padeals.com anyone have any info?

Question

These are the we buy houses guys in central pa.  I read their website and attended an online presentation.  Then I was getting heavy emails.  Lots of motivational talk.  Is that just how a buyers list gets built or does that flag them as scammers?

Are they any more trustworthy because they do property management as well?  If they overprice and your returns are negative or the place is vacacpnt, you'll be in their face all the time.

I've wanted to get into real estate and this looks like a hands-off way to get some exposure and experience while I stay focused on my main job.  Is it too good to be true?   How can I find out if their property management is good?

Thanks for any info.  I've found a ripoff report and some other complaint online but it looked like those were resolved.

Zack Wiest · Answer

David,

This is Zack Wiest, CEO of PA Deals. Your concerns are extremely valid and you have reason to be skeptical. That said, I can assure you we provide our clients with legitimate opportunities to invest in quality real estate. I can also assure you that your risk is managed when working with us and we absolutely do all of the heavy lifting for you. Do you pay for these services? Sure, but even after our fee structure. we provide massive value.

Our properties are priced 5% - 10% below market, professionally renovated with a major emphasis on mechanical items, located in economically sound neighborhoods and cash flow very well even after realistic expense calculations. And our property management is built on how we manage our own 7 million dollar portfolio. The same systems we use to be successful, we use to make you successful.

We are the investment property provider and property manager of choice for many doctors, cpa’s, ceo’s, coo’s, cfo’s, engineer’s, architects and many other hard working professional people. We have completed in excess of 1,000 real estate deals in Central PA valued at more than $100,000,000.

David C. · Answer

Thanks.  I expect smaller margins, higher margins must be earned, and I'm not willing to do the work.  For now, the depreciation is my biggest goal with tax rates going up soon.   Plus with a 20+ year time horizon I hope the current real estate market is long forgotten when its time to sell.

I think I'd even be OK with low positive cash flow.  I just don't want to be a fool and overpay too much - or get left with negative cash flow because the rent and/or value were over estimated.  I'm a noob with this and I'm afraid I'm jumping in the pool with a shark.  How do I find out if he's bouncing his tenants around like that?  He claims they manage over 300 units.

Raymond B. · Answer

David Cawley,
First of all, welcome to the best Real Estate Forum, on the net.

If you search around on this site, most of the complaints about Property Management Companies, are they want your $$$, and don't care about your property. PM Companies, on average charge 10% of the monthly rental.

When you purchase a "Turn Key Rental," you are paying a premium for it.

A friend of mine, got involved with one of those types of Companies.
They guaranteed a tenant for one year. 
After the year ended, the Turn Key Co., removed that tenant, and put them in another "Turn Key Rental."

Concerning possible profit on a Rental Property, I suggest that you read this as a Guide
http://www.biggerpockets.com/forums/52/topics/18371-help-me-understand-this-deal-and-5-2-rule

Good Luck!
Raymond