All Forum Posts by: Kyle Scholnick

@Jay Hinrichs

 Jay, as you know I always love your opinion however it almost seems like you are against turnkey properties.... Now that may just be a complete misinterpretation and I might be extremely naïve here,  and perhaps what you are doing is just saying all the negatives involved in turnkey properties that nobody else mentions,  which I can't tell you how much I appreciate and is such valuable information....

But in your opinion do you think for most busy people in general,  are turnkey properties actually the way to go, are they the solution?  Or in your experience do people get ripped off more often than not buying these turnkey companies and they are better off steering clear of them?

@Leslie Pappas

 Would you mind expanding on your experience with the syndication?  The process of getting involved, How long you have been with them, where you find them, and what your general returns have been ?

@Trevor Ewen

 I agree with you Trevor, busy professionals are severely in the minority around here,  and there are not enough posts on passive real estate like you and @Jay Hinrichs  mentioned.

It is hard to explain to people that there are more ways in life to be involved in real estate, make a great return, and be in another industry and be happy....all without buying a foreclosure and flipping! Who would have thought!  They don't seem to understand that there is a need for busy professionals like us who have skill in other industries other than real estate but still would like some passive exposure to it. 

 Would you mind expanding on your experience with the syndication?  You don't have to give a name but perhaps the process you went through,   How long you have been with them, how to get involved with syndications, where you find them, and what your general returns have been ?

@Jay Hinrichs

 I love you more and more man!  You always have great opinions, you are honest and you always have great ideas.  Really sad knowing how rare that is. 

 You make an excellent point, that there are many other areas to invest passively in real estate and those are great suggestions. 

The reason I was so set on turnkey rentals was because of not only the potential return but also the loan pay down, the tax benefits, the depreciation so I was hoping with all that factored in could make a good 12-15%.   Perhaps that is unrealistic .... From all the turnkeys that you have owned...  When you factor in tax benefits, depreciation, etc. what was your total return on most of your turnkey rentals?

@Spencer Sutton

 You make a great point Spencer,  but I absolutely love when turnkey companies post numbers like that....they are doing quite a bit of financial sleight-of-hand by not including any vacancies, capital expenses, a tiny bit to maintenance....

It just makes it really easy to find out who are the honest turnkeys and who are the ones that are just insulting your intelligence by thinking you're going to fall for their ridiculous and unrealistic numbers 

 When I see a company post a pro forma like that I immediately disregard them and take them off my list of turnkeys to invest in because I know they are unrealistic and dishonest from the start 

@Account Closed

 We have been waiting for people like you, can you please elaborate on your situation and your experience with the turnkey companies?

 Can you give some examples on how long you have owned the properties, what kind of problems you have run into, what has your actual return on investment been, what has vacancies been, what has maintenance been ?

Thanks !

@Brad B.

 I couldn't disagree with you more.  You said "even busy professionals gravitate towards real estate because they realize with a little education and networking they can create much better returns than they can from turnkey"

 No offense but that makes no sense, and that is exactly what I posted about on my first post on this thread.

 Just to use myself as an example,  I am a very busy physician,  I have surgeries, I have emergency room calls, I have patients in the hospital, I see 35 patients a day in my office, I work about 12 hours a day... Not to mention the fact that if I am lucky I would like to actually get to the gym, spend time with my family, and possibly get more than five hours of sleep one night.... I am nothing special there are many people like me I am just using myself as an example..

 Us busy professionals do very well in our industry, this is what we do, this is how we make money .... It may be hard for people on this site to understand but there are many other ways of making money and being very happy  what you are doing without flipping houses.

So those of us busy professionals who barely have time to breathe have absolutely no desire nor time to start sending out direct mailings, driving for dollars, searching the MLS all day, dealing with contractors, dealing with tenants, etc. .... Not to mention the fact that in my area just outside Washington DC this is not a cash flow market so to have any profitable rentals, you need to be out of state, therefore need a great team to help run your rentals .... You can try to build that team yourself or you can buy the package of everything a.k.a. a turnkey company.

 Busy professionals like me understand that real estate is a great investment and you can make more money than the stock market down the road with more consistent returns.... That doesn't mean I am going to start doing all this crap myself even if I can get a few more percentages of return because my skill is better used treating patients and I make a lot more money doing that....so  I would rather do my full-time job and invest in turn key real estate with the hopes of making a higher return than the stock market even if I have to give up a few percentages to avoid the hours of hassle and time  that I don't have  to try to find deals and manage everything myself. 

 That is why turnkey is so important to so many people,  and it is so frustrating when people are not transparent or give honest feedback about them 

@Account Closed

Thank you so much for your input it sounds like you have a lot of experience owning turnkeys

I won't ask you to name the companies you are with, but can you shed light on all of us on what some of your returns have been, what your maintenance costs have been, what your vacancies have been, how long you have owned each property?

 It is so rare we get someone like you with actual experience in owning turn keys so this information would be so helpful to many people thanks so much Anish

@Account Closed

 I am not sure why people are taking it this way, I was not implying that you buy 30 turnkeys all at once.... It is a very common strategy to purchase one or two properties per year even for a beginner,  so I am saying someone may have gotten 30 turnkeys  over the course of about 10 years or so...

 And you don't have to take 30 as literally the number I am just implying on the general concept why arent there people that own 20 of them or 12 of them it just always seems people have one to three of them 

 If you buy one or two turnkeys per year you may need about $50,000 per year... That may be a lot to some people who know nothing about finance but for many of us who will save 50 or 60% of our income that is really not that hard 

@Jay Hinrichs 

 I always appreciate your honesty and your transparency.  I would really love it if @Ali Boone  would address some of those questions.  It is very frustrating when people think that it is still 1993 and they can just say that they own a bunch of something and pass themselves off as an expert without showing one lick of proof... People are smarter than that today and you need to show your cards.  The key to running a convincing Bluff is that once in a while you need  to actually have a winning hand.  It is actually quite insulting that you think people are that gullible and naive Ali,  you need to work on a better sales pitch.

So @Ali Boone  please give us details on your personal portfolio,  it is not fair that you try to push turnkey so much and talk about how it's the greatest thing in the world yet you have shown no proof on how many you actually own. 

My personal adviser always tries to get me to buy cash value life insurance which I am not a fan of and he says it's the greatest thing in the world but at least he actually shows me he owns plenty of it and believes in what he sells...that is very respectable, at least he actually shows me he owns plenty of it even if we disagree  on the product