All Forum Posts by: Peter Ledger

@John Morgan you're the man! Thanks for the reference!

@Coty Dolan We have a buyer right now trying to close on a cookie cutter deal and his HM lender is requiring a little more skin in the game for him. I'm looking for a HM lender that will take second position for $15k OR will still lend at 100%. Is there anyone out there still willing to do either of those?

@Bruce Harding Say what you want about our sports teams, but our RE market for investors is phenomenal. Fantastic cost of entry, high rents, great stock.

Hey @Erron Fayson, welcome to the site! I agree with @Ryan Evans, Cleveland neighborhood quality varies block by block. There are parts of town where houses on one street are $300k+ and literally just one street over they're less than 100K.

I've seen that Ultimate Guide to Grading Cleveland Neighborhoods article mentioned above. That should be taken as an introduction, not as gospel.

Hey @Andy Ramdeen, 

1:

I always tell people that REI requires 4 resources:

1. Time
2. Money
3. Experience
4. Work

The folks that are happy with turnkey are the ones that usually have money, but don't want to give time, work, and experience to REI. To them their turnkey rentals are the same as a stock or bond.

The best returns will always be if you can handle a flip yourself, but flipping requires the most from all four of the above resources.

2:

I agree with @Clayton Mobley, the major reason why investors choose turn key is because there aren't cash-flowing properties available in their area. If you're looking to invest passively, then it doesn't matter where the property is, the only thing that matters then is the return.

3:

I again agree with @Clayton Mobley's #3 point. If you're looking to invest out of state the best first investment you can make is a plane ticket. I would add Cleveland, OH to @Account Closed have both purchased turn key from out of state and have had good experiences. They both did a phenomenal job researching and visited before they purchased. I'm sure they'd be willing to weigh in as well.

I think the BRRRR method is definitely market/location dependent. Here in Cleveland, the numbers really work. A 100k house here can get you $1,000-1,400/mo in rent. If you keep your total cost of entry below $65k(Which is really easy here), you've got good cash flow and your money back on the refinance.

Cleveland is the land of milk and honey right now...

Local MeetUps and REIA meetings are always great places to start. My biggest question for you though is if you're looking to do turn key or another passive investment, what would you need a hard money lender for? Hard money lenders are typically for cash-strapped flippers who need cash now to pick up a distressed property. The interest rates are high and the loans are typically only for folks who are going to sell the property after the rehab.

 Definitely! Look it up. I'm sure you'll find plenty of folks who do.

Hey @Luke Capozzoli! Welcome to BP!

We've been working hard here in the land of milk and honey (Cleveland, OH) for 20 years. We've helped a lot of OOS investors connect with great cash flowing rentals here. 

@Sammy Lyon

For 80k in Cleveland you can get a duplex that's bringing in $1,300+ a month in rents. Or you can use the 80k as a down payment on a fourplex that's getting $30,000 in annual rents. It's a great time to be in Cleveland.

@Sammy Lyon is from LA as well and is just starting to invest in Cleveland. Sammy has done a ton of research and decided on Cleveland. I'm sure Sammy would be willing to share some insight.

If you want to look into Cleveland, I'd love to be a resource for you!

Hey @Parius Futch welcome to BP!

We've been helping OOS investors connect with turn key properties here in Cleveland, OH for a couple of decades now. I'll answer your questions with some bullet points...

What are the advantages of turnkey? The biggest advantage is that it is passive. No hammer swinging. No toilet fixing. Just keep your PM accountable. If you finance the property, your tenant is paying the mortgage, growing your equity.

What are the drawbacks? You're obviously not getting the same returns as you would if you had bought the property in a distressed condition, fixed it yourself, and got it tenant occupied all on your own. Like @Rob Barry said, there's not as much meat on the bone as if you had done all the work yourself. But you need to be honest with yourself, do you have the time to do all the work yourself and do you want to?

Who are the most trusted turnkey providers? That depends on the location. What markets are you looking to invest in?

What should I be looking for? Experience and honesty. Volume isn't always the best indicator. Referrals- meet other investors that are doing the same thing and ask them how their experience has been.

I agree with @Ali Boone, it's hard to really understand what you mean and what you're looking for. PM me if you have any further questions. I'd love to help!