All Forum Posts by: Clayton Mobley

Hey @Manisha Munikar, welcome to BP! Your post is a little old now, but I thought it worth a comment nonetheless.

 From your post it sounds like you are looking to partially manage your own investment...? Have you considered using turnkey? I see a few other outfits have mentioned that option, but it wasn't clear to me if that option was something you were looking at. Full disclosure, I am the CEO of Spartan Invest, a full service turnkey outfit in Bimingham. Since you are looking for both an agent and a PM, going the turnkey route may be a good move  as it removes the necessity of you of finding each member of your own team. 

As @Chad Maness and @Alan H. have pointed out, there are a number of solid providers in this town, so you'll have no shortage of suitors ;) Since your current agent is leaving you high and dry, my advice would be to take the opportunity to pick the collective BP hive mind and figure out exactly what type of investment suits you best.

Do you want to choose and manage your own portfolio of homes or just cut a check and generate passive income? Do you want to be involved in the refurb? What types of homes are you interested in? Single or multi family? What type of neighborhood? Are you looking for max cash flow or ROI and are you willing to invest in lower quality properties in C and D areas to get it or do you want that sweet spot combo of capital preservation and reliable cash flow in a solid B property? Not knowing how far you are in your research, you may have already answered many of these questions, but I would advise you to be very certain of what type of investment you want and take the time to build a relationship with a provider before jumping into anything.

Of course, By now you may have a tidy little portfolio going, who knows! If you're still looking at you options and have any questions about turnkey, Spartan, or theBirmingham market just give me a shout! 

All the best,

Clayton

Welcome @Corey McCormack! We're down in AL as well, in Birmingham. Not knowing what you are looking for specifically or what kind  of investing appeals to you, I'd just say to go hog wild on the forums and podcasts, learn as much as you can and don't be afraid to ask questions! There are sooo many knowledgeable investors and providers here that are always generous with their time and and experience, so just holler if there's anything you need!

@Mabel L. at the risk of being called a vulture, I'd still like to welcome you to BP ;) The reasons you outlined for being interested in turnkey are spot on and, while there are definitely ways to make money closer to home or through other avenues, if you find a provider you really trust, turnkey can be one of the easiest ways to generate passive income.

Full disclosure, I am the CEO of Spartan Invest, a full service turnkey outfit in Birmingham, AL, but being on the other side of the contract doesn't mean we providers don't have plenty of useful information to share! As has been pointed out before, such a well thought-out and turnkey-positive post is going to attract a lot of attention, both good and bad. But as you said yourself, it is possible for both parties to win. So take that influx as an opportunity to be introduced to the best (and yes, also probably the worst) that BP has to offer in terms of TK providers. There are a ton of sketchy  'providers' out there, but if you know what you're looking at they are pretty easy to pick out.

 Always watch out for people that throw around a lot of pro-forma estimates and can't back up the figures they use with actual data. Any provider worth their salt should KNOW what their vacancy and maintenance rates are and be upfront about other costs like leasing and management fees. They should also be able to tell you what their typical and minimum lease terms are and what the average move-out cost is so you know how often you're likely to incur additional expenses because of turnover. Ask about deferred maintenance and what kind of upgrades the provider does during refurb - are the upgrades done going to last or did they do the bare minimum to make the property rentable? Do they defer maintenance? Does the sale price seem grossly over-inflated even with refurb costs? Can the company show exactly why that price makes sense? Industry standards have everyone showing super simplified numbers on their property jackets, which can make things look a lot rosier than they are. If a company you speak to drags their feet about showing you actual concrete numbers on a real property in their portfolio, I'd move on.

All that being said, you clearly know what you're about if you're going to be financially independent at such a young age. Take advantage of BP and all it has to offer, do your own due diligence and make sure you go through any numbers that are provided to you to make sure that they actually add up. If you have any questions, there is always someone willing to chat, or you can drop me a line any time.

Best of luck on your new adventure!

Clay

@MICHAEL WILLIAMS Welcome to BP! Since you're new, there is an unlimited amount of information for you to dig through here, so don't be overwhelmed. Try to narrow down the type of investment that suits your needs best, since there a several ways to invest in real estate.  Do your research and figure out what your goals are, what you can invest upfront, and what level of interaction you are looking to have with your investment. 

Do you want to invest short-term (flipping) or do you want a long-term source of investment income? Flipping can be lucrative but it isn't for everyone. If you want a buy-and-hold investment, there are even more options! If you like the idea of finding your own properties, refurbing them yourself and managing tenants etc, then building your own portfolio of self-managed rental homes may be great for you and can generate great returns if done right with quality properties and good tenants. If you want something that generates passive income with little effort beyond cutting a check, much like a dividend stock but with less volatility, then consider using a turnkey outfit.

Full disclosure, I am the CEO of Spartan Invest. While I won't try to sell you, I can honestly say that turnkey can be a great entry point for beginners because all you need to do is find a market that you feel good about and a provider that you trust. That is actually even more important than the market. There are good rentals all over, not just in the hotspots like Memphis and PA. Take a look at what is available in your area, but also consider out-of-state options if your market is overpriced (which most of CA is). if you like the idea of turnkey, focus on finding a provider that you mesh with. You should have a good rapport and trust them to show you ALL the numbers on a property and exactly how the ROI is calculated. You should know where every single dollar of your investment goes.

There is a ton to learn at BP and an absolute treasure trove of knowledgeable investors, providers and real estate professionals, so it can see a little daunting at first. But once you narrow down which type of investment works with your needs and finances, the amount of information you need to absorb is greatly diminished. Don't get overwhelmed! The BP community is here to help you out wherever we can.

If you have any questions, don't hesitate to give me a shout!

All the best in your new advenure,

Clay

@Ron B This is a very important point. Industry standard is to omit some really important expenses in the property jacket cover sheet which can make returns look more favorable than they are. You really have to learn what the numbers mean and how exactly they fit together to generate returns. That's why we offer our potential clients interactive spreadsheets that show exactly how cash flow and ROI are calculated for both cash and financed investments. It allows them to see how different factors influence the bottom line and serves as a great educational tool no matter where they invest.

Long story short: never take numbers at face value and always check to see if things like vacancy and maintenance costs used in the ROI calc are really tracked and updated regularly or if they are estimates.

@Jay Baxter please accept my apologies for the delay in replying! We've been a mad house here, which is never something to complain about but it does mean BP notifications can get lost in the work vortex ;) 

I'm glad you found the link you mentioned, and of course I am more than happy to answer any questions you might have. Definitely send any Birmingham newbies interested in turnkey my way and I'll do my best to provide them with useful info! There is so much to learn here at BP, but definitely give me a shout if you need anything!

Hi @Kevin Darrell, yes we back up everything we do with a 100% guarantee to ensure that our clients know we are accountable to them during every step of the process. Many investors feel, like @Baha M., feel wary of the all-under-one-roof approach, so we try to make it as easy as possible for clients to see exactly what we are doing with their money and provide the returns that make their investment in us and our product worthwhile.

Hey @Kyle Skelton, feel free to let me know if you have any questions now or in the future! Roll Tide!

Hey @Kyle Skelton welcome to BP! You're definitely getting started in the right place, just remember to take breaks for eating and sleeping, this place can be a serious rabbit hole ;)

Not sure what types of investing you're looking at, but I'd encourage you to do some research on turnkey. Full disclosure, I am the CEO of Spartan Invest in Birmingham, AL. That being said, no matter if you invest here or out-of-state, turnkey can be a great model for beginners because it takes a lot of the work out of investing. As long as you find a provider you really trust that can show you real-world numbers and not just flashy ROI estimates, turnkey can be a really amazing way to generate passive income. There are tons of very knowledgable turnkey providers from all over the country on this site, so anything you need to know you can definitely find here.

If you have any questions about the turnkey model or anything at all, feel free to drop me a line!

Best of luck on your new adventure!

Clayton

@Alex Craig Hahaha, sorry to have disappointed you! Yes, Birmingham really has some truly lovely areas, but like a lot of places it can just seem like another big city at first glance. If you're just in and out for a game or a layover, you're really missing out! Whenever we have potential clients out to see properties, we always make a point of getting the whole office out for lunch and then taking them on a tour of the city so they can see why people want to live here. 

And yes, the area around Legion Field is not amazing, though it's not too surprising given that most people that can afford to live elsewhere would not elect to live next to a stadium of any kind. That is the way with real estate of all kinds I suppose, what was an area with an exciting new stadium is now pretty rough - all the more reason to invest for cash flow and not appreciation eh? ;)