All Forum Posts by: Brian Hall

Originally posted by @Soh Tanaka:

Have you tried city-data.com?

 Thanks, Soh! I'll check it out. 

Hey all. I'm researching markets in which to buy and hold out of state. I'm trying to find recent data on migration patterns. Price to Value and cost of living and all that are coming to me pretty easily from market to market, but the census data is getting really out of date that I've found. Is there more current info on if people are moving, or moving from a specific region? Any other population oriented keywords or context would be deeply appreciated. Thanks in advance!

Thanks so much, Noah! Great insight. 

Originally posted by @Noah Chappell:

@Brian Hall hey Brian! I'm a buy & hold investor in Minneapolis, not an agent or broker, etc. My 2 cents.. You're going to need some connection to or team in the place you're going to invest if you're looking to advance past turn key. I'd try to think of a midwest city w/ good stats (ex >250k pop, growing population, median income >3x median rent, low crime, diverse economy, etc) that you have a connection to - friend, fam, etc. At very least should be somewhere you don' mind visiting relatively often - you're going to be tied to this place. You can check out neighborhoods in this city w/ trulia heat map & choose somewhere low crime. I'd set up search criteria on Redfin, trulia, zillow to get notifications when properties come on market. Start calling realtors about properties, & call management companies in area to build team. Offer on interesting property w/ contingencies, then fly out for inspection, to meet management in person, etc. It will be a bit of front loaded work, but if you get comfortable w/ a city you'll do great from a distance & eventually you can pair things down to yearly visits, if that. 

Hey yall. My name is Brian. I have been doing turnkey single family homes for a while and am looking to make the jump to smaller apartment complexes. I have good relationships with turnkey providers through the Jason Hartman network, but am starting to feel like I need to deploy more cash. Need 8% or better cash on cash. Not looking for syndicators. Do you know of markets or wholesalers in markets that have inventory or can help me find deals? Do you reccomend certain books for learning how to source these types of properties? Realistically for us it is anything under 20-ish units.

thanks in advance. 

For the record, we’d be tearing it down and using it as a yard, parking an RV on it maybe or building on it down the road.

So we’ve got a tiny yard and we are in a cash position to possibly try to acquire our neighbors’ lot without needing a loan. The property Is in very very very bad shape. The 90 year old woman that lived there moved our recently, too old to care for herself. She’s got mental health issues. We are on mostly good terms with her but she gets very nasty. Has keyed our car, assualted our landscapers, and there used to be a meth lab upstairs. The neighborhood is mostly gentrified. This is like, the scary haunted house on the block 🤦‍♂️ The question is, we don’t know how to figure out what we should try to get for it, and we don’t quite know how best to approach. Any advice would be heartily welcome!

Originally posted by @John Akolt:

1. Yes, written partnership agreement.  Two problems: 1. you can't foresee every problem so you will have to work problems out--This can be an issue since it's family 2. It's family so even if it is written you won't follow it.

sound advice. Makes tons of sense thanks. 

2. Yes, property managers will do the work--cost about 10%+ of the rent, depending on the area.  

We use property managers, I guess I was more dreaming that there's some way I could give someone else the rather daunting task of managing a rather tricky and not-so-straightforward entity. Sounds like not so much. 

3. Better option.  It is a promissory note on the property.  If you don't pay they can and should foreclose on the property (makes Christmas uncomfortable).  Not screwing your sister.  Parents are being paid for the level of risk they are assuming--less risk, less reward.  Are you happy with 8%?--if you put 50% down a bank would be better. 

The idea is that we'd invest their money. I'm sure that if we were in different states and markets and spread out we could easily clear 8% and thus protect them and us and everyone. But ya foreclosure would be horrible. Definitely gives a case for equal partnership. 

4. I would avoid family deals unless you don't have other options.  Someone will always feel they did more work, etc.  You will be mad at your parents, your wife will be mad at you, your sister/parents will be mad at you/wife.  Hard to sue business partners.  Really hard to sue family.  It'll be great until the first down market and your parents need cash to pay for X or you need cash for the kids braces.  

Yuuup. You nailed it. Good grief. Business is just tough. Everyone has to be all in. Feels like this might just be the right choice... Push them over the edge. Force them to embrace the work of figuring it out on their own. Scary AF. 

Originally posted by @Ian Tvardovskaya:

1) I would suggest finding an investment strategy that will work for everyone. I know you only do turnkey, but maybe with your parents, you need to BRRR to get a large amount of equity for your dad and safety for your mom.

Thanks Ian! I guess I should ad regarding questions 1, I'm particularly interested in what kind of entity would be best formed, and how the legal side might be managed? 

Ok so. Hi I'm Brian. I'm new. I buy turnkey properties (don't diss me I have a solid day-job). 

This is my first post, and a rather vulnerable one at that, so forgive me in advance.

My parents will both be "retiring" within 6 months. I'm considering doing business with them. They have about 200k to invest and the returns we can get them with that money would help them land safely and actually retire vs worry about money indefinitely. (Yay/scary).

My wife and I are not seasoned investors although we can be very fastidious. We have 4 doors and have never invested with anyone else. We are entrepreneurs, so we have a certain degree of intangible insight through the hard knocks of starting/running businesses. This is certainly part of what causes us pause. LOTS at risk here...

My dad wants to crush it and make money in real estate, my Mom has trust issues and is feeling VERY cautious. She trusts us, but ways we can mitigate risk for them will probably be really good. 

Our plan would be to go in with them maybe even 50/50. 200k/200k. Slowly buying 8-12 single family units in linear markets in the midwest, keeping a healthy cash reserve, and coming up with a distribution schedule that is very conservative, one that can allow my parents to live comfortably. It feels like it would need to be iliquid, just distribute and don't touch the properties for 27.5 years or when they both die, but quite frankly Amy and I would love to be able to move money/re-fi/etc if/when needed. So here's my questions. 

1. How do you keep it clean and make sure everyone's interests and expectations are managed?

2. Are there vendors out there who would work hourly to help manage the accounting on something like this? I don't want to bury my wife in paper-work. We have two very young kiddos and all the real estate is hard on her. 

3. As an after-thought, what are the pros and cons of just holding their money and promising them an 8% return? This would be cutthroat in one regard as it would screw my sister as the properties would be in our name and build much more wealth for us vs my parents. I don't want to deal with family drama I don't like family drama. But then I also want to make this thing really cozy for my mother.

4. You think I'm a fool to even think about doing this at all? Danger danger Will Robinson? 

I am truly grateful for your input. Much love from PDX.