All Forum Posts by: Dexter Wallace

So I've come to a point where I'm not ready to start looking at buying property. Now while I have the funds to get started, A friend of mine is also looking into purchasing and suggested a partnership. We both agree to signing an agreement to make things less complicated. He's had previous experience renting before. I think it may be good to split the risk. What are your thoughts are Investing Partnerships with Family or Friends?

Thanks in advance!

1 Vote

Originally posted by @Matt R.:

@Dexter Wallace A lot of good info is on bp for this topic. For part timers there will be little difference in time and resources involved vs just buying rent ready stuff and handing over to a PM I think was part of your initial question.

Keep in mind just like all real estate investments TK cash flow speculation can be a risky bet. With TK you are partly getting numbers presented that have little or zero history. Non TK you would find those numbers out personally and you still can with rentfaxpro etc. For example TK vacancy rates will be presented with the same vacancy rate in city A and B and C. Actually vacancy rates will vary greatly just per zip code and are known to the 100th of percent. My only 2015 purchase is in an area with a vacancy rate of 2.69%. The zip code next door is 4.26%. I remember checking on a TK and the actual vacancy rate was 16%+ yet I think the flat standard TK 8% was presented. This was to be already vetted by the TK promoter blah blah...yeah right. You will have to verify everything just like any other RE investment.

So as your question implies you won't find many of the most experienced and savvy investors buying retail TK provider homes. It is one possible strategy that serves mostly first timers and or part timers as you mentioned. Good luck with your search!

Thank you Matt, pertaining to my question, If I chose purchase TK properties, I don't plan to be completely hands off, I just looked at the aspect of being able to get into my first property with a bit more assistance than just looking at a property and making more mistakes due to inexperience. I've read all your comments on here and it is very much a matter of preference and what works. This industry has many options of how to best obtain property, whether it is through doing the legwork or having someone do the searches for you. Either way the goal is to understand all options and strategies.

1 Vote

Originally posted by @Faisal Sami:

@Dexter Wallace,,, one other suggestion: spend time on the ground with actual real estate investors who own and manage their own properties to get a sense of what the business is really like. Too few beginning investors actually do this. I've spent thousands on books,tapes,webcasts and podcasts and still do to improve my knowledge and understanding. But NOTHING will substitute for on the ground experience. I know real estate investors that don't know the first thing about how to run a podcast or that ever bought a real estate course, but they are financially free and totally independent because of their actual on the ground experience in doing the business.

I absolutely plan to get some shadowing done. Fortunately, my sister and brother-in-law have been investing for over 20 years, I think getting a broad view of the industry can give me a chance to see where I belong or how to use this industry to my advantage.

0 Votes

Originally posted by @Mike D'Arrigo:

@Dexter Wallace As you can see, there isn't any one answer. It really depends on the individuals time, resources and expertise and whether they are local or not. Personally, I think turn key can be a good way for the busy, "arm chair" investor to participate in out of state markets that provide strong returns, but it all comes down to working with the right turn key company. There are some very good ones, (many on here) and some not so good ones. I host a real estate investment show and have talked about this on many episodes. You can find podcasts of the shows on my website if you're interested.

This topic has definitely opened my eyes to may different views and opinions, I do know that ultimately it is based on the individual, I definitely will listen to your podcast. I think the information can be valuable.

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Thank you guys for the advice. I know people will have differences of opinions. I would love to be able to do active investing but the amount of resources right away it seems like this could be a good strategy to start out until you gain more experience

1 Vote

Hey BP!

So In my continued research into real estate investing, I came across Turnkey Investing. They offer a lot of positives for the investor who is just starting out or is looking into part-time investing. I know active investing can be very time consuming but the "all in" costs are bit lower. My question is Turnkey Investing a positive strategy for part-time investors who may not have the full resources to start out?

3 Votes

Hey BP World,

So I'm researching to buy my first investment property. I have enough for a down payment, but I rather finance my properties. My question is, as a beginning investor, is at beneficial to go with a conventional loan through a bank (Not knowing how much a I will qualify for, but have excellent credit) or go through a hard money lender (and go with the BRRRR method)?

0 Votes

Thank you guys for all the feedback, theres so many avenues you can take when getting started. I appreciate the advice and hope to connect with you all through out this process. Good Luck to all of you guys.

0 Votes

Hey BP World,

I've recently started my journey down the road of Real Estate Investing, currently educating myself on the basics and the local market. My Question is how long did it take before you felt comfortable to purchase your 1st property? My goal is to close my 1st deal in the first half of 2016.

Thanks in advance for your feedback

0 Votes

Thank you Ned and Matthew I am still new to the industry. Part of my education is identifying the correct term for certain properties. I am interested in multifamily investing as the concepts are similar. I've signed up for the we binary already. I was just looking for additional information for research.

0 Votes

All Forum Posts by: Dexter Wallace

Dexter Wallace has started 6 posts and replied 13 times.

Post: Partnering Up

Post: Turnkey Real Estate Investing

Post: Turnkey Real Estate Investing

Post: Turnkey Real Estate Investing

Post: Turnkey Real Estate Investing

Post: Turnkey Real Estate Investing

Post: Financing 1st Property

Post: When to purchase 1st Property

Post: When to purchase 1st Property

Post: Duplex Investing