All Forum Posts by: Lance Robinson

@Kyle Krason Diversification is definitely not for average folks.  Stocks are more liquid, having a no-load mutual fund (think S&P 500) of an additional emergency fund that you just hold there for no reason could be beneficial (if 5+ years based on statistics.) It allows you a better long term holding vehicle.  No billionaires own 0 stocks. : )

I should also add to my post, I do own an E-Commerce business as well that is on the side of my day job, so maybe that would be considered stock as I bought the company. If you look at it that way, then you could say I have 20% of my portfolio in stocks.

I'll chime in with the opposite of most on this thread. I'm actually 100% RE and 0% in stocks.  After my first deal, I was hooked, but kept investing in stock, after my second deal, I was a little more hooked, and slowed down. Once I hit deals 3-6, I was putting a small percent of money into stocks and eventually cashed that out shortly thereafter and have been buying ONLY Real Estate ever sense.  I don't contribute to a 401K or any type of stock retirement vehicle (I don't get an employer match though either - that would make me reconsider.) My return is so great on my properties that I couldn't go to back to stocks.

Also to add - I look at IRR, even though my portfolio returns double digit CoC returns. My IRR is out of the realm of the market being able to hit it, my CoC could probably be achieved in the market by picking good growth stock mutual funds.

 I didn't mean to attack you, I shouldn't have gotten in to that. He also said Wholesale by the way...

 Good call. Sorry about BP, people get really riled up and race to try and sound like the smartest in the room with all the answers. The more complicated, the smarter you sound. Most of them have analysis paralysis and have purchased a couple properties that have more debt than equity on them AKA not even prone to a lawsuit and think their millionaires as a result. Message me if you need more help. Good luck!

 Or until you want to sell a property but your trust owns it and it's a paperwork nightmare every time he buys or sells anything. Better question - what are your merits to recommend someone spend so much money on time after a first deal? If deal 2 goes bad and he's out of the RE game it would be a huge waste. But please share your assets and liabilities and what made you get this structure. 

Point 2 - LLC literally means limited liability. If in doubt than Tristan should just up his umbrella policy for litigation. You ONLY really need asset protection. Right now he may only have $100K in assets. A $1M umbrella costs a couple hundred a year at most, can be turned off any time, and 10X protection of his assets.

If he had $5M+ in assets then I would agree with you MAYBE. But he asked for entity protection, not estate planning - this is kind of the problem with bigger Pockets. 

I started reading feedback and had to reply right away. All you need is an LLC you can set up yourself to protect you from liability. You will start paying a lot of taxes when you start having corporations as a holding getting taxed then you getting taxed on money you take out.

LLC is only for liability, not tax purposes. If you have legal concerns, then get an LLC, if not, then you probably don't even need that. You could also just get business insurance I'm sure to protect you legally.

@Tom Ott Agreed, that's why when you find someone you like working with, stick with them until you have a reason otherwise! It's hard to find the good ones. : )

 Hey TJ - Sorry for the delay. I've worked with 5 different turnkey providers now (I have or have had some other properties as well) and have to say that who you work with and the feet on the street are really the most important. This property being turnkey was an illusion. It had a bunch of issues from day one. It wasn't tenanted, then it had everything from a bad HVAC, to a hole in the roof, to just repairs and odds and ends left and right. I trusted the home inspector that they set me up with, and they did a crummy job obviously. (Not worth the lawsuit to spend good money after bad). Then the property took a couple months to rent out, ended up having to be section 8, for $100 less per month than expected. All the way around, the illusion of a fully rehabbed property with a good tenant in it in exchange for market value was just that, an illusion. More due diligence should have been done on my end, and I can guarantee something like this will never happen to me again. I also know who I do and do not trust now going forward. I hope that helps, let me know if you have any other Qs.

Hey All - I wander around and rarely post on here, but thought I would share my real Real Estate returns for my turnkey portfolio. I get asked a bunch of questions about Turnkey and would be more than willing to answer any Qs about specific TK companies via message, but trying to avoid recommending anyone via the forums.

I owned 4 TK properties for the entire year of 2016. They were all 70-75% LTV and had the following returns:

I owned 2 TK properties that I had for 11 months out of the year, and the returns looked like this:

Yes, that is a negative. I've learned a lot over the past couple of years in terms of providers, what to look for/not to look for, how to do proper due diligence, etc. Most importantly, I've learned that turnkey is an illusion. The idea of paying market for a house that is tenanted and assuming it's as easy as getting a check every month isn't the case. The idea that it is ready to go and no work is needed is also not always the case. If anybody is searching tk, please ask away!

I like traditional buy and hold. Slow and steady wins the race in my opinion. You are too close to retirement to take that much risk to "get rich quick." RE is GRQ enough.

Also - second some of the comments above, nothing passive about passive RE investing, but worth the returns IMO.