All Forum Posts by: Adam Sieg

Came across the concept of real estate professional recently and was curious if anyone had elected to pursue this status.  I understand the time requirements and being part time the 50% shouldn't be an issue.  Just curious if anyone had any thoughts or opinions on this. Thanks

Hi @Tim Murray!

When we started our real estate journey, turnkey was the only option that really made sense to us.  We found this model provided us the best way to get into real estate due to our time and geographic restrictions.  It looks like @Zach Lemaster commented on this thread, so I would recommend looking into them.  We've been very successful working with him and his team at R2R.  We purchased 3 rehab turnkey properties about 1.5 years ago and all have been cash-flowing quite nicely without significant issues.  We had some tenant and PM issues with one but Zach has been beyond helpful during the process to get tenants to pay as well as transition to a new PM company.  We are currently waiting on 3 new builds in Cape Coral and are excited to see how those play out.  I would recommend having a call with them to see if they meet what you are looking for and in the potential markets you are considering.  Would be happy to provide more details!  Happy Investing!

Hi @Anthony Taylor! Welcome to the world of real estate investing!  It can be overwhelming as I'm sure you are learning.  We were excited about our journey but with all of the information we weren't actually making any moves.  Given our limited time being healthcare professionals and a newborn on the way, we looked into turnkey properties.  They ended up being a great option for us as we could get into real estate but didn't have to go through all of the potential headaches you may find with other strategies.  Also, we could learn along the way so we could venture out to other opportunities when they presented themselves.  Not something a lot of people talk about but I personally think it is a great step for first-time investors.  We worked with rent-to-retirement and have been very happy with how we've grown our portfolio. Happy to share more!

Hi @James Bowden!  Welcome to the world of real estate.  I'd be happy to share some advice or experiences that I've had.  I primarily invest in turnkey properties and would be happy to share more if you are interested.  Feel free to reach out if so!  Happy investing!

Hi @Nitesh Gandhi - I started out my real estate investing journey using turnkey. Others have stated these aren't the optimal method to get into REI but for me it was honestly the only one that could work (outside of REITs which I didn't want). Being a busy health care professional with a newborn on the way I didn't have time to learn the ins and outs of other strategies. I also wasn't about to try to BRRRR. For me turnkey made the most sense - plus I could learn a lot while someone essentially held my hand through the process. I didn't have to worry about the rehab/contractors, PM or placing tenants. I used rent to retirement - and have purchased 6 properties through them. They've been very helpful on an ongoing basis and continue to provide support when I have issues. Obviously, it depends on the market you are trying to pursue as most TK companies are somewhat limited. However, I would check out rent to retirement and see if this could be an option for you. Also Zach Lemaster is a great resource to have. I'd be happy to chat more if you have questions!

Hi @Brian Choi - I'm in a similar position that @Patrick Bavaro mentioned.  We purchased our first property early 2021 and it is essentially completed but are awaiting inspections which seems to be a common issue currently.  I think when we purchased they were around $230k and we used a construction loan (lender doesn't do these anymore).  As Patrick mentioned rent is anywhere between $2250-$2350 so even if we do a cash out refinance we will still cash-flow quite well.  We purchased 2 more properties at the end of 2021 but used a private lender for those (only option at the time) and are awaiting permitting.  I think these are great opportunities - if you can wait for them to be completed. Let me know if you have additional questions!

I've been working with R2R for about 2 years and have 3 new builds in the Cape Coral area.  Overall, the experience with R2R has been very positive.  I think what you'll find with any of the new builds in that area is they take some time to complete.  I purchased my first property last year and it has been "completed" but they are waiting on final inspections which I've been told the city is backed up for weeks.  The other 2 new builds I purchased at the end of 2021 and am awaiting permitting.  I've spoke with @Zach Lemaster with R2R several times about the new construction there and he has a very good knowledge of all the ins-and-outs.  I think they continue to evaluate their builders so to give the investor the best opportunity for success.  My first build was financed as a new construction loan but I don't believe that lender is doing those loans anymore.  My current builds were private lenders.  Again, I think Zach continues to work with lenders in that area so he would have the best insight into what to expect with the currently available opportunities in that area.  Let me know if you have additional questions!

 Agree completely - its hard to be able to predict that far into the future but I still feel the trend and demand will prevail.  Even with rising interest rates, I think the properties will cash-flow.  They may not cash-flow as well but will still be positive.  Additionally, I always think that the rent you start with will continue to go up so cash-flow will inevitably increase overtime (as will the value of the property).  I think all you can do is get as much information as you can and commit to a decision.  If it works (or doesn't) reflect on it so that you can use that knowledge in the future.  

 Hey @Tim Mieney - I do, especially if you look at the current price of real estate down there.  I feel the market is going to continue to be favorable and it also provides you with multiple exit strategies if it doesn't work for whatever reason.  If you look at the price points for similar models of home on an ongoing basis, you can see they continue to go up.  I'm optimistic that there will continue to be the need moving forward.

Hi @Tim Mieney- 

This is quite the DD post! I wish I would've seen this prior to my REI Turnkey journey!

With that being said, I have invested with 2 turnkey providers, R2R (6 properties) and Norada (1).  The Norada property is a new build in the Ocala area so I don't have a lot of background with them.  They've been communicating regularly and have been easy to work with thusfar.

R2R - I've had the most experience with and the relationship I've developed with @Zach Lemaster is probably why I have 6 properties from their company.  As with any turnkey company, you are paying a premium for your property but on the flip side you avoid all of the "risk" and effort on the front end.  For me this made sense in my situation and I knew it going in.  I have 3 rehab properties from R2R and 2 have outperformed their proforma and easily cash-flowing $250-300 per month.  The other, has been more of a struggle largely due to the tenants put in place and the PM company.  I reached out to Zach early on to get his assistance and he (as mentioned earlier) is very responsive.  We weathered the storm, got new tenants and aa new PM company in place and were able to increase the rent as well.  He was also able to recoup some of the damages done by the tenants as well.  I will say that, even after you've purchased the property, they are always there to support you along the way.  For completeness, I have 3 new builds with them in the Cape Coral area - 1 is nearly complete and the other 2 are waiting permitting.  

I've had a very positive experience with R2R and would recommend them.  I do think it worthwhile, to have a discussion with them to ensure they meet what you are looking for.  

Just my 2 cents!  This was a very helpful breakdown!