All Forum Posts by: Andrew Bailey

@Account Closed

Thanks your example helped a lot. Do you know which area I should void and which area really good to invest near albany?

I am looking at colonie, rensselaear, guilderland, latham, north latham, cohoes, 

areas I am voiding area downtown albany, schenectady, and troy. just because of high tax and building looks like they about to fall down

Hi, I do not own any real estate yet but thinking to change that. After 2 years searching and working with realtor, I finally found 1 deal that I am thinking to buy 

• Its a 2 family house and both units are rented. 
• In Albany NY area, owner has to pay for Water bill and Trash Bill
• Net Income (Cash-flow) = $595
• Net ROI = 5.5% (its low but I think its good for first time bc right now I have zero real estate)
• Cash-on-Cash Return = 16% (I think its good bc 401k retire plans returns are around 8%)

Other things to consider. New Roof

• roof age = 20 years or 240 months (guessing
  
• Cost of new roof $7,000 (guessing)
• $7,000 / 240 = $30 per month (I added this in repairs)

New Furnace (i do not know if this is 2 or 1 furnace)

• Furnace Age = 20 years or 240 months
• Cost of new Furnace $2,500 (guessing)
• $2,500 / 240 = $10 per month (I added this in repairs)

2 new Water Heaters (1 for each unit)

• Water Heater Age = 12 Years or 144 months
• cost of new Water Heater $1,000 Each
• $1,000 / 144 = $7 per month for each water heaters
  

What you guys think? Should I put in offer? also, did I missed anything?

@Wayne Brooks @James Wise @Chris Clothier @Michael A.

oh wow, silly me, I was about to give them my $60k saving. Kris Team said everything that I wanted to hear and convinced me 100% that I could be making $10k per month in 15 year with this deal. 

I am so glad I came here on biggerpockets first. I  will not be investing with this turn-key company. Hopefully this help other people who are thinking to invest with Kris Company. 

I will try to buy a 2 family house my self locally now

Again Thanks for your guys advise, it helped a lot

@Wayne Brooks @David Janosik

Thank you for ur advise. I agree, giving up 50% of the equity on house is bad deal so I talked to them on phone. They said that first 2 houses will be owned by me 100%. anything after will be 50/50.

for basically for $60k they will buy 2 houses and put it under my name 100%.

I am thinking to just get 2 houses with them. after 3 years, I can sell those houses and buy more houses locally. It's hard to find deals for me update NY bc of high taxes and its my first time. I guess it mainly comes downs to if I want to pay $10k up front fee

They said cash-flow is pretty good rough idea and some times its even more. I just ran some numbers using zillow cal... lets say 

Houses purchase value = $140k

Down payment = $28,000

• Mortgage = $788 (P&I = $601, Taxes = $136, Insurance = $50)
• Repairs $100, Vacancy = $100, PM = $200
• Total expenses = $1,188

Rent $1,600

Cash-flow = $412 

I am new to real estate and I can really use your advise on this. I know alot of people are partnering with him so that makes me think its not fraud. Kris does have good track record

This sound like a Pyramid Scheme to me. I could be wrong

hi, Recently, I found about a turn-key company owned by Kris Krohn and I talked to them on phone. Anyways, I want to know if this a good deal or not. Worse case, I lose thousands of dollars 

Their main selling part was that they can take my $60k investment and turn it into 20 houses in next 15 years which will generate $400 cash-flow per house. These houses are single family houses and location is Tennessee, Floridia and Texas. Also they don't keep houses for long terms, which means they sell and re-buy houses every 5 years to lower the high cost of maintenance, such as the roof.

Draw back of this turn-key company is that all of the houses will be 50/50 partnership. So on each house, they will receive $400 cash-flow and I will receive $400 cash-flow. House ownership also will be 50/50.

Total investment they are asking is for $60k

• $10k will go into up front fee
• $25k will go into down payment for house# 1
• $25k will go into down payment for house # 2

both houses will have the following:

• Houses purchase price is around $140k
• 25% equity position
• 23% ROI (might be gross roi)
• 7% to 10% cash-on-cash ROI
• $400 per month cash-flow (after all expenses such as mortgage, insurance, property management etc...)
• closing cost will be in mortgage

Their 15 year plan will follow: (rough idea)
Year#1

• Pay $10k up front fee
• buy 2 houses with $50k down payment
• cash flow $800
  

Year#3

• buy 2 more houses with refinancing
• cash flow $1,600

Year#5

• Sell 4 houses and buy 5 more houses
• Cash flow $2,000

Year#7

• 7 houses
• cash flow $2,800

Year#9

• 11 houses
• Cash flow $4,400
  

Year#10

• sell 11 old houses and buy 12 new houses
• cash-flow $4,800

Year#12

• 15 houses
• cash flow $6,000

Year#14

• 18 houses
• cash flow $7,200
  

Year#15

• sell all houses and buy 20 houses
• cash flow $8,000