All Forum Posts by: Axel Meierhoefer

@Ali Boone That's very insightful. I have never seen my membership that way. I love to learn and constantly do but I also want to give back.

This discussion is super regarding as it shines light on a lot of issues gives perspectives and allows me to share my experiences.

I started a bunch of years ago and conditions have changed. I recall that Brandon always said, "if I get at least $150/month I consider it". I do the same but with the low-interest rates, it is possible to get more without any compromise on the quality of asset or management fees. how cool is that?

same with appreciation. In most of the areas I invested in I never expected a lot of appreciation and saw it as icing on the cake. Last year I made more than 9% in one market. That does not mean I would sell but I started reading about HELOC's again because I used to do that, then stopped and it could be interesting again if appreciation keeps going as it has lately.

I hope you join me in spreading some positive news on BP :-)

@Ola Dantis Fancy to see you here too. OOS Tk SFR is my passion project.

You are right about a lot of the TK providers. The trick is to find the diamonds among the coal.

@Sam Cook Wow, that's cool Are you driving one of those huge 18 wheelers?

No, I don't use Roofstock. I have my TK providers and by that, I am automatically in their pipeline. They know what I am looking for and send me upcoming deals for review. It is really convenient and now that I have a few properties with each of them its has gotten even easier.

I am happy to talk to you if that is something you can do while driving or when you stop somewhere. Just PM me and I can give you access to my calendar for you to pick a time that fits for you.

Be well and stay safe out there, especially in winter driving

@Ned J. You are right. That was also one of the reasons for me to start this thread. I actually did a lot of research and the vast majority of providers I foud did not meet the criteria I had developed and I eliminated them

Maybe reading something positive serves a purpose too and with the amazing interaction here I get to share some of the things that work for me.

Hopefully, members on BP are looking at options like TK like reviewing two sides of a coin. There are things to be aware of that are negative and should be avoided but there are also companies that do things right, who offer good service to their investors, and who develop great relationships in the community, leading to good tenants, and good value in the assets.

I am originally from Germany and Quality is something that is in our DNA. It's a little like Tiffany's or Cartier. Yes, you can get what looks like diamonds at Walmart but there is a reason they are much cheaper.

@Jeffery Callis Do you mind me asking why? What is holding you back? Maybe I can help to answer some questions> I have spoken to a lot of people who feel they don't have enough money to get started. I started with $16k and the second property was $19K for down payments (20% down, 80% financed).

@Dennis Wayne Thanks and I also like that I get a "Cherry" - I call the appreciation I have been seeing the last few years the "Cherry on top of the icing of the cake". In one of my regions I got 9.4% in 2020.

At some point, I probably use the equity for HELOC to leverage into more properties

All purchases were slightly below appraisal valuation. To me, that's fair because the TK provider took all the risk during the renovation and I know a tin of folks here in my area who try to make money flipping and most of their deals end up costing them more than they anticipated. 

Not sure about 99% and don't want to be a 1%-er but its better than most :-)

@Radhika Paliwal The markets I invest in are all in the Midwest and South.

Yes, I can refer you but I like to get to know the people I refer. That's what I promised my TK providers.

I think that's fair to avoid tire kickers occupying their time. Happy to have a call and get to know each other. Just PM me, please.

@Adam Hamm Actually I had to learn that Turnkey means a lot of things to different people.

For me a true turnkey provider, and the only type I work with finds the ugly duckling, renovated it, passes inspections and appraisal in such a way that the sales price is at or below appraisal, gives a rent guarantee and a work warranty for 1 year at closing and then manages the property for me, using best practices for tenant selection, investor communications, etc.

Thats' just me but it has worked great so far.

@Joe Splitrock Yes, totally agree Joe. I believe one factor that can tilt teh results in favor of the investor who is looking for this passive approach is the due diligence when it comes to the TK provider.

It is my impression that there are many to chose from but very few really meet my criteria.

In addition I have come to see that building a portfolio with a few adds a dynamic that I did not even had on my radar when I first started. It's the "how badly do we like to keep an investor dynamic". I have a TK that I will soon own 6 or 7 properties and they want to keep me. I have another that is not as good as the others and let them know that I am considering 1031 exchanging to a provider that treats me better and they suddenly found ways to be more attentive.

That dynamic is something to consider if you ask me.

I, if I were to start over, would aim for 3 really good providers in 3 markets and then build my portfolios with each, weighing in such a way that the best provider has the most of my properties.

@Dennis Wayne Welcome back. Without going into too much detail the numbers are as follows:

- own 9 properties

- currently $3000 cash flow/month

- from property income build $30K reserves (per BP recommendations) for vacancy, maintenance, and Capex.

- no longer adding to reserves unless there is a major draw for anything (hasn't happened yet) 

- total of $3600 in property reserves directly at TK providers for minor repairs so they can work without having to call me (this is in addition to my own reserve)

- Most recent property evaluation (I know Zillow is not everybody's favorite) approx. $1.2Million

- 2021 plan to add 2-5 new properties with 2 of my TK providers