All Forum Posts by: Charles Lemelle

@Charles Lemelle To be honest, other than using it to showcase our properties, I don't really try to pick up other business. However; I have had offers from investors wanting to partner, and others wanting us to build for them. So far the right project for partners hasn't come up, and for now, we are only building our own projects. I have had a great deal of traffic to the website from BP, especially when I post consistently. It's a great site for building your network, no matter what niche you're in. I just wish @Joshua Dorkin ( the internet for that matter) would have been around when we first started ... but he'd be an old man now, so it's best for him he wasn't!

Those are awesome modern properties you have listed on there. Very impressive !

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Originally posted by @Karen Margrave:

@Charles Lemelle As @Ned Carey indicated, the website you are referring to is NOT a "spin off" of BP, anymore than the websites of any of the other thousands of members of BP would be. One of the people that is a partner in the business that owns that website is a moderator and that's as far as the connection goes. We moderators volunteer our time to moderate on the site and share our experience. You will note I too have a website, and it has no connection to BP, only to my business. Should you become a paid member of BP, you too can have your website in your signature and become part of the conspiracy! (just yanking your chain back)

I'll have to check out your website. Have you seen a good business flow from it ?

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Originally posted by @Ned Carey:

@Charles Lemelle "Spun off" as you have used it implies the site has ties to BP.

This site is the creation of @Jay Hinrichs and @Brie Schmidt. Other than the fact they are both regular posters here, there is no connection with BP.

First, you knew exactly the website that I was referring to. I gave you the link just to play along. Second, I used the phrase spun off. What it "implies" is for me to know and/or communicate. It is also for you to interpret anyway you wish. As far as "no other connection", the site is referenced throughout BP.

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Originally posted by @Kaitlyn Masai:

@Matt R. Thanks! That's interesting that the top 3 cities for total returns are in CA. This conversation makes me realize that there's some upsides to CA investing that I haven't considered.

@Charles Lemelle Thanks for your thoughts on this too. I had considered turnkey as well but I think I like the idea of rehabbing a place myself.

@Dan H. I'm glad to hear you have had such great success in the So Cal area. It makes me hopeful that I might be able to do well here too.

@Ron B. Good to meet you! Let me know how your first deal goes. I would love to know whether you end up going with out-of-state or local. I'm also leaning more to the A/B locations.

Oh yeah. If you can find the right deal, Fix and Flip. Take that big chunk of cash, walk away, and find your next deal. Much success to you !

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Originally posted by @Ned Carey:

I am a moderator and totally unaware of a turnkey review site spun off from this site. I am curious to what you are referring to.

http://turnkey-reviews.com/

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Originally posted by @Karen Margrave:

@Charles Lemelle My name is Karen Margrave, not Moderator. As such, I have my opinions as you have yours. Biggerpockets is a site where people from all walks of life, from every professional background, real estate niche or specialty can come together and express their opinions, ask for help from others, and learn. As moderators we aren't here to push forward any agenda for BP, but to contribute from our base of knowledge and experience, and offer help where it's needed. Much the same as every other member! Thank you for taking the time to share your thoughts. Have a great day!

I'm just yanking your chain Karen. I really liked your input on the So Cal market. Thanks and keep up the great posts !!

Chuck

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Originally posted by @Karen Margrave:

@Charles Lemelle California is a huge state, with many different regions. I moved to southern California when the market crashed, from an area that was hard hit, because we knew southern California is ALWAYS the first place in the country to rebound. Why? Because of all the reasons I listed in my first post. Whereas, areas where there is no economic base, high unemployment, tough winters, etc. plug along and take years to recover.

Southern California is expensive, but rents are high too. At the same time, there is a broad based economy, large pool of qualified buyers, tenants, etc. Because of the demand, homes appreciate in most areas very nicely, and usually will outpace the cash flow you might realize in the more depressed areas. Here, should someone be looking for cash flow, there's the potential for that too with vacation rental properties.

However; the poster was asking about investing in turn key properties out of state. It might work in some instances. I personally just think for new investors to trust someone they don't really know, with what often is their lifes savings, is risky and they'd be better off trying to find an investment closer to home. It's great it worked out for you, but that's not always the case.

You do realize that this website that you are a Moderator of has spun off a Turnkey Review website, right ?

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Originally posted by @Karen Margrave:

The question you need to ask is Why? Why are properties in other states going for so much less? Supply and demand drives the price of housing. In areas such as southern California where we have perfect year round weather, all of the Forbes list companies have offices, high tech, low tech, manufacturing, medical centers, universities galore, amusements, sports venues, zoos, beaches, etc. there is ALWAYS going to be a high demand, thus higher prices. The closer to the beach you get the higher the prices will go.

However; the workforce is well paid, and it's a broad based economy. We have very low unemployment compared to other areas. ALL of those things factor into what drives values, and appreciation.

Sure you can go to another state with a high unemployment rate, terrible weather for much of the year, and little hope for economic growth, and buy a cheap house that might cashflow. Unfortunately in areas like that with no economy, once rents reach the peak for what the rental market can bear, then what? If by some chance the area does have some type of economy, and demand begins to rise for rental units, then a developer comes in, buys some cheap land, puts in some new units and there goes your cash flow! Of course developers building units spurs construction spending for a time, which feeds into every other type business in a town and things can be great, but eventually, it ends.

When you're looking at real estate you want to look at the big picture. What is causing the depressed prices? What is the local economy? Do people have a lot of spendable income? Is the economy based on one sector or broad based? Is it seasonal? Are people moving to or away from the area? What is the drawing point for the area?

I always advise people to stick close to home where you KNOW your local market. You know the trends, neighborhoods, etc., because doing anything else; and you are relying on someone else's knowledge of their area or worse yet, someone that has no connection to the area at all except selling you property there, and why trust them more than yourself?

Hi Moderator,

I think you have to guard against your living in So. Cal, so you think its the norm. It's not. Believe me. There's a big Country out there. What you are referring to is economies of scale. I was born and raised in So Cal, and moved to rural North East. So I believe I can speak to both directly. I believe a lot of the draw for many investors is money--their money, how much they have, and how much they are able and willing to risk. I buy a Indianapolis Turnkey property at 100k, it costs me 20k for a downpayment. That same home in So Cal we can pretend would be 500k, that's 100k downpayment. Not only won't most investors have that much, some may not be willing to risk it. That same 100k downpayment would buy the Indy house free and clear. You would still have a mortgage payment of over 2000 dollars for the So Cal one. Rent money in Indy might be 1100 a month with no mortgage. The So Cal high rent would be eaten by the mortgage payment.

Further, I could borrow about 80k on the Indy house to leverage for more investments. The So Cal one wouldn't even be eligible for a loan.

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Originally posted by @Matt R.:

Originally posted by @Charles Lemelle:

"Matt's point on why locals don't buy these if they were so great is absolutely accurate.".............................But you never answered why Cali the Great Investor Frontier doesn't offer Turnkey properties............hmmmmmmm..................

Great Cali value of 800k homes that have 2500 dollar rents ???? So never mind 2% rules, or 1% rules. We want to do 0.25% rules ? No thanks.

There are actually turnkey companies that invest in LA. They don'the need to advertise or call themselves turnkeys, they call them investments. They typically can hit the 1% still. I am not trying to convince you...just sharing what I know.

I don't think its against the rules to name them on here. If not, you could PM me the names. I'd like to check them out. Thanks, Matt

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Great Cali value of 800k homes that have 2500 dollar rents ???? So never mind 2% rules, or 1% rules. We want to do 0.25% rules ? No thanks.

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All Forum Posts by: Charles Lemelle

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