All Forum Posts by: Jason Wade

Interesting Jason Wade ! So after how many units would you consider that arrangement? Cause if u have 8 units losing two isn't feasible. Is there a specific number of units the property has to have before you allocate a unit for the PM and then another for the handy man

Hey Sam Shueh , I found very interesting what you said of getting a PM and Handy Man to live on property and not charge them anything. Would you need to pay them anything on top of the "free rent"? Or that is all their compensation?

Also, after how many units in a property do you apply this?

Thanks!

 DC was worst than Baltimore in the late 90's early 2000's look at it now. When I was renting an apt with my brother 2003 it was next to a drug house (they were decent people expect the drug part). That house was sold for 120k today its worth 600k. All i am saying is give Baltimore time like everyone that gave DC time. If you remember the area by Howard Theater back then, look at it now. 

"Can't we all just get along?"

Rodney King, Los Angeles 1992

There's so much opportunity in LA as well as in within 50 miles of LA.  There's tons of emerging markets even within LA county...like parts of Long Beach, South LA, Gentrification/ Value add plays.  If you want dilapidated housing like Baltimore you can go into San Bernardino it's 50 miles away and has sunshine and commuters to LAs HUGE economy and jobs.

Anyways that all being said I've invested out of state and I'm thinking about expanding.

I think If you want to make some big money get into LA.  If you live here try house hacking in a gentrifying emerging neighborhood... you mike make several hundred thousand, get your mortgage paid by tenants.  

  I just don't see much sustainability long term in some of the inland states.  Will I invest there, sure, they seem to cash flow.  

But when your owner occupying out of state and the tenant decides to slip and fall sue your *** what do you do?  What do you do when you find out that the property manager has been embezzling rent off the top of your house?  How about if you have to replace an $8k roof? 

I'm still going to invest more out of state just to diversify, but man I'd rather invest in urban infill / value ad within LA county ---Socal is  20 million pop -- sprawling cities 

What's 50 miles outside of Baltimore?

What happens when a major job provider outsources tons of jobs?  In LA it happened in Torrance (150k LA county) recently when Toyota left for texas... what happened to the local Torrance housing market?  It didn't dent it...at least I never heard anything about it LA is a big economy and will absorb minor economic hiccups.

It's like investing in stocks.  Do you go with US Large caps or invest in emerging market-- hmm India, Nigeria?  I duno for me I think I'll put most of my money in the US, maybe diversify 20% in some emerging developing countries.

No offense to any of the fine people of Baltimore lol.  

But within LA  county there are cities like Long Beach that are bigger better stronger economies would engulf you.  Long Beach is half a million population and has an economy independent of LA but is also part of LA county...

Watch the economy tanks and I will eat my words. 

Yes it is some crazy bizzaro world to compare these two cities as comparable in any average real investor way. One has thousands of abandon properties and many were recently abandon, almost like a bomb went off and the other is a thriving top to bottom healthy market flush with investors from the entire planet. Do folks really think those buy and hold investors in the pics above did well? Those are total losses as the entire street is abandon. This does not exist in LA and or so rare you would have to spend many hours to find one or two in that abandon stage and it would not remain abandon for very long on average. 

@Jason Wade I would like to do a BRRRR in the future so Baltimore will definitely be an option since I'm not too far away. I'll have to develop a network of contacts in the area that I can trust. I'll also need a HML or a partner to JV and learn the ropes from buy to refinance.

Hey @Jason Wade feel free to shoot me a PM any time! I'm more than happy to answer any questions you might have. If you already have one property under your belt, the scariest step is already taken ;) You're in the best possible place to learn from people of all experience levels and specialties, so take advantage of it! 

As has been pointed out in this thread already, 'turnkey' has become sort of a catch-all term, and not every business that has 'turnkey' in the name offers the same product or service. True turnkey can absolutely be an amazing investment, especially if you don't have the time or inclination to be super involved in the day-to-day of your investment management, but there are definitely plenty of people out there looking to make a quick buck - just like any other industry. You wouldn't hire just some random guy to fix your car because his nickname was The Mechanic - a name is just that, a name. You have to vet any TK provider (or contractor, or agent, or PM) very thoroughly to ensure you don't get taken for a ride, sadly. I've posted several times about how to go about the vetting process and what kinds of specific questions investors should expect answers to right off the bat. You can absolutely be successful going the TK route, but you have to be ruthless in your initial research. 

Anyway, here's a link to a post I wrote on that topic that includes a list of vetting questions, if that's helpful to you: https://www.biggerpockets.com/forums/55/topics/361999-new-investor-from-glendale-ca

Again, feel free to reach out any time with questions!

Best of luck on Prop No. 2!

Clayton

@Jason Wade Apologies for the delay, BP has been on the back burner for a week or so. To answer your question, we do everything in-house, which means my actual team at Spartan is in charge of vetting properties, purchasing, executing rehab, speaking with investors, and managing properties long-term. So I guess you could say I (and my other co-founders) vetted them pretty seriously when we hired them ;) 

I think that the in-house model provides more incentives for a business to make good client-focused decisions from day one, whereas an assembled team of an independent agent, contractor, marketer, and PM (for example) can be a little trickier. Personal ethics aside, an agent's job is to sell a property, and that's it. Same goes for every other piece of an assembled team - they have one job to do that earns them income, what happens before or after isn't so much their concern. Since we are also the rehab crew and the PM, it behooves us to purchase only the best properties, with the best 'bones'. It also works in our favor (and our clients' of course) to do high quality, thorough rehabs because it results in high quality props that require less maintenance in both the short and long-term. It also means we attract better tenants, who stay longer, because we're looking for properties with appeal from the get go.

Anyway, long answer to a short question ;) Hope that helps!