All Forum Posts by: Mark S.

@Jonathan C.

There are a few things that make me wonder when I read your post:

1. What was the goal for you when you bought the property and how did that goal align with what the turnkey provider told you about it?

If I look at my investments in B- and C areas I know that the longer I hold them, the better the numbers typically get. Your case with such a steep loss is pretty extreme in such a short amount of time, but still, I wonder if you bought this property for long-term hold or not?

2. Leveraged properties require patience even if your tenants pay on time and maintenance is limited. If you want bigger returns faster, you would want to buy better quality properties in quickly appreciating markets. So you had a plan, I assume. Was it a good plan?

3. You said you bought from the turnkey provider. They do not take any responsibility for anything and just dump all the costs on you? How did you decide that this was a good provider.? I can't imagine that @Engelo Rumora or any of my providers would do that. It's a matter of the systems they have in place to limit the risk of things like you describe form happening.. Do they have those?

4. I always recommend for my clients (and myself) to run the investment portfolio like a business and suggest to form an LLC (running as S-Corp), even with only 1 property. In your case you have a lot of losses in the time you own the property but these losses transfer through to your personal tax return, so you can recover some of it and not have to count the full nominal amount. Did you consider that?

In summary, if your goals are still similar to what they were when you bought, the location has potential, better vetting of tenants will avoid evictions, etc. it would make sense to keep the property and see if it can live up to the potential you expected when you bought it.

If you think you had false expectations or don't see a probability of recovery, I would also do the renovation and then sell. You can file losses again and the cost of the renovation.

Suddenly crypto investing doesn't feel so volatile anymore!!@

@Mark S.

Which offering were you invested in?

I'm in the middle of a few deals like this now unfortunately. It seems the finger pointing happens when things go south. I believe the best course of action right now is to assume that this all ends in nothing for the investors and attorneys fees for the attorneys. After that, I expect very little. A bit of a bummer but I guess this is the way it goes when we venture into less tried tried and true investments. If anyone does have a webinar replay link I would love to get a copy of that. Thank you. I never received the initial invite.

Hello

New to posting on biggerpockets forums but have been reading and watching many podcasts.   I’m a new investor interested in purchasing my first turnkey investment property. I’ve been looking at turnkey properties in Memphis between 100k and 115k.  With rates staying high, what is the consensus on purchasing all cash vs financing for the first property? I know leverage is typically the recommendation but why not buy all cash if possible and leverage the equity for future properties when and if rates decrease?  Less headaches when there are vacancies.   And if I leverage the equity in the future for additional properties my break even time period can be reduced.  To me seems like a good way to start with less things to worry about with a path to leverage the first property into a few more in the future.  Curious to get opinions from more experienced investors than myself.  Thanks 

Quote from @Andrew Frishman:

Just some feedback for the group regarding AHP fund investment.

I Invested in AHP fund. November of 2020

I have been requesting my funds back since 07 / 2023 (see below)

I haven't received a distribution on my investment since July /2023.

Every time i call to get my funds returned, they say..."sometime next month", for the last 4 months!!.

 They've been doing monthly updates via webinar and the info you're being given definitely isn't accurate. Basically, they have no liquidity and are working to resolve this (like they have been for awhile now). 

@Andrew Frishman

Which fund? I heard the servicing company laid off most employees and transferred the loans to another servicer (in some sort of agreement). I would assume they published it on sec website.

If you are in that fund I would not expect your full amount coming back to you. Hopefully you get something back.

Watch the investor webinar replay.  

Here's a question everyone needs to answer.  Why are you getting into long-term rentals?

"I'm getting into long-term rentals so that..."

If you want to learn about buy and hold, fix and flip, SFR, turnkey, small multifamily, hard money loans, or property management in Memphis, please subscribe to subscribe on YouTube or Facebook. Each week @Dean Harris and I cover it all!