All Forum Posts by: Brian Bradley

@Matt R. in this case my friend lives their so he knows the area and neighborhoods. Me flying out would not even be close to his knowledge of living their. Arm chair investing is something different. BP has a great book on the topic of investing out of state and most investors invest all over the nation and don't fly all over the nation to see every property. They have systems set up to cross check and verify all information they are getting. From the agent, the PM, the contractor, the inspector, etc. All work together and cross check each other for value etc. If the system is in place, no need to visit. If no system, then I would say visit. 

Thanks for the replies. And by no means do I say don't use a turnkey provide. it may be the correct situation for you. But please please vet the provider and due your job. Thanks @Brian Foster any business is trust and patience. I am a trial lawyer by trade. So all my time with clients is spent building trust and having patience. Same goes for real estate. Like you said, investors are making big decision with who to or not to work with and what and where to place their money. The best part of the vetting process is it weeds out shady providers and brings out characteristics of peoples to see if you even want to work with them. If its a fight from the beginning, then hold on for what is in store later on if and when things go bad and or you start having issues. @Holly Williams exactly. Every business person should encourage their possible clients to ask any and all questions, and to be comfortable with them doing their due diligence. @Tom Ott he out-sourced the PM to a company that he had an arrangement with, but then refused to give the name of the PM for me to talk to and interview until after I was already under contract. When I told him I would like to interview the PM to see if I wanted to use them or another and to verify from them specifically the numbers they told him he refused. And those are good articles, and BP has many good articles on the topic of how to use TK providers and how to vet them. 

I came across an interesting situation. It regards companies that offer turnkey solutions for investors. That is, investment properties that are already rehabbed, tenant-occupied, have property management in place, and producing cash flow. Sounds great right. But do they exist?

The reason of this is that I started to go down this path as a means to move on to other more affordable markets then where I live, but had zero connections in the area, and a partner with no investing experience, but who lived in the area I was going to invest in. Hence, the turnkey appeal.

I stumbled upon an turnkey company, conversation as going well, all until I started exercising regular prudent business judgment and started to vet the turnkey owner and what he was saying and asking if I can verify his numbers and talk to his property manager, as well as asked for prior customer reviews of clients who liked him, and preferable one who he had a problem with and how it was resolved.

Once I started doing my due diligence on him and his products and services his tone changed and turned to sleazy push back telling me how he does not need me or my money, does not need me in his portfolio, how he can pick up the phone and in one phone call sell any of his properties to his clients, and that he demanded my trust and no longer has to work for trust, that it should be given to him now automatically. No joke. This really was told to me. Probably big ego little ___.

Anyways, there are great articles written on BP about turnkey properties and how to do your due diligence and vet and verify all operation and all the numbers you are given. Do not take anything said to you at face value. If you get push back your spider sense should be going crazy and just walk away.

When working with turnkey operations. Still use your contingencies (Finance, Inspection). The property must appraise for the market value stated. Get Title insurance. Get your own review of the closing documents, DO NOT use their people. Get an agent or Attorney to review your closing documents.

Do your due diligence. Contact a real estate agent to run comps on the property and rental rates. Talk to property managers and get their rates and services, and compare their rental rates for that property with that of what you are being told and to your agent. NEVER take the turnkey providers work on rental income. Run your own numbers. Verify expenses, DO NOT rely on estimates. Look up taxes, get an actual insurance quote from insurance company, confirm with property managers their fees and services, and not just one. Conform if any HOA fees exist. Do not just blindly agree to use the property manager that comes wit the turnkey provider. Interview their property manager like anyone else. If they refuse to let you interview them like it happened to me, then walk away. Verify tenant status before purchasing and the lease terms. Ask for proof of renovations. Ask for outside references of investors who have worked with the turnkey provider and ask for records of seller success.

If your turnkey provider has any problem with this vetting and or pushes back on this because you are doing your due diligence and exercising good business decisions, then DO NOT go into business with them.

Good turnkey providers do exist. Just vet them. 

I came across an interesting situation. It regards companies that offer turnkey solutions for investors. That is, investment properties that are already rehabbed, tenant-occupied, have property management in place, and producing cash flow. Sounds great right. But do they exist? 

The reason of this is that I started to go down this path as a means to move on to other more affordable markets then where I live, but had zero connections in the area, and a partner with no investing experience, but who lived in the area I was going to invest in. Hence, the turnkey appeal.

I stumbled upon an turnkey company, conversation as going well, all until I started exercising regular prudent business judgment and started to vet the turnkey owner and what he was saying and asking if I can verify his numbers and talk to his property manager, as well as asked for prior customer reviews of clients who liked him, and preferable one who he had a problem with and how it was resolved.

Once I started doing my due diligence on him and his products and services his tone changed and turned to sleazy push back telling me how he does not need me or my money, does not need me in his portfolio, how he can pick up the phone and in one phone call sell any of his properties to his clients, and that he demanded my trust and no longer has to work for trust, that it should be given to him now automatically. No joke. This really was told to me. Probably big ego little ___.

Anyways, there are great articles written on BP about turnkey properties and how to do your due diligence and vet and verify all operation and all the numbers you are given. Do not take anything said to you at face value. If you get push back your spider sense should be going crazy and just walk away.

When working with turnkey operations. Still use your contingencies (Finance, Inspection). The property must appraise for the market value stated. Get Title insurance. Get your own review of the closing documents, DO NOT use their people. Get an agent or Attorney to review your closing documents.

Do your due diligence. Contact a real estate agent to run comps on the property and rental rates. Talk to property managers and get their rates and services, and compare their rental rates for that property with that of what you are being told and to your agent. NEVER take the turnkey providers work on rental income. Run your own numbers. Verify expenses, DO NOT rely on estimates. Look up taxes, get an actual insurance quote from insurance company, confirm with property managers their fees and services, and not just one. Conform if any HOA fees exist. Do not just blindly agree to use the property manager that comes wit the turnkey provider. Interview their property manager like anyone else. If they refuse to let you interview them like it happened to me, then walk away. Verify tenant status before purchasing and the lease terms. Ask for proof of renovations. Ask for outside references of investors who have worked with the turnkey provider and ask for records of seller success.

If your turnkey provider has any problem with this vetting and or pushes back on this because you are doing your due diligence and exercising good business decisions, then DO NOT go into business with them.

Good turnkey providers do exist. Just vet them. 

@Brooks F.  It's an overview of real estate investing. Their will be ups and downs. Their will be cycles like in any market. You will win and you will loose. The name of the game is to one act, and two act informed and with as much information as you can to limit risk. Nothing you do in life is guaranteed. Trust your numbers and the work and education you put into your investment and jump. Just don't jump if you are not doing your homework and numbers. If you're market is not stable or you can't find a deal that works for you, or you feel your market is overpriced, then go find another market. Deals are all over, not just in your town, city or state. Just identify your business plan and the type of investment property you want to invest in, the class of property and class of renter, if you want turnkey or to do some work, and stop over thinking, crunch your numbers and get going. Know what works in your market and what does not and don't be afraid to find other areas. If you don't want to be a land lord, consider investing in underperforming notes (first and secondary). Lots of great info starting to get written about it on BP. 

Are you Interested in acquiring property with a future development angle? 2 cottages exist on the land already. Potential to add up to 29 more units. Located in South East Salem, Oregon. The City has approved zoning change to allow MF according to development packet. There is also plans drawn up for 1/1. Can also pursue 2/1 - 2/2 with maybe a mix of 3/2. Property Listing is below. Contact for more information and to see the Development Packet that was filed with the City. 

http://wvmls.paragonrels.com/publink/default.aspx?... 

Looking for an investment focused agent with knowledge of the Nashville and surrounding suburb area. Prefer an agent who also has real estate investment properties. Thanks. Willing to also consider multi family units (Duplex, Triplex). Sister is moving to the area. Helping her find an agent. She would be living in the property and house hacking the other two units or rooms. 

Looking for an investment focused agent with knowledge of the Dayton and surrounding suburb area (Lebanon, Centerville, Fairfield, Springboro). Prefer an agent who also has real estate investment properties.  Thanks. 

@Jay Hinrichs gives good advice on this. I was hit up with a somewhat similar situation just a few days ago. I am now trying to iron out the details. One of my investing agents sent me over a possible development deal in Salem that has a few lodges already built, on a large plot of land, and cable of building 29 additional units. A Development packet was already filed.  However, we need an experienced developer, local land planner engineer, the land would need to be prept, plated,  lots of research into marketing, financing, design, what is the best use of the property (commercial, single family, multi family, etc) what is the average age of renters in the community, what is the expected growth rate of renters to owners. Etc and etc. Lots of time and energy besides just saying @leonid 

@Leonid Stakhov that you have land that needs to be developed. 

Consider bringing in a vale add syndicator to do this initial research work so you have a better idea of what the market is, what the best use of the land is, etc. then you have a proposal you can pitch to investors and developers. Best of luck. 

@joseph Garcia if you need an investment agent in Salem let me know. I can send you to a good one. Think through your focus so you know what you want and your metrics so when you talk to an agent it actually moves forward rather then I like it all and want to purchase something. Think of it in line of a defined business strategy. For example, my side real estate business we invest in multi-family units, for long term hold and rent. Then sell at 5-6 years when our equity hits its max. I also have a self directed 401k set up with my company that I then i tend to invest in underperforming secondary notes through my self directed retirement plan. I have established metrics that must be hit before I decide to purchase, and I even look in other states since cash flowing in Oregon is very hard due to having to pay asking price or over. We look for cash flow, equity and ROI. All must be meet before purchasing. Some agents get it, some fight it. I weed out the ones that can't get that it takes more work to get better deals, but then those deal are great deals. Just more work.

So, identify your business plan so you can attack it better and with a proper laser focus.