All Forum Posts by: Elaine Hester

Thanks everyone for the prompt feedback, totally appreciated!! --Keep it coming.ツ

@Jay Hinrichs, you are absolutely correct, it is NOT a buy and hold cash flow rental deal, rather it's an entitlement sell to a builder deal. The partners I mentioned are just investors coming in with their capital to get the deal rolling ... maybe partners is not the right word as I seemed to throw some people off. 

The PMs are doing all the work to obtain city approvals and complete all necessary studies and are projecting an 18 month turnaround to sell, at which time the investors will (hopefully) cash out. The PMs have at least over 100 similar acquisitions under their belt, so I'd say they have the necessary knowledge and experience to pull this off again and again. This particular deal will be subdivided into 40 entry-level home sites, which--compared to other much larger acquisitions in their history--is a smaller, less risky one for them. 

I am strongly considering a new type of investment for me, which is land that is to be sold to a homebuilder. I would be partnering with others in this investment within an LLC. Each of us would have a percentage share in the net proceeds. The project managers who are putting the deals together have a long, solid history in residential land entitlement and mapping and they have shared the project particulars, costs, and projected profits. On one particular deal, we are looking at an annualized return of 35% based on a projected 18-month duration, which is more like the kind of return I've been holding out for.

I'm looking for anyone that wants to play devil's advocate and tell me what I should be looking out for or what I might be missing before going all in.

Thanks in advance!

@Zach Evanish I am looking to possibly buy/sell on roofstock. Can you tell me how it compares with knock, opendoor and offerpad? 

Also, is it possible to 1031 exchange using these sites?

FOCM loans is advertising all over the web and offering some pretty fair terms for hard money loans. Just wondering if anyone's heard of them or, better yet, used them...

Just wondering if anyone out there in the BP world has heard of or used the company Equity & Help before (formerly MyFamily.House). Here is a company presentation by the founder. They appear to have a really promising business plan that's a win-win for all. I'd love to know if anyone has, or knows anyone who has actually invested with them. Please share your experiences!!

Thax @Manolo D.! I do know that. Should be approved any day now. Fingers x'd. ;)

We are cash buyers seeking a rockstar agent/investor—who also works with investors. 

We are looking at BRRR properties in B-C neighborhoods and in need of an agent with boots on the ground in Indianapolis who knows the neighborhoods really well and can also refer solid contractors and property managers.

Please connect with me/message me and let's talk Indy RE!

I agree that there might be some sacrifice of time, and that's where we're willing to be flexible. What I'm finding about the backlog problem is that most contractors are up to their ears in remodels and dying to get their hands on a ground-up new construction project. These are the guys I'm hearing from.

As of now, our plans are still with the county and we are still talking to potential contractors. So anyone who is interested, please PM me. The grading and architectural plans are complete and solid. 

@Manolo D.

Everyone has a budget, all we're asking for is a contractor that can respect that. And quality should be a given, or why bother building to begin with? 

I have had several contractors reach out and do believe there are good ones out there!

Thank you all for your replies, this has been very helpful! 

@Lee Ripma

Although I'm just becoming familiar with the term, I do understand it is used somewhat loosely in the industry and it is my understanding that you can buy properties that a turnkey operation will handle the renovations and set up management for. I guess it depends on the company and the services they offer.

@Blair Poelman I actually don't intend to fly out for anything other than viewing the property initially. The turnkey company handles the renovation and management. I just don't feel confident enough yet to buy a property sight unseen, which is why I will fly out to see it before I pull the trigger. 

You mentioned that "the real problem with turnkey properties are the expectations that are set by the seller to the buyer." Can you elaborate on what you meant by that? I.e., what expectations?

@Larry Fried So happy to hear of your positive experience. Would you be so kind as to share what company you dealt with that you speak so highly of?

@Lane Kawaoka Happy to hear you had luck with starting out in turnkey. I'm guessing when I "outgrow" an investment, I can always let it go. I would love to see your underwriting Calc. Please PM me and connect!

@Caleb Heimsoth Good point about appraisal—thanks for the reminder to verify that! Would you mind sharing what turnkey companies you've successfully worked with? Feel free to connect and PM me. 

@Ali Boone I am actually Investor Type #3 from your article! I have done a couple of BRRRRs and want to invest more OOS where I can get cashflow without having to self-manage. My in-state properties are doing well with appreciation, but I'd like more cashflow. Thus my interest in turnkey investing. Can you also share the companies you've worked with successfully?

@Justin B. Yay—love hearing success stories! Your statements are exactly why I'm interested. Did you stick with the same company throughout all 5 deals? Would love to hear who you used.

@Tom Ott Thanks for your post and the articles! I will read them momentarily. Is Ohio your only market?

@Mike D'Arrigo Thanks for the call—looking forward to connecting with your team next weekend!

@Cezar D. Thank you for sharing. Happy to hear of your success and would love to hear who you went with in Indy. Eventually I will get to the point where I'm good with doing deals sight unseen. For now I'm still being a bit cautious—and it gives me an excuse to get away with the hubs for the weekend. ;)