Rejected by a turnkey operation - Ohio Cash Flow
Rental Property Investor · Columbus, OH · Member since 2018 · 33 posts · 19 votes
Rejected by a turnkey operation - Ohio Cash Flow
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesOriginally posted by @Kelly McClellan:
Originally posted by @Mark S.:
@Kelly McClellan, I had a call with them years ago. They seemed okay but also seemed very much focused on cash buyers only (first red flag). They had a 4-plex come online and I asked if they would accept financing on it and they said they would. After further research, I decided to pass on it. I would occasionally get emails from them and it was difficult to get a response back when I’d reply, so I just decided to move on. Over the years as they’ve apparently grown bigger, they seem to project a “better than thou” image with a chip on their shoulder and that doesn’t sit well with me. Not too long ago, in an effort to clean up their email list, asked if I wanted to be removed and then tried to refer me to another turnkey group in Ohio (that I had already connected with and visited) to pick up a quick referral fee. I called them out on it and never heard from them again (and hope I never do). What a waste of my time.
Thanks for the info. I guess I am not the only one.
I don't have a current business relationship with the company.. However I know the owner quite well and was one of his first funding sources for inventory.. Engelo is a True American success story. He comes here from Australia with two nickles in his pocket .. Born in Croatia ..
He is a high energy and he has a certain client he likes to deal with. It is NOT a red flag that a vendor will only work with cash buyers that is just things that are promulgated by other turn key outfits. I mean try to buy a place in Vegas right now without cash.
Bottom line though once your his client I know no one else who does any better at after care. The same intensity he has on the up front picking what buyers he will work with is the same intensity after the fact and making sure his clients are well taken care of.. You see no mention from anyone about being a bad PM etc or the house broke down 6 months after buying it.
I have been at many speaking engagements where Engelo and I were presenting. And he is quite rough around the edges with some F bombs thrown in but then again the host was doing the same thing.. I am old school I would never personally do that.. But it works for the new crop of younger investors.. Also keep in mind Engelo is NOT a the super high volume TK operator.. so he is far more hands on.. And once your in his camp that same fierce protective attitude envelopes his investors..
I personally have the utmost respect and admiration for Engelo someone that can come to America with nothing and go on to so well for his clients and him and his family this is what made America great.
34 Replies
- Rental Property Investor · Columbus, OH · Member since 2018 · 33 posts · 19 votes5y
Originally posted by @Engelo Rumora:
Originally posted by @Chris Clothier:
Originally posted by @Kelly McClellan:
Originally posted by @Chris Clothier:
Hey Kelly, I hate that you are sharing a disappointing experience and I am not a client nor do I have any experience with them as a client, but out of curiosity, I wanted to confirm something you typed above. Did you mean to say that everything is online and you have to send actual statements for them to keep? In other words, the only way to move forward is to share sensitive data before you can even speak to someone? What all was required to be shared? I find that part highly unusual and I wanted to make sure the way I read that was accurate.
That is correct. I completed a document (may have been via email. It had been a while) that was asked of me. In addition they made it very clear they were looking fit cash buyers. I indicated that would not be a problem. I sent redacted bank statements as well as redacted brokerage statements. This was all before actually would schedule a time to speak to me. I did not have a problem with using cash. I had provided them with the fact that I already owned over 20 units (it was asked in a form) and enough financial information for them to know I am an accredited investor.
After I had provided the info, they kept coming back and asking for additional information (at this point requesting I lay out to them what it was I specifically wanted). What I wanted was a representative from the company to speak with me to discuss the process, typical returns, management agreements, etc.
It had been mentioned that the owner is a little rough around the edges. That doesn’t bother me at all. I like hi energy. I use f bombs myself. What irritated me was that nobody would spend the time to speak to me after I had clearly done my part to prove I was legitimate.
Ok, well, that was all I was asking about info. It sounds like they use a qualification process and their process includes some financial data in a form you fill out. Redacted account data probably helps them confirm and even helps buyers self-eliminate. I imagine they have more buyers than deals.
And, I will add this. Jay mentioned earlier that my company has a reputation for service. And yet, we miss things and not every person that speaks with us wants to move forward. I have to agree that sometimes a company pointing you in another direction is a good thing for you. We do it all the time when we know we are simply not a good fit for the client. I get it that you would have liked a phone call to determine that, but they reached their conclusion before that. I was just curious as to what they were asking for and why and now that you've answered it I can understand what their process is. I do think they have a good reputation that they have built up over time so perhaps this was just not the communication you wanted but not indicative of them(?). Either way, good luck with your investing.
Hey mate,
Long time, no speak.
Yep, we request a basic POF to show the investor can buy with cash.
We mention this throughout our site, video's and the investor application form.
A basic screenshot will suffice and we ask for all important numbers to be blacked out.
90% of all apps are folks wanting to finance so right of the bat we "loose" that business.
Thanks and take care :)
Hello to you also.
I was and am aware of your requirement for cash buyers.
All of the information I sent to you showed that I was indeed a cash buyer. That is why I was confused as to why I could not get anyone to speak to me on the phone about your business and how it worked and what it offered. Maybe your screening system just broke down in my case.
I sent plenty of information showing I have cash and not a single indication that I wanted to finance. Others that are posting here regarding this thread are misinformed to assume that your folks simply screened out a prospect that wasn’t able and ready to perform.
All I really wanted to know was how your system worked. From purchase to management and disposal. What was the process? What sort of average returns might one expect? Information about the renovation process? Etc... Details that I assume any informed investor doing due diligence would ask.
I watched your videos of interviews with investors. I liked what I saw as you seems like a “real” person. I drive a service van to my properties and have renovated most of the properties we own. I, too, am prone to through out an f-bomb at a moment’s notice.
Anyway, property prices continue to escalate here in central Ohio. I have not bought anything new for a while and in fact sold one about a year ago (that was the cash I was looking to invest). Now I am looking close at DST opportunities as I continue to seek a way to segue from active management to more passive ownership.
It is that aspect of Ohio Cash Flow that interested me. Read through the threads. I never complained that I needed to send POF info. I was disappointed that after I did I continued to get questions asking specifically what I was interested in. The answer was that I was interested in speaking to someone about investment opportunities. I simply didn't understand why you all continued to reach out to me after having already told me to pound sand!
Take care and good luck with everything. I like to see people succeed.
Regards
Kelly McClellan
- Member since 2019 · 7k+ posts · 4k+ votes5y
If you've been in BP long enough, you may notice that some company here is really trying very hard to keep maintain their image and reputation in BP while giving solid advice.
There're many cases where newbie investors (not you) is bashing a company in BP or creating a negative impression which actually (from a fair judgement) just a small mistake from both parties. Think like negative feedback on Yelp that may affect the company business. As result, some of those companies are sometimes becoming more over-protective and more selective in working with a new investor that they don't know before. It's just the nature of this real estate business. - Las Vegas, NV · Member since 2018 · 403 posts · 474 votes5y
Businesses get to choose with whom they do business. Block their email, mark it as spam so you don’t ser their messages anymore, and move on with your life.
If they don’t want to do business with you, then you probably also don’t want to do business with them. NEXT.
- Rental Property Investor · Columbus, OH · Member since 2018 · 33 posts · 19 votes5y
Originally posted by @Account Closed:
Originally posted by @Kelly McClellan:
Originally posted by @Account Closed:
Sounds like there was not a fit in terms of style .. like a Wall Street type trying to hang out with a SoCal surfer type.
Hey Mike.
Wouldn’t put myself in either category. I own, manage renovate and maintain my own property. I drive a service van and most days I am wearing my grubby work clothes. I have worked hard for years. Have been a scientist, salesman, professional firefighter and through it all, a real estate investor and landlord.
I get along with most personalities.
Nobody at that company spent enough “live” time with me to know anything much about me.
Your Comment: "Wouldn’t put myself in either category. Have been a scientist, salesman, professional firefighter"
It isn't me that you have to impress, it's them and apparently you came up short.My daughter is a scientist, my dad was a fireman - they are very different professions and very different people. If you can't decide between which of the two to do I can see why you might be difficult to work with. Just an observation, not a judgment. Okay, it is a judgment, I wouldn't want your money either. Not that you're not a nice person, but I don't know which mood you'll be in as we go through the tedious realty of tenants and toilets.
I just had a call from one of my *former* investors (I fired him) that owns a business in So Cal and had to tell him that we wouldn't be doing a second deal together. He hired me to advise him on a property he bought in Phoenix and then ignored my advice, did his own thing and the deal went south because he made emotional decisions. He wanted some money back. Fat chance, my advice was sound, when he took action based on his decisions he is responsible for the outcome.
The Turnkey company you mentioned has opted to not go through that process with you. It doesn't make you any less a truly wonderful individual, it just saves both of you the frustration of being on two different wave lengths. I get along with 99.9% of people, but your money doesn't mean that much to me, and I'm sure that is all they put into the equation as well. Go in peace and enjoy life instead of blasting people who don't fit your expectations. You'll be much happier.
Ok
- 5yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Kelly McClellan:
Originally posted by @Engelo Rumora:
Originally posted by @Chris Clothier:
Originally posted by @Kelly McClellan:
Originally posted by @Chris Clothier:
Hey Kelly, I hate that you are sharing a disappointing experience and I am not a client nor do I have any experience with them as a client, but out of curiosity, I wanted to confirm something you typed above. Did you mean to say that everything is online and you have to send actual statements for them to keep? In other words, the only way to move forward is to share sensitive data before you can even speak to someone? What all was required to be shared? I find that part highly unusual and I wanted to make sure the way I read that was accurate.
That is correct. I completed a document (may have been via email. It had been a while) that was asked of me. In addition they made it very clear they were looking fit cash buyers. I indicated that would not be a problem. I sent redacted bank statements as well as redacted brokerage statements. This was all before actually would schedule a time to speak to me. I did not have a problem with using cash. I had provided them with the fact that I already owned over 20 units (it was asked in a form) and enough financial information for them to know I am an accredited investor.
After I had provided the info, they kept coming back and asking for additional information (at this point requesting I lay out to them what it was I specifically wanted). What I wanted was a representative from the company to speak with me to discuss the process, typical returns, management agreements, etc.
It had been mentioned that the owner is a little rough around the edges. That doesn’t bother me at all. I like hi energy. I use f bombs myself. What irritated me was that nobody would spend the time to speak to me after I had clearly done my part to prove I was legitimate.
Ok, well, that was all I was asking about info. It sounds like they use a qualification process and their process includes some financial data in a form you fill out. Redacted account data probably helps them confirm and even helps buyers self-eliminate. I imagine they have more buyers than deals.
And, I will add this. Jay mentioned earlier that my company has a reputation for service. And yet, we miss things and not every person that speaks with us wants to move forward. I have to agree that sometimes a company pointing you in another direction is a good thing for you. We do it all the time when we know we are simply not a good fit for the client. I get it that you would have liked a phone call to determine that, but they reached their conclusion before that. I was just curious as to what they were asking for and why and now that you've answered it I can understand what their process is. I do think they have a good reputation that they have built up over time so perhaps this was just not the communication you wanted but not indicative of them(?). Either way, good luck with your investing.
Hey mate,
Long time, no speak.
Yep, we request a basic POF to show the investor can buy with cash.
We mention this throughout our site, video's and the investor application form.
A basic screenshot will suffice and we ask for all important numbers to be blacked out.
90% of all apps are folks wanting to finance so right of the bat we "loose" that business.
Thanks and take care :)
Hello to you also.
I was and am aware of your requirement for cash buyers.
All of the information I sent to you showed that I was indeed a cash buyer. That is why I was confused as to why I could not get anyone to speak to me on the phone about your business and how it worked and what it offered. Maybe your screening system just broke down in my case.
I sent plenty of information showing I have cash and not a single indication that I wanted to finance. Others that are posting here regarding this thread are misinformed to assume that your folks simply screened out a prospect that wasn’t able and ready to perform.
All I really wanted to know was how your system worked. From purchase to management and disposal. What was the process? What sort of average returns might one expect? Information about the renovation process? Etc... Details that I assume any informed investor doing due diligence would ask.
I watched your videos of interviews with investors. I liked what I saw as you seems like a “real” person. I drive a service van to my properties and have renovated most of the properties we own. I, too, am prone to through out an f-bomb at a moment’s notice.
Anyway, property prices continue to escalate here in central Ohio. I have not bought anything new for a while and in fact sold one about a year ago (that was the cash I was looking to invest). Now I am looking close at DST opportunities as I continue to seek a way to segue from active management to more passive ownership.
It is that aspect of Ohio Cash Flow that interested me. Read through the threads. I never complained that I needed to send POF info. I was disappointed that after I did I continued to get questions asking specifically what I was interested in. The answer was that I was interested in speaking to someone about investment opportunities. I simply didn't understand why you all continued to reach out to me after having already told me to pound sand!
Take care and good luck with everything. I like to see people succeed.
Regards
Kelly McClellan
Hi Kelly,
Thanks for your detailed explanation.
My apologies for your disappointment.
If I could turn back time, we probably would have done things differently.
But such is life.
You live and you learn.
Feel free to hit me up via message and I can point you in the right direction on our market or at least share some opinions on the turnkey business model.
Keep the dream alive and I wish you all the best.
- Member since 2019 · 45 posts · 63 votes3y
Dude they suck. There's a reason they do Cash Only offers - because they sell you properties that are *supposedly* fully renovated, and once you buy them you can't get out of it. I lost about $25,000 through them, will never work with them again
- 2yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Quote from @Zachary Schimenz:
Dude they suck. There's a reason they do Cash Only offers - because they sell you properties that are *supposedly* fully renovated, and once you buy them you can't get out of it. I lost about $25,000 through them, will never work with them again
Since I'm already in defense mode on another thread, might as well revive this one...
No matter how hard you try to pre-qualify and dodge the bullet like Keanu in Matrix.
Eventually you get struck.
For further entertainment, feel free to CLICK HERE
Join the conversationCreate a free account to reply, vote on answers and follow this thread.