All Forum Posts by: Alexander Price

@Galina Krichmar @Josh Young @Bobby Kohler

Now that I am typing from a computer which will allow me to use @mentions I'd like to let the people who asked questions know I tried to answer them above. 

That said, I was turned onto the TK option, specifically in Memphis, by @David Hutson. I can answer specific questions about this transaction, but if you guys have questions in general about Memphis turnkeys, he is the man. He invests via turnkeys in Memphis actively. He mentored me and got me lined up with two TKs out there. Not only that, but after guiding me, he took the time to look at my analyses, my property selections and to introduce me to many of the great persons out in Memphis. He even was supporting me via text while I signed my closing documents. Part of the success of the deal was due to him.

Hopefully this gets people excited about one of the many ways to invest in real estate, and lets them know there are many people out there willing to help.

Good luck all!

@galinakrichmar

Rent to Rewards based in Memphis. You can Google them.

@JoshuaYoung I take that back, there was a renovated walkthrough my wife watched that she later showed me some. It appeared to be pre tenant but post rehab.

@DouglasSkipworth Hopefully when I visit Memphis I will be looking at multiple properties that I own. I will definitely try to touch base with you and others that helped. Including Parker.

Video walkthroughs are offered. I did not do one. The floor plan was basic and the pictures were enough. plus the property came with a tenant so an additional walk through would have been a hassle. 

As for no deferred maintenance many TKs offer this with a guarantee. My guarantee is for 2 years. 

I did not. I was comfortable with the walk through pictures plus my inspector visited three times and kept me up to date. Plus my inspector gave me a final report to confirm the maintenance was completed. Since the company I worked with offered no deferred maintenance the neighborhood and cash stream were more important. I did pay to have my inspector visit multiple times. This is a consideration to account for.

The neighborhood details I could ask about and research. The money numbers I could estimate. 

Consider it a cardinal sin, but I trusted the people out there I was working with. I would not do the same if I did not use a turnkey or the turnkey did not offer no deferred maintenance on the property. Trust was a big factor.

@JeffAppleby 

Thank you. Just figure out what you want, research it, figure out the first step and the take it. Good luck!

Hello all. I am excited to announce that I closed on my first property. The means for which I accomplished it was not how I envisioned, but it is done. Firstly I'd like to state that this first property was done using a baby step approach, turnkey. While not the full the process of rehabbing and refinancing like the BRRRR approach, it did offer me a good understanding of the process within my constraints (time being the big one).

I approached this property like I did when I was looking on my own before I discovered turnkey. I found properties I liked with a turnkey company that I was comfortable with. I ran the numbers on my own to compare to their numbers. I asked many questions and researched the neighborhoods using www.city-data.com, crime sites, Google street view, and of course asking questions on BiggerPockets. I made sure to follow my target area, Memphis, with my keywords, which allowed me to discover who could help me online. I also researched the turnkey companies on the BBB, on BiggerPockets and via searches on Google. Phone calls were also helpful as were the many e-mail exchanges.

I now own a nice SFH. It cost $75,000 and after maintenance reserves, vacancy reserves, PM fees and PITI I manage a 12% COC. I am happy with this.

The main things I have learned from this experience are to use inspectors on your home as many times as you need to. This is vital when using a turnkey to ensure there is no deferred maintenance. The other is to get quotes for anything you may need (inspections, insurance, taxes PM fees) ahead of time. My closing costs predictions were close overall, but I found that my insurance prediction was off significantly as was my home inspection cost. I got lucky here that my lender was able to come in way under on their predicted closing costs.

Using a turnkey was a little odd for me at first. After researching Rent to Rewards, which is run by @BertMiller and @HansGuenther, I became very comfortable with paying to have a very easy transaction. The turnkey process through them was seamless; they made many concessions to speed up closing and addressed all my issues quickly. The even managed to negotiate the contractor paying for my inspector to return to the property to verify maintenance was completed. I received the property with no deferred maintenance. This was huge. They never rushed me and even reached out to me personally after the transaction to ensure I was satisfied. Highly recommend these guys.

I’d like to thank the many people on and off BP that helped me accomplish this:

@DavidHutson @DouglasSkipworth @JamesMartin

@DavidHutson gets special credit for meeting me in person and fielding my phone calls, e-mails and text messages on all questions minor and major. Thanks!

I apologize that none of my name links are working. Hopefully credit is received where it is due. 

I think @James Martin and @Douglas Skipworth can help you. My username links don't work from my phone but they will likely find this post. Regardless if you use them they both answer questions and are insightful to the Memphis area.

If he runs a business as a contractor have him bid against others. Don't include him on the deal but offer more work based on your first. If he proves consistent then bring him in and let him have a piece, but get your T&Cs taken care of ahead of time. Also, use a lawyer.

I think @JamesWachob sells portfolios. They are in the Memphis area. You'll have to forgive my username link is not working on my phone app.