All Forum Posts by: Larry Fried

 Very good, Tyler.  Ping me when your in town and we can set up a time to meet.

I started my OOS investing with turnkey, and have helped a number of other investors do the same.  You do have to be of the mindset that you are likely going to be buying at retail, and we are in the late stage of an upward trend.  Also be very careful of who you choose to work with as others have said.  In my view that should include visiting the area and meeting with the teams who are considering before closing on any deal.

@Jon Schwartz Like Ian & Lane I have invested in both turnkey SFR and syndications, and currently favor the later for my relatively passive investments. I have also done private lending, and I wrote a BP blog article awhile back comparing all three Three Key Routes for Passive Real Estate Investing You might find it useful reading.

@Seth S. Financing is totally different on the two methods. Banks won't lend on a home that is not in livable condition, which is what you are going to get on a BRRRR. So you have to buy and rehab with cash or hard (or private) money. Using hard money is expensive and you have to factor that in to your calculations.

However, I notice that this is a purchase at $40k.  Not sure of what market, but wherever it is likely to be in a rough neighborhood.  Very difficult to manage, and you may be asking for a world of hurt if this is not local to you.

@Shannon Phoenix If you are looking at Chicago area, you might want to look at NW Indiana, where the taxes are lower, and the laws much more favorable to landlords.  But why not look closer to home.  Dayton is a really good market and still early enough in the turnaround cycle to do well. Or Cincinnati.

@Charles E Bernard Jr When considering your turnkey purchase you should include due diligence on the actual provider/seller.  Norada has relationships/affiliates in various markets.  Those affiliates are the actual sellers.  I think it most prudent to make a visit and face to face prior to any close to learn first hand about the market, the neighborhoods, the rehab quality and the people behind the sale.  

Yes, started investing with turnkey back in 2012, and I have also helped a number of other investors do the same. Given my circumstances at the time, it was a great way to get started in OOS REI.

Definitely do not take the turnkey companies facts, figures or projections at face value.  Check out everything.  I highly advise making a trip to the market and meeting the people you are considering working with face to face.  Also check out the neighborhoods, the quality of their rehabs, etc.  

Like Caleb, I also suggest you consider more passive investments for your 401k, keeping in mind that all costs incurred in owning property have to be paid from your 401k if you go that route.  Here's a BP blog article I wrote on Three Key Routes for Passive Real Estate Investing two of which are good for self directed retirement accounts.

I am not a CPA or a tax advisor, so take this is not advice. A big part of the advantage of a Roth IRA as I understand it, is that anything earnings on investments are not taxable. However if you withdraw the funds from the IRA essentially removing them from the IRA, your earnings on the purchase you make will be taxable. Best to have the IRA itself make the purchase or investment from a self-directed fund, and then take distributions as needed or required from the investment - tax free.

@Calvin Ozanick I am another investor who believes in mixing it up in REI. If you are trying to compare various methods of passive REI, I wrote an article on BP awhile back that takes a look at Three Key Routes for Passive Real Estate Investing