All Forum Posts by: Melodee Lucido

@Joshua Dorkin @Brandon Turner 

 Thank you for this awesome book (I'm going through it again to highlight things now)--in all formats---and the bonuses are so amazing. I see people are asking for a month's free Pro for buying the book. The bonuses alone are worth MORE than many months of Pro payments.

To get to see and hear top investors tell their stories and their perspective of our industry is priceless. I really didn't expect it to be so good. I recommend every new investor and experienced investor to watch these interviews. They tell it like it truly is. These helped me with my head so much; I thought I was the only one experiencing the things they talk about--- because I know I still have so much to learn. What price can I put on the new confidence, grounded-ness and determination I am feeling from hearing my fellow investors share their path and their success.

I love seller financing and now I know other ways to use this tool. Seller finance is one of the most important tools any investor can have in their toolbox. Newbies should spend time learning this technique early on. This book will open minds to whole new realms of possibilities to many.

Great work Brandon. Thank you sooo much!

Hi Tara, & Martin,

Welcome to the exciting world of crei . . . decisions, decisions, decisions.

It's not all about what we would "rather" do. It's more about what makes the most sense. For example I was living in Southern California in a place called Santa Barbara where median priced homes were $650k and the investors do not play nicely with each other. It was no fun!

So, being a marketer for decades, I decided to use my skills to find a market that would be fun to work in; that's how I found Memphis. At the time turnkeys were not as popular as they are now but I felt that there was a real need for expanding that niche. So I found people that I wanted to work with and started a relationship with them and the learning began.

The recent discussion here http://www.biggerpockets.com/forums/12/topics/1529... is helpful I think. 

It really is about setting your goals/intention---and by that I mean write it down. What kind of roi are you wanting? What kind of neighborhood do you feel good about investing in and WHY? For example, some investors do not mind a C- or worse neighborhood as long as they have a high roi (20%+) and good PM in place (get the PM first). 

Others are happy with a lower roi (8-12%) in a B+ area where they can let their tenants pay off the property over time and have a smaller amount of cash flow. There are pluses and minuses in either scenario but as the saying goes, "Different strokes for different folks". 

I think most of us would love to be the rehab deal finder and execute the deal all the way through to the bigger bucks but it isn't easy in every market, it takes a lot of skills that most new investors do not yet have, and long distance investing requires a super team that knows how to benefit the needs of their clients. Thus, the popularity of turnkey companies.

There are properties available that are solid investments that are below today's market value. I like to work with people that are will to pass a little equity along to their buyer. However I know people that are perfectly happy paying retail or above!

Find an area---by researching and talking to people here on BP---that fits what your plan and then start looking at properties in that area. With turnkey it is more about the people you choose to work with than the house. Take your time and enjoy the journey ;-)

Best of success

@Chris L that is called hitting the nail on the head!! Putting the cart before the horse is dreadful in this biz.

Having excellent PM is more important than having an excellent property :-) You stated that so well. Thank you

 Hey @Troy S I don't think you misspoke and I think you are making a good point that we should all make sure we are in complete integrity with all our dealings.

I think I get the heart of what you are saying (and I'm trying to keep with the intent of this thread) new investors are vulnerable and we MUST take care to not lead them in a manipulative way. 

Everyone is selling every day. We sell our spouses, friends, kids, neighbors and co workers. I believe turnkey providers, as all other business people, deserve to get paid for what they do (the good ones work hard for their money). Marketing makes the world go around (ok, along with love) lol

I also believe the best way to sell is by building strong relationships. 

 ROTFL!! Yup, here we are again. Thanks for the laffs @David R

I love that this is bringing in important details. @Troy Sheets it's not unusual for turnkey owners to work with ther provider to bring clients. After all, if something is working well for someone they want to refer others---and it's nice to get paid for sending new biz.

Full disclosure is an important detail for all of us. I tell people up front if I am marketing a jv partner's property. It's not unusual in this biz and it isn't anything we need to hide.

Best of Success

@Chris K. you make a good point about to have the tenants in place or not. I have purchased, in the beginning before I had my current team, props with tenants. It seemed like a good idea, right?? But this was a good learning experience for me. Sometimes it is easier to have no tenants and to purchase "rent ready".

It all depends on how well you trust the person, company and Pm  to have a tenant in place. I will say, for sure, for those that are new to an area make sure you have read everything here on BP about skillfully finding, screening tenants and the best lease to use. An investor might have the best house in the best area----but a tenant can kill ya!!

I hate being a landlord so I was determined to find the best and let them handle the headaches ;-)

Best of Success!!

Wow @Eric Fernwood what a great post and nice presentation!

I respectfully disagree with you @Curt Davis  Good marketing though ;-)

I often help international and interstate turnkey and rehab investors that were ripped off in the past by a (then) high profile company. Just because someone has an office and lives in a nice area of Memphis doesn't mean they are more skillful, reliable or honest. These new out of area investors were referred by someone else, did all the demographic due diligence and did extensive research on the company and still got ripped off---yeah, from home bred Memphians.

Successful people throughout time have surrounded themselves by experts in their respective niches. I don't have to be an expert at everything in my business but I better have the best on my team of advisers, PM, contractors, attorneys and title companies---or just close up shop. It's easier to treat people right and deliver excellent service than to rip them off. One of my secrets to success is building partnerships for many years to come rather than trying to get a bunch of money from unsuspecting investors today.

And as for not getting a good deal because someone refers a client, sheesh. I have lovely cash flowing properties in great neighborhoods 20% under appraised value. I think that's pretty sweet.

But then that is just two cents from someone who has worked happily, successfully in Memphis from across the country for a year and a half ;-)

Wow, lots of good---- and questionable --- talk going on here.

Cassandra, welcome to BP , the best crei site online in the world. You're going to love it here.

It's pretty simple really. Turnkey properties are houses that someone has done all the work on: the company found the deal (which takes a lot of skill that is learned over time which has huge value to you), they did the renovation to the maximum level required for the neighborhood and area (again a learned skill), then they screen well and choose the best tenant AT market rent, and provide property management.

Of course turnkey providers are in business to make money as any are. Their fee is in the price of the home. Here is where many are different than others. There is the mentality---completely legitimate---that the buyer's money will be made over time as a buy/hold strategy. The tenants basically pay for your house, it's ongoing repairs (figured into the calculations at the very start) and you will have some cash flow. Thus many investors are willing to pay market value to have all the work done for them and then have a property that pretty much pays for itself.

There are people and companies that offer great turnkey properties with 20% equity and 8-12% TRUE NET ROI---that means every expense imaginable has been deducted before computing the roi. (yes, I see it all the time too; websites with properties that say 30% 45% ROI, right; I guess it could be possible in the hood). The properties I am speaking of have been beautifully renovated and are in good neighborhoods.

So, the moral of the story is don't judge all turnkey companies to be the same. I believe turnkeys are the best way to go as a beginner because it allows people to get into r.e. investing in an easier way.

Also, by taking your time and doing your homework you will learn what the numbers and demographics are. Talk with MANY people (network) study much, verify everything. I get people calling or emailing me all the time telling me how great a deal is, how safe the neighborhood is, or fair the price or whatever. It takes me about 5 minutes (usually less) to find out if they are full of baloney. It takes time to learn things but you can do it. 

The search bar here on BP is one of my best friends. I research anything and everything and there isn't a day that goes by that I don't learn something new. 

Best of success to you 

Glenn,

One more thought. Have you considered working with a wholesaler in other areas like Nashville or Chattanooga? These are growing areas not far from Memphis with strong economies. We are finding some nice deals there.

Just thought I'd mention it :-)