All Forum Posts by: Charles E Bernard Jr

AJ Singh I received several messages both here and personally about my age and starting out investing in rentals. I decided that all those people couldn't be wrong so I just decided to invest in a private equity REIT. Thanks for responding. Chuck Bernard

I was talking about buy-and-hold properties. When a tenant in California doesn't pay, it takes up to six months to evict them.

Not only are the housing prices too high in Southern California to get a break even deal but California is one of the least landlord-friendly states. I am pretty sure I will invest OOS.

Linda, I am interested in this too. I will be following you closely. Thanks, Chuck Bernard

Jason Carter, I am checking out Norada here while I have my finances analyzed for preapproval. I have in the meantime read several threads on Bigger Pockets about Norada. All except one was positive but the one that wasn't, didn't really match my investment goals. I am already retired at 68 years old and am trying to maximize my retirement income during later retirement years. I'm planning on writing into the bid a requirement for a tenant at closing due to what you wrote. I didn't know that about an LLC. I will check with the lender on that. As for the rehab being complete, at Norada Real Estate Investments before the deal is closed, you are able to hire a third party inspector to inspect the property and renovations and analyze the findings. Otherwise I wouldn't go with Norada. Another thing I am going to check on BP is to check out my proposed lender to see what experiences people had using them. Thanks for the information. I appreciate any posts. Speaking of posts I am up to 9 out of 10 posts on my BP membership. anyone know what happens at 10? Will I have to stop posting?

My name is Chuck Bernard and I am a newbie. I am considering purchasing a turnkey property. I have picked Norada Real Estate Investments as a turnkey property company. My proposed lender is Security National Mortgage Company and they are preapproving my finances before I make a bid. I am looking for a SFR property about $111,000 with 20% down in a "B" neighborhood, a three bedroom, in Birmingham or Mobile. I was wondering if anyone can point me to reading material on analyzing a deal. As I live in So California, I am unfamiliar with Alabama and would have to hire a third party professional to analyze the neighborhood as for comps and comparable rents. I was planning on doing this as soon as my bid is accepted. How do you go about locating such a third party? I am also planning on contacting a transactional real estate attorney to analyze the deal as well as start proceedings on forming an LLC at that time. Am I covering all basis of due diligence? Any information about analyzing turnkey deals would be appreciated especially links. Also as I am new on BP and I can't find any help links, I have used 7 out of 10 posts on the forms I have posted on. What happens after I reach 10 posts. Will I have to stop posting? Thanks in advance.

Joe Richardson, by contractor do you mean the guy actually doing the repairs or the turnkey property management? I am currently having my finances analyzed to see how much I can borrow on my first deal. If anyone can give me more information on how to analyze a turnkey property deal, I would appreciate it especially if it is a link. What I was trying to ask in the last post was how do you go about hiring a third party professional to tell you about the neighborhood comps and median rent. If by due diligence, once my first bid is accepted, I am going to go to a transactional real estate attorney and have the deal analyzed to make sure I am protected. Also, I plan on forming an LLC as well as hire a third party professional for an analysis of the neighborhood. Other than this I don't understand what you mean by due diligence.

How do you practice due diligence by getting comps and comparable rents in the area by a third party professional without someone trying to sell you something else?

Carl Fischer and Larry F.- The reason I am purchasing a rental is to generate more income during my late retirement years. I checked with my CPA and the only way you can withdraw earnings on a Roth IRA is to meet the requirements of being over 59 1/2 years old and only 5 years later from the first deposit in the account. It is not calendar years but January 1st of the 5th anniversary initial deposit. So I don't have to wait until August after all. However, I decided I am going to take it slower. After all, it is so easy to get taken on your first investment. I have contacted a lender and I am dissatisfied with the interest rate quoted but I don't know if that is the going rate. I have 5 more lenders to call tomorrow to see if it is par.

Thanks,

Chuck Bernard

I thought that I was going to have to wait until August but I spoke with my CPA and I am able to start bidding as soon as I get the preapproval to see if I can qualify. I read some of the material that Melissa sent me. The company was formed in 2003 and has been an active turnkey provider since then. All properties are completely renovated and you get a chance to order a outside inspector to thoroughly inspect the house after renovations besides the lender's appraisal after renovations. The property will be managed by a local outside property management that they hire or a property management company of your choice if wanted. Also, if you are dissatisfied with the PM, they will help you move to another. The property is rented out with a two year lease at the rent they advertise or around it at your discretion. Some are even rented higher. The tenants of course are thoroughly screened and have a $50 late fee if late divided between Norada and you The roof and plumbing are guaranteed for 7 years. From the lender's appraisal and the inspection, the owner will repair all that is necessary especially if it is a major repair. or lower the price as you see fit. If not or you are dissatisfied with the findings of these reports, you can back out of the deal or negotiate the price again if you want.  When I get my first bid accepted, I will start a thread following the purchase. I plan on purchasing five turnkey properties eventually even though I am 68 years old and this is my first so I am learning as much as possible. If anyone has any comments they are appreciated.