All Forum Posts by: Jack Gibson

So much to be said for this one... NEW furnace and water heater, NEW carpet and lots of touch ups in the interior and exterior. We solidified the structure and added more insulation to make this solid for investors and property management for years to come! Cashflowing out of the gate at 11.83% ROI. This one will NOT stick around through the New Year!

Don't be confused by all the marketing B.S.- THIS is a TRUE TURNKEY! Fully rehabbed, fully leased, professionally managed and insured. Inspected by a reputable 3rd party and in compliance with all government bodies with a full record of all work done to the property. Completely DONE and completely TRANSPARENT- just like it should be!

View this and other great properties at HighReturnRealEstate.com- Prim, Proper SFH At $45k!

This little beauty needed a lot of love. New roof and siding, all new utilities and electrical, plumbing updates, new kitchen, updated bathrooms... the list goes on! Not a square foot was left untouched! She cleaned up real nice and after a few new tenants, she's cashflowing at 14.35%, including professional management and insurance!

Don't be confused by all the marketing B.S.- THIS is a TRUE TURNKEY! Fully rehabbed, fully leased, professionally managed and insured. Inspected by a reputable 3rd party and in compliance with all government bodies with a full record of all work done to the property. Completely DONE and completely TRANSPARENT- just like it should be!

View this and other great properties at HighReturnRealEstate.com- Rock Solid Duplex, Performing At 14%+!

@Bill Briggs    Gary is an American Airlines pilot who flies frequently to China and is not a user of BP.  He may never see your question of his testimonial (fair & legitimate question by the way!)   He purchased multiple properties over the past 3 years, and if he is willing to disclose what properties he purchased I'll him handle that.  However, you can actually see his video testimonial where he also discusses his returns and more about his experience with us.   

Julie's comment that I told her I bought it for $60k does not add up - I did provide a $17k scope of work (not $13k, I was going off memory) so $60k plus $17k = $77k, sold it for $72k once it was completed - we aren't in the business of selling for a loss, so not sure what is going on here.   This is completely out of line that someone is deliberately trying to tarnish our sterling reputation.   The project ended up costing us $24k, so from a standpoint of extra items that we did for the customer, and our mistake in under-charging, we actually lost money on this deal.  This was (and still is) a great property.  Here are the before and after pics showing how far we took this project, which was actually deliberately purchased just for Julie's parameters: https://hrre.egnyte.com/fl/7aDVvi0DWy

To be transparent, this was a property that the customer understood UP FRONT that the rehab was not complete, and that we would be completing it for her. She also knew that we did not have our own in-house PM. (NOTE: We no longer sell unfinished properties, and have our own in-house PM now). 

Julie is a sharp gal she was very much aware that she got a nice property in a strong area for a great price. The property appraised for more then we sold it for.  This was probably the reason why she would not let us buy it back.

We signed the PA before we acquired the property, and did not sell the property until it was completed. Even though we had no earnest money on the contract, we honored it despite the deal being a slight loss for us. We honor our word and our contracts. 

The plumbing issue that Julie is referring to happened during the deep freeze of 20 below temps for weeks in Indy, and pipes were bursting all over town. This was well after she closed on the property.  Without our own PM in place, we would have no way of knowing if this was due to workmanship or weather, but we have our suspicions...especially when the property had been inspected and signed off on. 

I cannot see how a company is not operating in good faith and doing their best to make it right for the client when they offer to buy back the property, for ALL costs incurred (except an insurance claim) including closing costs. We had no legal obligation to do anything. We simply have a strong desire to take care of our clients.  

Of course there are two sides to every story, and a HUGE part of the story was left out.   1st - we provided a full scope of work on the property, and did not ask Julie to fund the property until the property was completed and inspected.  We signed a purchase agreement on an agreed price based on a $13,000 scope of work.  We ended up putting an entirely new roof on the property that was not in the scope of work, and did not raise the purchase price.  In addition we incurred all the carrying costs to bring the property to completion.    The property was completed, and then inspected by one of the toughest inspectors in Indy.   Of course he came back with a list of repairs as that is his job, some of which were valid and some were not appropriate for B/C class rental property standards and the price paid for the property.  Nevertheless, we took care of the repairs on the report - yes it took 2-3 trips to get everything done.    Our Warranty is based on utilizing our PM's, as we have a strong relationship where we don't get gouged on construction repairs and it's a seamless billing cycle.     The buyer declined to use our primary PM, and we recommended a secondary that she then also did not like.    When it became evident that we were altogether not a good fit, 3 times we offered to buy the property back including any repair costs she had incurred (with the exception of a 16 year old crashing her car into her porch which is an insurance claim) AND closing costs.  Yes - that's right, 3 times.    The buyer insisted that I pay $13,000 above the price we sold it to her at, at which point we shut down all communication as we always strive to do what's fair, but also needs to be reasonable. 

There are numerous challenges that come up in bringing a property to market.   We have and will always strive to do the right thing for our clients.   In an effort to become the best in our industry and continually improve processes, we will now only sell properties that are completely done, inspected by a 3rd party independent inspection company, then repaired again and signed off by a contractor with a list of what was addressed.  Then and only then will we sell a property.   In addition, as Shecky mentioned we have taken the PM in house, and will 1 year Warranty a property provided our PM is utilized to control costs.        

We've found good luck with going with vinly plank flooring, we originally were all in on carpet because it is so much cheaper and we could pass those savings on to our Investors. recently we have made the switch after a few scenarios not nearly as bad as you described, but shouldn't have to replace carpet after 2 years even. I had the same carpet in my bachelor pad for 8 years and we were really hard on it. : ) It holds up 5x better then carpet, and doesn't bubble up and rip easily like laminate. Cost wise it's probably double carpet, but over the long haul, the CapEx savings is worth it. We want to do what's best for our investors long term, so it increases their acquisition price but relieves stroking a check every couple years for new carpet. If you would like a couple sources we use PM me.

Gorgeous, B-Class SFH, Extra Half-Bath, Freshly Rehabbed, and Brand New One-Year Lease. Great Stability, and CASH FLOW From Day One. Add This To Your Portfolio Today!

Visit our website to have a look at this exciting opportunity-
https://highreturnrealestate.com/…/CFO-4829-Kenyon-1024x791…

I would like to offer a different perspective then most of the opinions in this thread. I am a turnkey provider who ONLY deals with cash buyers. I cannot see how this is a "red flag". I offer a quality product that's done right, at a good price and ROI, and we aren't marking the property up $20,000 over market value. Sometimes, we don't make any money on a deal if our costs are too high on the project and we want to make sure to keep our ROI's consistent. There are 2 reasons we only deal with cash 1) we don't have a multiple millions in inventory, so therefore inventory is tight and we cannot afford to tie up a property for 2-3 months waiting for the bank financing to come through, when we have other investors who are ready and willing to close quickly with cash. 2) I don't like dealing with banks. I have done it before, and it decreases my happiness threshold considerably with all the hoops I have to jump through and the constant delays. and, I guess I have a third 3) we work hard to set investors up with a property that will get a good appraisal on the back end. My first batch of personal cash purchases appraised for more then I bought them for, giving me all my cash back out on the back end.

I also would 100% LOVE to serve up a property that's been fully rehabbed, and has a tenant placed.  They are relatively stress free (investors aren't asking when their property will be done and why a tenant wasn't vetted and placed yesterday, on a daily basis haha).    The timing of our projects doesn't always match up with when an investor is ready to buy.   We may not have anything that is done with tenants.   We have 26 properties under contract this month, so most of our investory is sold.   A chunk of those, the investor felt very comfortable with our team, and took on the rehab projects for a discounted price.   Remember, there is a carrying cost to capital, so a finished turnkey property with a tenant in place is not always the best deal.   If you want the best deal, sometimes taking on a rehab project will get you more equity.  Just offering up a different perspective.   I just wouldn't automatically assume that an all cash turnkey provider or a pre-rehab project needs to be avoided like the plague.   

I would not recommend anything about 2 units in Indianapolis. I have owned several quads as have my clients, some are really good and others have been challenging. The tenant class in these is very low, unless you pay quite a bit more and do a higher end rehab (which drops your ROI down to probably where you won't be interested). Indy is GREAT for strong cash on cash returns on singles and duplexes. Singles hitting 11-15% net cash on cash without leverage is certainly very strong, about the same with duplexes when you account for the higher vacancy factor as they are more transient. Good luck!

This solid SFH is very close to interstate access, public elementary schools, a private elementary school, golf course, and the Children's Museum.

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