properties with R2R last year, and have been very impressed with the performance so far!  I'm currently under contract to purchase 2 more with plans to hopefully get to 10 doors by this time next year.  I originally learned about their platform from a work colleague who purchased many rentals over the past five years with them and has been very successful.  Zach has been tremendous to work with, and has definitely been a huge help in advising on topics like tax strategies, LLCs & the best markets for cash flow.  If you are considering working with them I would recommend it.  They have a great team all around!

    6Reply
  • Jeffrey Simone
    Sherman, TX · Member since 2018 · 7 posts · 3 votes
    6y
    Originally posted by @Josh Rogers:

    @Carey Flamer-Powell

    I've invested with them since 2018 and had a pretty good experience overall.  I plan to purchase at least 2 more homes with them this year if I can swing it.  Here is a better thread that I've seen for more reviews that involves other investors that have actually worked with them.  It doesn't get sidetracked like this thread:

    https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

    PM me with any specific questions you have, and I'm happy to answer them.

    Josh, 

    I'm interested in investing with R2R. Could you share some information about your purchases and how they are performing? As well as any issues you've run into and how to avoid them for a new investor. Feel free to PM me if you'd prefer that. 

    1Reply
  • Josh Rogers
    Cheyenne, WY · Member since 2016 · 23 posts · 94 votes
    6y

    @Jeffrey Simone

    I think they do an excellent job! I've been very impressed with their communication, quality, value & overall customer service. I've really been able to expand my knowledge as a RE investor due to their help & mentorship. I had no idea I could use some creative methods to grow my portfolio. So they offer good rental products, but I think the greater value comes from simply working with them and learning about the most strategic ways to invest! We've invested in a total of 7 properties with them so far, and plan to continue as we have more capital available. Our next purchase we are looking to make is on of their new build SFR or duplexes in FL. I really like the idea of new builds in an area with strong appreciation, and quality tenant demographics. As far as advice for what to avoid I would recommend staying away from real low income locations, but I think they generally do not operate in lower class areas. Other than that I would say a lot of the learning probably comes through just getting started at some level, and gaining some first hand experience. We have not had any big issues so far to share experiences about. Hope this helps. Let me know if I can answer any other questions.

    4Reply
  • Shanthi Palayankottai
    Member since 2020 · 9 posts · 6 votes
    5y

    Truly an interesting read on R2R and the appreciation for @Zach Lemaster With so many folks from here reaching out to Zach, curious to know who gets the deal. I am hoping to connect with you as well 😀

    6Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    5y

    @Shanthi Palayankottai

    Thank you for the mention!  We do have a lot of interest & demand from investors, and rightfully so when we try our best to set our investors up for success as you've read.  We have an entire team dedicated to working with our investors in all aspects of building a successful rental portfolio.  We also have a lot of inventory to choose from on a consistent basis, but properties do move quickly.  So you will have ample support, and many investment opportunities to choose from.  If you haven't set up an initial phone consultation with one of our investment counselors, that would be the best place to start.  

    We typically like to start with an initial phone call with investors to learn more about your investment goals, and to explain all that our company has to offer. This will also allow us to answer all your questions in great detail.  We look forward to connecting with you!

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    9Reply
  • Melissa Perez
    Rental Property Investor · Northern, NJ · Member since 2019 · 34 posts · 41 votes
    5y

    @Zach Lemaster Are you available for the initial phone consultation? How involved are you with investors? I have heard great things about people’s interactions with you so was just wondering if it was possible to work with you directly when we are ready to pull the trigger. Thanks!


    6Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    5y

    @Melissa Perez

    Hi Melissa!  Yes, of course I can be available for an initial phone call.  All my contact information is below in my signature, or on my profile page.  Email is the best way to schedule something as I may be booked out a couple days in advance.  We have an entire team of professionals to assist you in building your overall investment strategy, and to ensure you are covering all aspects of building a successful, sustainable rental portfolio.  So you will be interacting with many people to review the best legal, tax, accounting, financing, insurance practices, etc.  You truly do need a team of competent professionals to build a business investing in real estate.  This all happens over time of course, so I don't mean to overwhelm you.  My point is only that you have an excellent support team to assist you from a comprehensive standpoint investing in real estate across different cash flow markets.  We will walk you through all these steps, but the first step is to connect with one of our investment counselors, or myself for an initial consultation to review your goals.  We will also take this time to explain our procedures, and answer any questions you have.  Feel free to reach out to schedule something.  We look forward to connecting with you very soon!

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    9Reply
  • Melissa Perez
    Rental Property Investor · Northern, NJ · Member since 2019 · 34 posts · 41 votes
    5y

    @Zach Lemaster great! We will be sure to schedule some time with you soon. Thanks for responding so quickly :)

    6Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    5y

    @Melissa Perez

    Fantastic.  I'm looking forward to it!

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    8Reply
  • Melissa Perez
    Rental Property Investor · Northern, NJ · Member since 2019 · 34 posts · 41 votes
    5y

    @Katie Caldwell So sorry to hear this is happening!  What are your next steps? I’m curious to see how this plays out for you and if you had to pay for the appraisal. 

    0Reply
  • Katie Caldwell
    Evansville, IN · Member since 2016 · 9 posts · 5 votes
    5y

    @Melissa Perez Hey! I did have the chance to speak with Zach and everything has been resolved. :)

    4Reply
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