All Forum Posts by: Ryan Planchon

Since inventory is low, builders have ramped up production to help meet demand.

A lot of Turn Key providers have added new construction to their line up of products.

Some basic things I see:

Pros:

Low Maintenance

Capex is father out

Lower property management fee (About 2% lower from usual advertised rate, maybe because of reason above?)

Cons:

Cash tied up in down payment

Higher price, thus a usually less then a 1% rule. I see 0.8% or lower from what I have looked out.

What else? Am I wrong about items above?

I am ready to take action.  Turn Key would be the easiest way for me to go.  With the cash that I have on hand I think I could purchase 4-5 homes out of state with a turn key provider.  This would obviously tie up my cash with down payments and stay as equity in the property.

I just got done listening to the real estate rookie podcast show 15.  It is giving me a "squirrel" moment.  In the podcast they talk about rotating your money so you always have your money working for you but have a plan to always get it back.  Like when you BRRRR.  

I can take action now and get a turn key pretty quick or use the cash as I try and build a network in a market somewhere and attempt a distance BRRRR?

I don't have a market picket out yet thus I have no distance network.   I also do have some worry about the market coming down 6 months from now but know I need education and a team.  The only good news is cash and financing isn't a problem.

I was just thinking the same thing.  I just found my local group, but I don't plan on investing local unless the I can find a screaming deal.  I still need to network!

I am considering putting my rental property in a LLC. I would like to figure out the setup costs, yearly maintenance costs and time involved to do this. My first property I am going to do this with is in FL if anyone has any examples.

Hey there local Teammates!  I am also interested in some Meet ups.

I have not found anything local either.  I am on some wholesalers lists and the properties don't work with my level of experience and are not in areas I want to be any ways.

I have started researching out of the local area.

@Rumbi Chakabva

I would be interested as well in seeing what is available.

Did everyone taking compassionate route miss the part about the tenant chasing the home owner with a bat?

Don't think that is a tenant I would want to keep.

Everyone on here has very valid and understandable points.

I think if you are starting to get your RE education, reading books, and watching video's on here and they tell you to make offers!!  So you do your very basic newbie research, run the numbers, you find that investor friendly number that works.  Your ready to take ACTION and make an OFFER!  Then you go to the realtor and they are the ones telling you NO.  That really isn't a action taking NO.  It is a educated opinion based on what could be years of experience of what could happen majority of the time of why you shouldn't make an offer because it more then likely going to be NO.  Talk about taking taking the wind out of those action taking sails!  You didn't even get to the decision maker.

I have experienced this and it sucks.

I know there are human factors involved as far as saving reputation and not wasting time but but speaking from the buyers side, it can be deflating trying to get through a realtor so you can make true action steps.

I did like the advice to go directly to the sellers agent and at least make a verbal offer and start a conversation.  Not sure if this is good or bad advice but it is a action step that could get you to a Yes.

Love the thread!  

@Christina Tkacs I just started to look into Turn Key so thank you bringing up a great point. My local market is to expensive for me to BRRRR, at least at my experience and network level at this point. If I were to attempt a BRRRR it would have to be local one first. Podcast 384 shows the risks involved when doing distant flips or BRRRR.

@John Castillo   I would say your doing great.  I would say I am in a similar situation.  My local market is pricing me out to attempt a BRRRR.  I am starting to look in to OOS TK due to the prices that I can't get here in Miami.  At my personal residence the Iron pipes collapsed so we pretty much had to do a complete remodel of our house.  I was a quasi-GC and was able to get the job done with doing some of the work myself, while still working my W2 Job.  So I always know it can be done, but my local numbers don't make sense at the moment to BRRRR.  

Where do you factor in additional costs for property management?  Such as for a new lease or renewal?  I saw that some property management companies charge 1 months rent or 1/2 months rent for those services?  Is that accurate?  Most of the educational materials I have seen on running the numbers just talk about a percentage per month for property to do a deal analysis.

I know that could be the case if you are just looking for tenant placement and you are going to self manage thereafter.  But are those fees still accruing as they are taking a monthly percentage?

If that is the case and when doing a deal analysis, if they take a fee of 8% should you put a higher percentage to be able to cover additional fee cost?  Or is your cash flow eaten up the first month for a new lease and then again for lease renewal?

I am new and haven't ever dealt with a property management company yet.