All Forum Posts by: J. Martin

 That's very good advice David.  I didn't know how most investors get started in the beginning.

Thanks for coming out everyone! We had 67 investors RSVP, the biggest meetup yet!

@J. Martin - I have a video clip of you singing, should I share it with everyone? haha

Only took me two years to take some pictures of my meetup in action :)

High turn over.  Intermittent income, higher maintenance. Steep professional expense eviction, legal expense.

I will stick to neighborhoods with high income. Lower ROI and higher appreciation rate.

Zip 95129, 95117, 95130, 95128 condos, th are where I will start and move up.... Multi units appreciate lower.

@Account Closed that networking and developing strong relationships is a key first step and that those efforts with networking will likely be rewarded with these kinds of amazing opportunities.

J. Martin, my background is in economics so I do have some thoughts on your comments about economic cycles and this REI model.

I tend to think the economics in the South Bay are strong for this strategy but my thoughts on that may differ from yours..

Due to high home costs our local market, investors struggle to maintain cash flow under standard lending conditions/structures.  With that said, allowing owners a % of anything you can make over market rent as furnished corporate rental is a unique play that can be used to attract great home owners with GREAT properties (Win/Win).  This strategy is a bit different than yours (I believe) but it relates to maintaining your supply of strong/highly marketable properties. 

The demand for a corporate rental is a different conversation which is subject to local business, but two things here:

1)  If the property is located in an area where only a handful of businesses would likely require its use, you are a lot more sensitive to local market pressures/economics compared to a place that is close, proximity wise, to not only multiples businesses which could demand your property but also multiple industries (Ie: tech, hospitals, finance, etc).  I think focusing on that initially is a good way to cover yourself in economic downturn, by being very picky. 

2)  Personally I would also think of other locations where the economics of the area are such that this model could work out great, and determine if you have any contact(s) there with a strong RE network?  Consider partnering with those people by providing the capital for lease/furniture, and have them take care of the property (owner) search + tenant search, then come to an agreement on cash split and responsibilities, go from there..

Long answer short, I don't feel that local economics should slow the implementation and growth of this/your model, but doing it with the right properties locally and also diversifying with operations in different markets will help cover your exposure if things start slowing in a specific industry within a specific market.

Hope that helps.

Kent.

Myo,

It was nice seeing you at the summit a couple of weeks ago. This summit was definitely even better than the one I attended in 2014. Hope you learned a few things from the veterans and vendors.

It's pretty crazy how we could structure these MFH deals. If you told me I could do this a few years ago, I would have said you're crazy. @J. Martin was the one that hooked us up with a $1.725M loan on a $2.3M deal through one of his contacts when our loan broker dropped the bomb on us 20 days into contract.

We wasted no time, reached out to his contact right away, went to lunch with him and his associate the next day. The following day, we received their LOI. We asked if they can close the loan in 35 days. They put a rush on the appraisal. When it came down to the wire, they said they could close it in 28 days. 28 days for a commercial loan? Who said it's not possible? Three months later, we refinanced the deal, appraisal came back just over $3M. We did a cash-out refi, pulled out over $2.1M cash and paid-off the initial loan. Whew, that was a close one.

Once you got this game figured out. It's just rinse and repeat. Funny how this game will give you new ideas that you didn't think was even possible just a few short months ago. I've shared this idea with @David C.. He thinks it's very possible. @Johnson H. will help us accomplish it. Also, these two gentlemen will help me with the "No Hold Bar REI" thing.

People ask how much money has BP made for you? For me, not much. However, what BP has made for me was some invaluable friendship. Some of them have become business partners. Some will become business partners. Some have invested with us. I wouldn't be surprised some of them will forever be my friends and business partners. How much does that worth? Can anyone put a value on it?

Just wanted to throw a quick note out to the readers here on BP and those searching or asking questions about Turnkey companies.

I have met with dozens across the country over the last few years and many that are no longer in business.  There are some that I am a big fan of the owners and the business because they do things the right way and I believe that if they follow their paths and stay true to their actions, they will continue to grow and prosper.

I had the pleasure of spending some time with @Engelo Rumora in Oakland a couple of weeks ago at @J. Martin 's real estate summit, which was a fantastic event btw.  

I came away impressed with Engelo's passion and commitment to doing things the right way.  I found him sincere in his desire to truly deliver what his clients' expect.  Without a doubt, he is willing to work and work and work and absent any real secrets to success in this business, that is a huge differentiator.

We had a lot of time to talk about best practices, what we've learned after 13 years building Memphis Invest, how we manage almost 4,000 properties and the challenges he is going to face as his company grows.  I was very impressed that his true to desire was to build a great company. 

When I finally landed back in Memphis a few days later he had sent a thank you gift for taking the time to hang out and share.  A class move for sure.

So this is unsolicited and, although I have not been to Toledo yet to check out the operation in person, I will be heading there soon to check out the great things he is doing and put my eyes on his business.  From a purely personal standpoint, Engelo is a stand-up guy who I believe is going to keep building a high-quality Turnkey company.

For the readers, take that .02 for what it is worth when you are investigating Turn-key companies to work with.