All Forum Posts by: Adam Schroeder

Did a podcast interview with Highlands Mortgage about this very topic recently, contact info for the lender is below. They do HELOC and HELOANs. Lender name is below; message me if you need/want contact info (I make no money off you using them but BP won't let me put contact info).

Graham W. Parham - Highlands Residential Mortgage

Best of luck and glad you're looking for ways to put your equity to good use!

Quote from @Diana Jing:

@Juliana Molina

Once we came to this conclusion on what the right path was for us, we decided to go the TK route to easily diversify into markets that we wanted to invest in outside of our local market. This allowed us to scale easier over time & have much less time/stress involved in building our portfolio. This was the right approach for us as we wanted to build a portfolio of rentals to supplement our retirement. We were not looking for a way to buy ourselves another immediate job like we did with flipping/brrrr. We are very happy still with how things are going, and very happy with Rent To Retirement. Their systems, professionalism, communication & ability to resolve issues that arise when they come up is above anyone else in the industry in my opinion. If you do some research on this site, you will see a tremendous amount of positive reviews about them & I've shared more details about my specific experience on this thread.  

Stories like this are what make me feel good about what we do here at RTR. Seeing investors successfully build their portfolios, and being allowed to be a part of it, is an incredible thing.

Thanks for allowing us to be a part of your journey!

Hey Florencio, just responded to the email you sent me concerning this. As many others are saying here, inspections always come back with issues (even new construction), but the build team will fix what's on the report. With thousands of things being done on all builds and rehabs, things get missed or messed up. Everything will be fixed before you close, however. 

Quote from @Steven Taylor:

@Eduardo Tanamachi  ...One thing you MUST DO is get an independent inspection regardless of what the Turnkey provider says or provides.  "Turnkey" means different things to different people. 

Good luck!
S

Absolutely, 100%, couldn't agree more. Two things someone can do that should send alarms going off in your head is to pay all cash and skip an appraisal, and to not get an inspection report. You should get an inspection report on everything, even new construction. Something is always missed (nearly always unintentionally). You could be the renovator yourself and if you got an inspection you'd be shocked at what you needed to do based on the inspection. 

Now if they provide you with a 3rd party inspection and you send the inspector out to verify things once the fixes to the initial inspection have already been done, that's fine in my book, but it's up to you to decide on that one.

Originally posted by @Kumbi Murinda:

I'm following! Congrats first of all. I plan to do some more DD into R2R, I have a friend with a few properties through them. Wish you luck.

Kumbi, happy to hear your friend has given us a try! Happy to talk about who we are and what we do, and help you find properties to move you toward your end goal. The first step is to schedule a call with us, which you can do on our website. 

Congrats on the first close Brian! Look forward to getting the rest of the process done and that cash flow going.

If your lender is telling you 5.2%, and your credit and DTI are good, then you need to find a new lender. Rates on investment properties with 20% down right now are ~4.25%.

It sounds like you two may not make the best business partners. Both of you have ways you'd like to invest in real estate that can be highly successful, but they're not compatible. If neither of you is willing to change your ways then it's probably best to end the partnership now before it sours your whole relationship.

Originally posted by @Bill B.:

Those are usually the properties with problems so they should be found at a discount, make sure you’re not paying retail for them.  

I second Bill here. Anything you buy with a tenant in place you should assume is going to come with a decent bill for your first tenant turn. If that doesn't happen, great, but you should assume it will.

One option you could go with is finding a provider who sells properties that can be approved for (and make sense for) subsidized housing. Once you get on the subsidized housing list you'll have tenants finding you pretty quickly. Don't fret over a one month vacancy finding a new tenant. Sure getting rent is better than not, but getting a good property is worth the wait if needed.

Originally posted by @Jake Drappi:

@Adam Schroeder hi Adam - I wanted to see if you could share what parts of Florida are you referring too? I was looking at that market and would appreciate the insight. Thanks

I work at Rent to Retirement and we are loving the southwest Florida area in and around Cape Coral. The population is booming and we're able to buy and finance new construction for ~275k that is currently appraising at 360-380k