All Forum Posts by: Saul L.

@Tim C.- From my experience, having done both (Turn Key and CF) there is no real comparison from the point of view of "passive" investing. Admittedly my TK properties were in a very difficult city (Detroit) with all the risks and hassles that go with that, but I dont see how TK anywhere (that is worthwhile doing- ie giving you 2 figure CoC returns) is going to take up less than 10 minutes of your day. There are always issues to be dealt with and decisions to be made- maintenance, vacancies, etc etc. If you have a truly fantastic PM you may get near there but I doubt this is the norm.

I am migrating all my long distance  holdings in the USA and UK to CF platforms at the moment and so far am very happy with the results. The only disadvantage I see with CF as you have already pointed out - is the inability to leverage (although I am finding already leveraged opportunities to buy into in the UK)

@Janann Chan Welcome to lesson 1 for foreign investors in Detroit. -( and I wont say I told you so)

Your lease with the tenant will define who is responsible for DTE. I am prepared to hazard a guess that you haven't read the lease, or probably haven't even received it.

Stay away from DHC.  I have found them very difficult to work with. Taylor Housing Commission is far better. I only own 2 Sec 8 properties and have far less experience than @Jeff Rabinowitz above - but when I compare  my experience on these 2 properties with my other non sec 8 properties - I have found that the sec 8  have been more stable and tenants more cooperative on all fronts. (They are normally  very concerned about losing their eligibility- so they dont play around). 

@larry fried @ian ippolito

I am invested in some of the funds Ian mentions above and have looked seriously at the platform Larry is referring to. 

IMO the main difference between them is the scale and ability to do DD.  The 10 property portfolio is an existing portfolio of cash flowing properties, each if which can be transparently analysed and assessed. I think it is more like buying Turnkey, but instead of putting 40-50 K into one property with all the risk that gos with that, you can put in as much as you like and get instant diversification across 10 properties with management continuing to be co-invested at 30%.

I think the funds Ian mentions are more comparable to Reits. You are putting your money into a fund that will be aquiring 10s or 100s of homes without any control or specifics for the small time investor. It's more a bet on the management and method than on the real estate.

Hello Gyora,

Welcome to BP-  a truly incredible community of RE investors. 

I am also from Israel and have been investing in the US for the last few years. BP has helped me tremendously.

It is a very very different game to the way things work in Israel.- a lot of opportunities, but also no shortage of pitfalls.

Am happy to share my experience - send me a private message if of interest.

Best of luck,

Saul

@Jonatan Nir

I would second @Jon W.'s recommendation above - I use them as well. I believe I already mentioned them to you. You can reach out to @Max Nussenbaum on BP as well.

Shalom @Adi Dahan - Welcome to BP, always nice to see a fellow Israeli.

I have found BP to be an invaluable resource regarding my US Investments.

If you are interested in Indianapolis, you might want to reach out to @Sterling White- They have an interesting crowdfunding model which can give you a piece of a 10 property performing portfolio - greatly reducing your risk and headache.

All the best.

@Frank Inman - Yes- waiting 3 years to break even is bad. - and in any event it is an imaginary scenario. You will not be seeing 800$ / month. Most likely it will take you double the time to break even - so you only start reaping any profits there might be after 5-6 years. Remember as well you will not be able to extract your capital at the price you bought in.

@Frank Inman - I've been there and done that.  

All I can say is stay away from Detroit turnkey. Detroit  is not for the out of state investor. 

It is a market like no other. The turnkey will be flogging you a 5-10k pig with lipstick and taking all the profit on the front end. You will never see the returns presented on paper, - and you wont be able to realize the property for the price you bought it.