All Forum Posts by: Alex Price

@Kyle Granes Real estate is definitely a great path to passive income but should be taken just as seriously. I'd definitely caution you about using all of your money. In fact use as little of it as possible. 

How is your credit? Do you have a solid number in mind in terms of generating cash flow that will give you desired lifestyle? Not exactly sure what line of work you're in now but as a caveat if you have no other source of income, do not leave your main stream. 

Then you will most definitely eat up your savings. Also have you considered partnering with someone who is already experienced and has skin in the game? That would save a lot of guess work. 

Fix and Flips are a good way to take your $100k and turn it into more. Have you studied different property types, investment strategies and what areas of real estate you'd feel comfortable investing? B, C, D class? 

Lastly are you looking at real estate as your only source of alternative income. While I know this is a real estate forum, there are lots of other business owners on here that are into more than just real estate as a business and there are other types of businesses that do not require physical labor. Many you can run from the comfort of your home or office and they do not require large capital investment. However I think you are the right path by seeking knowledge and I hope you find a niche in this business and become very successful. 

Just make sure you have a solid and proven strategy, use as much leverage as possible and calculate the risk before you invest. 

@Michael Muhammad are you referring to sale of property without being an agent or fee for another service?

@Joshua D. first let me start by saying that if there is an investment strategy that is successful for you than trading your sweet spot for speculation isn't always the best strategy. With that said, I've always seen where 1-3 family homes easier to flip but multifamily has greater potential for cash flow. When it comes to over all expenses, having 12 individual properties opposed to 12 units (in one building) management and maintenance with potential for comparable rent is easier. Obviously acquisition of SFR's vs MF depending on what area you are in differs. I'm in the midwest and it's a bit easier to acquire houses than buildings with 6-12 units and up. Also buildings hold their value better.

Lance Rush-Mills what cities?

Hi @Maria Dantas sorry you had to go through this. I approve everything that @Ellis San Jose said and will just add this. Just like you took a trip out there to check on progress after your spidy senses knew something was off, if you decide to invest out of state again then do this BEFORE sending a dollar. Make sure to go to the city, meet with the team, look at previous projects and get an assessment before investing. You'll be able to feel whether it's a go or not. 

Awesome indeed @Michael Beeman. I as well as others on this thread just got a huge spark from reading your post. Thanks for sharing!!!

@Matthew Powell I would recommend the other way around. If you don't have experience investing in a particular area or have trustworthy boots on the ground, then you should fly out and look at what you're getting BEFORE you make an offer. You'll be able to assess the structure, get a feel for the area and vibe of the city. That way if you decide to make an offer you have a higher level of clarity and certainty on what you're investing in. The price of a plane ticket and hotel can be much less expensive than property and management issues from 2.500 miles away. 

A couple of questions @Philip Gibbs how long has it been since the rehab was complete and the tenant was placed? I've dealt with this before from shady property management however I'd like to know if you've discussed all of their fees and it's in writing. 

For  instance there are some property managers that charge the first month's rent for placing the tenant and there are some who charge the security deposit. There are some that charge a flat fee. There are some situations where property managers are only used to rent the property but not manage it and vice versa. 

What specifically is the $1,600 for? As far is pertains to leaks and major mechanical issues, landlords are generally always responsible for that unless you have a special agreement with the tenant. 

Also how satisfied are you with the rehab? Just trying to gain info on the facts. 

Matt Scott 1. Being a turnkey provider is an actual business model that allows the turnkey companies to buy/flip and then buy/hold and then repeat. I seriously doubt if they’re selling all of their inventory. 2. Most investors going through a turnkey company are investing for cash flow so most of the time they are not value investors. However when my company was providing turnkey services we served as boots on the ground and allowed investors to pick their prooerty, our contractors would rehab and we would then turn them over to PM to place tenant and manage. We charged a set fee so fees weren’t built in to the price of acquisition so there was value an cash flow. This process takes longer but gives the best of both worlds. 3. Cap rate and ROI is dependent upon your market and purchase price. I know often times turnkey providers sell cap rates but do your research so you know what you’re really getting.

Houston maybe.