All Forum Posts by: Trevor Lohman

Thanks guys! 

I understood the basic concept but was wondering if the definition just varied, or if I was missing something. 

From what you all have said it sounds like it does vary but generally speaking refers to a certain type of buy and hold strategy. Makes sense! 

Thank you all

Hey guys, I've posted a few deal analysis reports on properties I've found on the MLS or from an agent OOS I've gotten a lot of "don't do turnkey" which I'm sure is good advice generally. My question is though, if I find and buy a property on the MLS after making lots of offers and getting what I consider to be a decent deal, and then I find a property manager to manage it... is that turnkey? I put it all together. Granted it's not much work but I guess i thought turnkey was a little different. I thought turnkey was when someone rehabs a house, puts a tenant in it, then sells it to me. Maybe it isn't much of a distinction I guess... because either way I'm paying retail for an out of state rental that someone else puts a tenant in. Which is turnkey? Or are they both? And does it matter? Lol

@Taj Hayden

What is your overall reason for getting into real estate?

I'm just starting out also, and trying to slowly accumulate as many cash flowing rentals as possible while I keep my full time job. For that reason flipping seems a little more daunting to me.

Are you looking to do this full time? Or at least be more directly active in the investments? 

That's awesome and If so, I think all of your ideas are really good, @Sergii Khromchenko's as well. 

If you have a full time job and are just looking to put some money to work passively. 20k is enough to get into a rental too. You won't get rich quick going that route though that's for sure. But it is time tested and allows you to get some experience. As an example my first rental which I just recently bought was 18k all in with a 25% down payment and it had a 1.5% RV ratio. I bought it retail on the MLS and it was recently renovated. Not sue if you want to leave yourself with so little reserves, but I'm sure you could find a cheaper house or save a little more.

Good luck to you! I'm curious what you end up doing, let me know!

@Linda Weygant

That's interesting. I will talk to my lender thank you. I guess it will come down to whether or not it's worth the extra cost and hassle for the first property. Any opinions?

Hi BP,

I have a quick question about partnerships,

I know there is a lot of info on here about LLCs and partnerships, but I always walk away a little unclear after reading. 

The idea of pooling money with like minded people is very appealing to me. I've bought a couple houses on my own now, but I like the idea of having a group of people with aligned interests and varied skills. Not to mention it seems like a great way to raise capital and do more deals more quickly and therefore gain experience faster. 

So... a friend of mine and I are thinking about doing a deal together. A small one, (one that won't devastate our friendship if things don't go well). 

The hope being that we will do more of these deals in the future and develop a portfolio. Maybe someday even bring on new investors and do even more deals. 

So.. this seems like a situation where an llc would be beneficial. I know it isn't necessarily required, but it seems like a good vehicle to write up a clear strategy, divide ownership, and mitigate risk.

I know an LLC can't purchase a property. I also know about the due on sale clause (Which is rare on performing loans correct?).

So... here's my question. Would the best option be to put title and the mortgage in both of our personal names? Can we then transfer both the title and mortgage to the LLC? I would assume we can transfer title, but it doesn't seem like we could transfer the mortgage. That seems like a turbotax nightmare lol, time for an accountant I suppose.

The other option would be for us to just pay cash which is an option as well and would eliminate a lot of these issues. I like the idea of leverage though. We were thinking of starting with an initial 100k investment. Maybe we start paying cash for one property and refinance? But then we're back in the same boat of an llc not being able to take out a mortgage correct? 

I'm curious if anyone has ever set something like this up with a group of friends or like minded people and how it worked for you. Also opinions about the use of debt versus cash in a partnership llc. 

This was something I thought I understood pretty well, until we actually started talking about going about doing it lol. 

Thanks for any advice guys, I appreciate any feedback on a topic that I know has been hashed out numerous times on this site. Now that I'm actually doing it I just want that personal advice if anyone is kind of enough to offer. 

Thank you all!

@John P.

I'm looking at a handful of markets, Parts of the atlanta area, indianapolis, jackson, jacksonville, oklahoma city, kansas city, and memphis. Hopefully 3 or 4 homes in 2 or 3 cities. I hadn't even considered the benefit to a no income tax state. I had just planned to have to file a tax return no matter what. That's a good point. 

A few people have tried to steer me away from memphis for somewhat generic reasons. crime/very high renter% etc. I'm not flat out opposed to it though. It just seems like everyone is buying houses there. Maybe that's a good thing!

@Susan Maneck Looks like it sold,

It was over by Jackson state university. I'm always looking to meet potential team members though! Please introduce me if you don't mind, I would really appreciate it. 

@Matt R.

Touché my friend touché.

I sure wish my dad had bought those beach front homes 50 yrs ago, no doubt about that!

@Nathan Gesner

Love this site, I had this exact same question. Nathan, I'm out in CA so am not familiar with basements. What in the world is an egress window? Haha I'm assuming it's a window through which you can "egress" out of the house? How does that work? Do basement walls extend a foot or two above ground so that you could install a window that opens? If so 2000 bucks sounds pretty steep, but that's probably because I'm used to doing my own work on my house. Or maybe it is more extensive than I'm picturing. 

Anyway, sorry for the totally rookie question, and I'm happy to hear I might be able to add a bedroom to my 888 sq. ft. basement. Thanks for asking this question @Clayton Barnes

Wilson Jing Thanks Wilson, Yes management is indeed the question, The listing is through an all in one type of turnkey company, they're the buyers agent then the manager. I'm guessing they did the rehab too maybe? Anyway, I'm still gathering details and awaiting photos of the inside. The person I'm paired up with over there isn't super responsive to my calls or emails so I'm thinking they're not going to be the right fit. Are you local to jackson? Know any managers? Thanks for your input and great info, much appreciated

Wow thank you so much, This is great insight. I really appreciate you taking the time to write all of these addresses out, going to take a look now