All Forum Posts by: Dave Williamson

I'm hoping someone can clarify a scenario I am running into on a turnkey property in Birmingham, Alabama. I have bought two other properties from this seller and everything has been smooth sailing so far.

The third property I am currently "clear to close" on, but a Right of Redemption predicament just came up. The property was foreclosed on in August, 2015 so the one year redemption window does not come up for a few more months. The seller offered to pay for the cost of a redemption bond, but I am wondering how I would be impacted in the rare case that this property is redeemed?

I realize that the owner of the right of redemption would owe interest, taxes, insurance premiums, and necessary permanent improvements. However, would I end up losing a big chunk of money based on the profit margin of the turnkey seller? The property was foreclosed for $37K and I have a contract after full rehab for $70k. My estimate is that the turnkey provider has less than $60k invested including their rehab and holding costs. Do I stand to lose a portion of that difference?

- Dave

Originally posted by @Jackie Lange:

Yes, I live in Boquete Panama and I own a small organic coffee farm so I know that business too.  I just finished a coffee harvest.

The ROI quoted by some companies selling coffee farm parcels in Boquete is totally unrealistic.
Buyer beware!!!!!

Reality is often completely different than what it looks like on paper.

Jackie, Thank you for the reply! Have you had a chance to meet Darren and David and/or look into their operation? They seem to run a tight ship, but I don't know enough about specialty coffee or the industry as a whole.

@Yasir LillingstonI don't personally know how to operate a Coffee Farm, but David and Darren seem to run a tight operation. I was truly impressed during the visit. 

They were previously involved with a group in Columbia who I hear was successful with a similar model. They a great guys. I suggest reaching out and speaking with them about your interest and expressing and concerns you may have.

Hey guys, I'm looking to overhaul a property in the Atlanta/Brookhaven area. The property is in good condition but will need a full renovation. I'm looking to get quotes for the whole interior: - New kitchen including cabinets, counters, floors, and built in appliances - Taking down several walls some of which are load bearing. - Vaulting the ceiling. - New bathrooms and expanding the master bath - Possibly finishing the basement to include entertaining space and another bedroom I'm open to suggestions for contractors who will do any and all of the above. - Dave

Originally posted by @Karolyn Son:

Hello all,

First time posting here.  I just got burned by turn key company in Birmingham, AL and desire not to repeat the mistake. I thought I can ask great group like BP before I dive into new investing this time.

Since my price point is not what goes on in Los Angeles area, I was looking other states to add few more rentals which will produce about 1% point you often discuss on BP.

Your advise would be very much appreciated...Karol

 Hi Karol,

What do you mean when you say you "got burned?" I would be curious to heard what happened.

- Dave

@Charlie Fitzgerald Thank you!

Hey guys, 

I have recently started acquiring buy and hold rental properties, and I'm looking to free up cash to grow my portfolio.

- Notes: my residence has approx $200k equity and is currently a few years into a 30-year conventional mortgage at 3.25% interest. I feel that the cash out re-fi would typically be a great option, but I don't want a significant increase in my overall interest rate.

HELOC vs. Home Eq Loan vs Re-Fi. What do you recommend as the best means of pulling cash from my primary residence? Interest only or principal plus interest loan? pros and cons? Do any of the above count as an additional mortgage in my Fannie Mae 1-10 loans? Thanks!

Originally posted by @Mocellie Bitting:

Originally posted by @Dave Williamson:

I'm under contract on a turnkey rental property. The inspection report is at the link below. The seller has offered to fix most or all of the issues. This is in a B neighborhood.

What to you see as potential red flags? Should I get any specialized inspections?

http://alatechinspection.com/rports/424_13th_court...

- Dave

 I'm familiar with the turnkey provider thats looking to sell you that property. I've sold them several properties acting in the capacity of a wholesaler and that doesn't resemble the quality of work they do.

My belief is that their either managing that property for a investor and there helping them sell or they picked it up as a wholesale deal and there trying to turn it quick without doing a full rehab thats the reason there more than likely offering to remedy any and all problems..

As well you may want to confirm thats actually a B-class neighborhood because I don't think they operate in B-class area's.

If I can be of any assistance let me know!!!

 We may be talking about different providers. This one works in mostly B neighborhoods and has a great overall reputation. Before I had the inspector come out, He let me know that he had not inspected it yet and that he had not been in the crawl space. The HVAC is also slated to be replaced. 

I'll post a follow up once we determine the extent of repair for the other issues.

- Dave

I'm under contract on a turnkey rental property. The inspection report is at the link below. The seller has offered to fix most or all of the issues. This is in a B neighborhood.

What to you see as potential red flags? Should I get any specialized inspections?

http://alatechinspection.com/rports/424_13th_court_nw_birmingham_home_inspection_111315.pdf

- Dave

I'm in Savannah all the time. I'll have to see if I can cruise by it next time I'm around. Good luck with the rehab!

- Dave