All Forum Posts by: Chris Clothier

@Eduardo Cambil

I guess my hang-up is on what value you believe you are getting?  The words Turnkey and $58k do not belong in the same sentence.  Neither do $67k appraisal value and $1890 monthly rent.  

There is a massive disconnect, and I challenge you to ask yourself and the seller all the hard questions.  At a 58k sales price, how big is the property?  What renovation has been completed on the property, and what work has been deferred?  

Step back and view the deal from your perspective, as this is a strong deal in terms of cash flow and equity.  Ask why?

Why have no local investors snapped this deal up immediately and created a bidding war to get it?  There appears to be an enormous $ amount of additional "deal" money for savvy, experienced investors to use to lock a deal like this up.

Why would an investor sell a property cheaply with such a high monthly income?  Please don't think it is because they want to create a win-win scenario.

How in the world can a company sell a property that has been fully renovated, which is the only way to qualify and pass Sec. 8 inspections for that amount of money, and earn a profit and build in their buy price?  They would have to pay $15,000 to $25,000 to do any amount of work on a home and make a modest but small profit.  

After doing this for a couple of decades, these types of properties turning out to be legitimate good investments simply do not exist.  I know I did not directly address your questions, but I'm not sure even if you get good answers, this is a deal that makes sense from the description given.

We've originated a lot of business with them since 2010.  I can assure you with 100% certainty that if they give you a pre-approval letter, they will perform, provided no other issues pop up.

@Jay Hinrichs Interesting.  Let's chat early this week if possible

@Andrew Syrios,

They are a quality company.  However, in what capacity are you asking?  I wasn't aware they were originating anything recently. 

If you are looking into Turnkey, another quick read is Turnkey Rental Properties 101 by @Ali Boone.  It's another one you can find on Amazon, and she is an actual turnkey investor so she talks from an investor perspective.  Mine is written from the perspective of a provider giving advice to investors on the process.   Those two books will give you a good foundation for taking that passive route.

There is also The Journey to Simple Cash Flow by @Lane Kawaoka.  I haven't read this one, but I think Lane gives really good advice here on BP and he is also an investor giving his advice from a standpoint of someone who has done what you are looking to do.

@Chad Carson has a book Easy Real Estate Investing for Beginners that focuses on passive income.

I like reading the responses of all three of these posters here on BP.  They give good advice on the forums and all three are investors.  That would give you a half dozen or so books to read and look into.  Each gives advice and perspective and if you are starting out, I would suggest reading them before diving straight into the forums and asking about passive income or turnkey real estate.  You will likely be able to ask better questions after reading the books we've written.

Good luck as you get going.

 I don't want my post to come across as a tacky promotion of my book.  Someone else had already mentioned it, but the moderators removed their post.  I am guessing they tried to link to it and used a link outside of BP.  So, I put the rec. back in without a link!

It is geared toward passive, turnkey buyers and not simply out-of-state investors, so keep that in mind.  best to you

Great recommendation from Min Zhang.  I love David Greene's book, especially for those wanting to be more hands-on and in control of more of the decisions and processes.  It can be daunting, but David does a good job of laying out how to.

The Turnkey Revolution is a book I authored seven years ago about how to buy turnkey real estate.  It lays out steps from researching markets, why to choose a market, finding a team and services, and then how to organize your passive investments.  I won't link it here, but it is available anywhere you buy books. 

@Steven Weadon

Sounds like these are your first three investments?  Congratulations on putting together a plan, taking action, and getting started!  You are already ahead in the game just by being able to take positive steps and get going—best of luck to you and your investment portfolio.

In that scenario, do your current contacts in FL have the ability to help you add an SFH to your portfolio? Again, it takes time to build a relationship with a service provider, and you will likely get the best service and pricing and have the highest comfort level with an existing relationship.

My family's company manages single-family investment properties, and I would suggest, based on my experience, that you work with those with whom you have a high level of trust first. I get no benefit out of giving that advice.  I think it is your highest and best probability of finding an investment you are comfortable with.  If that's not possible, there are any number of markets you can look into for investing, but it is the relationship and trust that will be your biggest hurdles.  

 Sas,

First, you did a fantastic job of taking action with a plan and reaping the rewards. Congratulations on owning three excellent properties. I would rank your results above average without question.   

My advice would be to stick with exactly what you know.  I speak with many investors who think real estate is a never-ending trajectory of upgrading and iterating into more significant, "better" investments.  BP forums can certainly feed into that perception, and it induces a bit of FOMO.  You didn't mention changing asset classes or anything along those lines, but you mentioned hurricane concerns.  I believe those concerns can be mitigated by avoiding close coastal properties.  Based on what you've shared, I would not change anything.  You know the markets and have experience, including contacts and relationships you trust.

I like the idea of purchasing another condo in the same general areas where you have experience, focusing on staying inland where hurricanes may be less of an issue. There is no learning curve and no new relationships to build. Your hurricane concerns are valid, but the price points you mentioned seem well-positioned for affordability and demand while providing nice revenue.  

Some of the best investors I have had the good fortune of knowing were very steady in product, price, and location, and their idea of diversification was purchasing additional units with less concern about changing cities or products.

You've done a heckuva job already putting together your portfolio, and I'm not sure I would look to go to another area and start over.  The juice may not be worth the squeeze.  Best of luck to you -