Anyone has experience w/ Jax Wealth Investment (Jacksnville, FL)?

Question

Hello Bpers!

I am new member at BP and this is my first post! I have been a silent consumer of the wealth of information and experiences BP has to offer. I immersed myself into reading and listening on the topic of real estate investing over the last 2-3 months and started making lower than list price offers on the SFRs in Alabama and Indiana. Nothing has worked out yet but I have already learnt a few things.

Recently I have become interested in Jacksonville, Florida and was introduced to Jax wealth investments. My question to you all is if you have any experience working with them? Since it is my first investment, I am extremely cautious about everything. So if anyone has any experiences with them, please do share here. There is another thread on the same topic but it was old and does not answer the question.

What I have learnt about Jax wealth investments is that they are into new construction in slightly better neighborhoods of Jacksonville which sounds great! I also spoke to the founders Jim/Jen and everything sounded good! But as I said, first property and I want to get some feedback from more people!

-Sam

Larry Fried · Answer

I am aware of this company and have been for some time.  I have not worked with them however.  I would add to what is said above that I highly advise a trip to the area to see the homes they are building, the neighborhoods they are in, and most importantly meet the people within the organization.  Also, a caution if you are looking at new construction as rentals in JAX, chances are when you factor in maintenance and vacancy/placement over the long term (soft costs) and you are only say putting 20% down, you aren't going to cash flow much if anything.  These are appreciation plays IMHO.  Of course if you are a cash buyer then you can cash flow, but the ROI is going to be low.  Don't accept the numbers the company provides, as they are almost always optimistic projections and may not even factor in soft costs.

James Wise · Answer

I've never heard of that company however if you follow the punch list below anytime you buy out of state you'll mitigate your risks quite a bit.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.

Sastry Srini · Answer

Yes.. I am with Brandon on this. While good experience with Brain Scrone and property Management definitely need improvement.property management company

Sameer Singhania · Answer

I have not purchased with them yet. I backed out of the western way quad late last year simply because I needed more time and research before I committed. I visited them in Dec and they showed me around - sample properties and locations. I am ok with the quality of construction but felt some of the locations were too rural for my taste. But if something comes up in a decent location, I will purchase with them if the numbers make sense.

Lori Buffington · Answer

I bought a handful of houses from Brian Scrone and company.  Pros: good returns, management and in some cases tenants already in place.  Daniela is great to work with, very responsive.  Cons: property management has been unimpressive to date. not terrible but definitely not great. Condition of property wasn't as updated as I expected. Repairs requested were agreed to but not always finished.  No additional information was offered -- you have to ask all that is important to you.  I recommend not just home inspection but also roof, well and septic inspection if applicable.  I'm sure price was higher than market but I didnt' have time to find homes and do a bunch of due diligence on my own.

If you have specific questions, feel free to message me.

Laura E Agüero · Answer

how did it go? did you buy with them? can you share your experience?

Brandon H. · Answer

For additional information, the company used to be called "Jax Investments".  They also appear to run a related business called "Holistic REI" or "Holistic Investments".  They all are pretty much the same company it seems.  I had a good experience working with Brian Scrone and his team.  My complaints primarily center around the property management company they recommend (Suncoast) who are, at best, marginal.  Obviously, Suncoast is a different company with different people so I cannot fault Jax Investments for this.

Karen Benzo · Answer

I agree with James Wise. As long as you do your due diligence and have a system or plan in place you mitigate potential risk.

Also, while I don't know the company, I do know that the greater Jacksonville are is a great choice with large growth potential.

Anyone has experience w/ Jax Wealth Investment (Jacksnville, FL)?

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