All Forum Posts by: Mark Shaffar
Mark Shaffar has started 27 posts and replied 316 times.
Post: Exit strategies for turnkey properties
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
I just mean that in some cases you might be able to sell to a larger pool of buyers if you aren't limited to only selling to cash buyers as some turnkey companies choose to be. In that case it is possible to get a better price and make your exit.
Post: Exit strategies for turnkey properties
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
A lot of turnkey providers are only selling to cash buyers so if you can accept a financing buyer you might have an edge. Also, are you comparing apples to apples? I know in Milwaukee it is easy for turnkey prices to look high when comparing with unrehabbed foreclosures.
Post: Suggestions for Investing Out-of-State
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Matt R.:
@Crystal Chang I hear ya on SoCal. It takes more vision here. It takes more work here. It takes more guts here. It takes more money here. You can find cash flow numbers an hour or two outside of town so keep that in mind if you want to stay more local. The number 18 guy on the Forbes 100 list invest in SoCal. He has 55,000 doors. I don't think he considers it a gamble let's say. The advantages of investing local are numerous. The disadvantages of investing remote are numerous.
Cash flow is easy to find all over the US map. There are good reasons for that. For example in Birmingham AL, the average house is 75k and can easily cash flow. Sounds great right. Well homes prices are down 5% 2014 there. Folks usually invest for 4 reasons. CF is one.
Dawn and Reese point out what you really need when you do this. Trust. I will add experience, so trusted experience! You sound like a good candidate for turn key investing.
Chris Clothier has a pretty good thing going for those who are looking for TK trusted experience. Check out this video to get some more info on that.
Good luck with your search!
I just need to say thanks for posting this video. I loved it.
Post: Avg Purchase Price Vs. Avg Rents in Your Town
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
In Milwaukee you can buy rehabbed duplexes for 65k that rent for $1200 in B neighborhoods. I just bought a SFH last week though because they are a little easier to refi cash out.
Post: Newbie from Tampa, FL
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Welcome to BP! What kind of investing are you looking to do?
Post: Suggestions for Investing Out-of-State
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Gregg Reinbold:
From my experience I would avoid single bedroom/ multi family for out of state investment. The turnover rate seems to is too high one the one bedroom units and if you don't have a great manager the vacancy rates will eat up your ROI
I agree with you if you are investing in C and below neighborhoods. If you are in B and up and you have very high leasing standards you can lower the risk (not eliminate it) of vacancy and turnover.
Post: Suggestions for Investing Out-of-State
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Originally posted by @Jason Hartman:
I had Consuelo Mack on my podcast and she quoted Meredith Whitney (who's been on my show too) saying; "the midwest is her favorite emerging market." I agree and the same applies to several areas in the south too. Buying real estate in California or any other high-priced market is more like gambling than investing. Anything without cash flow is a speculation, not an investment. I hope that helps, @Crystal Chang.
I like how Consuelo put that! I came from investing in China and I made a ton of cash selling my home, but I think I was lucky. I ignore appreciation when I evaluate a home. It's icing on the cake if it happens
Post: Greetings from Milwaukee
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
Hi Adam, I just bought a turnkey rental in Milwaukee last week. Welcome to BP.
Post: fix and hold opportunity in Quad Cities
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
1553 41st St, Rock Island, IL
Sales Price: $68,500 (investor's all in- includes a full rehab)
Rent: $850
Vacancy Factor: $42.50
Taxes: $156.37
Insurance: $56.17
Maintenance: $42.50
Management: $68
We have found excellent financing availability in the Quad Cities
Mortgage: $54,800 @ 5% for 20yrs
Mortgage payment: $361.66
Cashflow: $122.80
COCR: 10.76%
ARV $76,879
Subject House:
1553 41st St RI
2/1 980sqft
1.5 story frame built 1918
1 car garage
http://postlets.com/s/1553-41st-st-rock-island-il-61201/13943377
Post: Out of Area Real Estate Investing Meetup in Madison, WI
- Real Estate Agent
- Madison, WI
- Posts 328
- Votes 88
I'm back to Madison after a decade of working and traveling in Asia. While away I invested in Real Estate in China and in Minnesota. I've recently been looking at Madison's price-to-income ratios and noticed that Madison is not necessarily the best place for great cash flow. I also recently listened to a podcast on flipnerd.com by Jason Hartman and he talked about the value of being "Location agnostic" to find the best deals. Let's get together and learn about locations around the country for better cash flow than Madison. You can listen to the podcast here: http://flipnerd.com/buy-hold-investing/. Susan Hagemann from Calhoun Ventures will share about turnkey investing in Milwaukee.