All Forum Posts by: Grant Diggles

Hey there @Chris A., I recommend checking in with @Doug Johnson if he's actively invested there. That's the best place to start. If you need more info, we have developers in the Birmingham area we can connect you with to further your due diligence effort. Just out of curiosity, why Birmingham?

Cheers.

Welcome @Chris A., I've spoken with a rash of California investors the last 48 hours for some reason... must be something in the water over there.

Welcome to the BiggerPockets world! You'll find a wealth of knowledge here with a lot of helpful investors, wholesalers, turnkey developers and everything in-between. @Tom Ott is correct in saying that the Midwest is your most logical choice to invest in. The midwest market is prime for this type of passive investing where inflation and home prices are still realistic. I live on the West Coast as well (Oregon) and its just too expensive to cashflow anything right now.

If you're looking to get started in real estate investing, turnkey investing is a great way to get started. Its passive, its a proven strategy and you have a lot of options. You can certainly look at traditional turnkey investing, but you may also want to check out the BRRRR investment strategy as well. If you don't understand the BRRRR strategy, feel free to PM and I can direct you to some helpful info that will give you a blueprint for taking your first steps. Another option to check out is flip funding if you want to take an even more passive approach to watch the whole process unfold with even less risk.

Too many options to throw out in a simple forum but shoot me a PM if you need any help with getting started.

Cheers, and happy investing!

Hey there IIona,

You have a good number of options available to you with a "buy and hold" strategy. There is traditional turnkey purchasing with many, many turnkey providers located on BiggerPockets who can help you. There is also BRRRR strategy investing which is my favorite due to its creative investment process... are you familiar with this strategy?

We can put you in contact with some rock solid turnkey developers in all of the areas you've mentioned as well as areas you may have not considered.

Please feel free to contact me at your convenience and I'd be happy to discuss some of these options with you to clear the air. I'd love to get a clearer idea of what you're thinking to better recommend developers who might meet your needs the best.

Cheers.

@Josh E., Clayton gave some sound advice to consider. If you're going with out-of-state investing, you're going to basically go one of three direction:

1. Traditional Turnkey Investing
2. BRRRR Strategy Investing
3. Flip Funding (if you want to avoid being a remote land lord altogether)

And you'll be investing directly with Turnkey Providers or indirectly with Turnkey Wholesalers (those who have relationships with many different Turnkey Providers). Doing your homework is important, but the process is pretty simple and straight forward if you ask the right questions.

If you want any help exploring all of your options, please feel free to PM me. It might save you some time... @Tom Ott has a good blog resource to check out to get started.

Cheers.

Welcome Jim! You're right on track with the "augment" your income statement. Properly building out a portfolio takes time and proper due diligence. Sounds like your expectations our appropriate for real estate investing. There are huge number of options in real estate investing but the main three we work with are:

1. Traditional Turnkey Real Estate Investing
2. The BRRRR Investment Strategy
3. Real Estate Flip Funding

Choosing which one (if any) is right for you will be determined by the amount of capital you're working with, your timelines, your goals and a few other factors. These three options have the lowest entry barriers, proven track records and the most options. As you'll find out, there are plenty of developers, vendors and builders represented on BiggerPockets who are willing to help you get started. Sounds like you've already tapped into some of it.

If there's anything I can do to help "quiet the noise" of real estate investing, please don't hesitate to connect. We're here to help.

Welcome to the community and Happy investing Jim.

@Edwin Williams , I would love to find out who your Turnkey contact is in Cleveland. We are always looking for great turnkey providers who do great work and are dependable.

This is an unfortunate situation on all sides. I'm sure Mr. Drew will do what is necessary to fix the problem and I hope Carlos will receive an appropriate solution to rectify this issue. I work with multiple turnkey providers across the country and personally fly out to each location to assess the developers and get proof of concept for this very reason. That's not to say that these issues don't arise, even with the best turnkey providers, and I find that its times like these when the best turnkey providers leverage these "opportunities" to prove their true quality. 

Good luck with this gentlemen. I hope this turns out to be a win-win for both of you. 

Absolutely. I believe this one of the best methods of creating a solid portfolio for passive income. I've worked with groups in OKC, Indianapolis and Philadelphia. Feel free to connect with me if you have any questions. Cheers.

Lots of good advise already here, so I'm going to echo a few points.

1. Don't put all of your investment money into one market for SF Turnkeys. Diversify into several markets that are unrelated to each other to reduce risk should one economy take a dive. So work with multiple turnkey providers. Most of the turnkey owners we work with who own multiple properties in the same market usually live there as well.
2. Don't tie up your money in SF Turnkeys. Try using the BRRRR Method to acquire properties, get your money back and use it somewhere else (investment fund, multi-family, etc.) Seems that most investors who get into turnkey use it as a stepping stone for larger investments that are more lucrative and less of a hassle.
3. Don't quit your day job. Consider that 60k a year as reinvestment income and not additional income. Reinvest that money as long as you can before needing to tap into it. I don't know that I would spend any of it paying down your properties. Reinvesting that into a real estate related fund that performs is a solid bet and should stay ahead of your SF maintenance costs (that you should be saving for anyway). You'll have way better luck in later years with the compounding interest.
4. Remember that for more "roofs" you have, the more CapEx you're going to need, so make sure you're diligent to save that each month to protect yourself when its time to "pay the piper". That seems like a no brainer, but its tempting to tap into your CapEx fund as you see it grow.
5. I would not go above 10 house on a personal portfolio initially (there are ways around the 10 house limit). That will give you time to see how its working and the 10 houses will help offset major lulls in cashflow from a vacancy standpoint when one or more are inevitably empty.

Anyway, that's it from me. Happy to assist if you need/want any further thoughts.

Happy Investing

You have several options Jim. Turnkey is a great solution for people looking to build passive income and, if done long enough, to create financial freedom. You can buy Turnkey Real Estate through a couple different options:

1. Buy directly from a Turnkey Operator/Company

2. Buy from a wholesale representative of many Turnkey Operators/Companies

Both options are viable and come with their own pros and cons. Turnkey Companies only have access to the properties they're trying to sell, so your inventory is going to be somewhat limited and only in those areas that the Turnkey Company does business. Wholesalers tend to work in multiple states allowing you to diversify and expand into unrelated markets (spread risk), offer more properties and give creative financial solutions that a single operator may not offer.

Outside of that, you also have strategies to acquire the properties. Your flexibility there depends on how much the investor wants to spend, time frames and goals. You can go with traditional turnkey purchasing (20% upfront), BRRRR method investing (my favorite), or a hybrid of each. There are some very creative ways to stretch 100k-200k to buy several quality properties in a responsible and expedited fashion

Finally, you'll want to consider what each Turnkey Company can offer you. Does the property come with a warranty? How long and what does it cover? Who is managing the property? Them or a third party? What is their process for finding tenants? Etc.

All in all, the business for buying Turnkey has become much better than in the past and has helped many people get into the real estate game, who otherwise may never have.

Hope this helps.