All Forum Posts by: Jacob Blackett

@Jay Hinrichs agree 100%. John and I have a call lined up and we'll continue the dialogue from there. I never give out investors names due to confidentiality. I only connect my current investors who are willing to act as a reference to serious prospects who fit our model. 

@Account Closed We're happy to provide references. Let's have a phone call first to discuss whether it even makes since to invest together. I'll PM you my cell phone number & we can go from there. Thank you!

@Jay Hinrichs I understand your criticism of the asset class, but if you are this opposed to this asset class then why have you funded a few thousand of these properties, advised clients to invest in hundreds of them,  & why have you owned about 350 of them? 

Investing in this asset class at $50k+ price points is not advisable. Purchasing these properties from out of state is not advisable. Using third party management & contractors who do not share a financial obligation is not advisable. You should only invest in these properties if you are an expert in the niche and have the systems in place to ensure the performance- as we do. 

We invest in these properties at rock bottom prices, and we allow those who invest with us to do the same through a partnership that puts everyone in the same boat. The properties we purchase are mostly in up and coming, urban neighborhoods that have been seeing a lot of revitalization and where there are big plans on the books that will dramatically change the landscape of the neighborhood. 

We HAVE sold these properties to owner occupants- it's simply untrue that this does not happen. Again, this all stems from buying the right properties, in the right areas. 

Everything that you said can be true, but it's simply not true in our model due to our operational structure and how strict we are with our acquisitions and management. 

@Jay Hinrichs All of your points are good and very insightful, thanks for your input. Please know I am available anytime to discuss the model more in depth, just shoot me a call on my cell phone.

Unlike a turnkey operator, we purchase all of our properties with the intention of holding these properties ourselves for at least 3 to 5 years. This means that we only purchase homes that (1) can attract quality tenants (2) have good value and have an opportunity to sell to owner occupants & (3) are located in areas with good if not great outlook. There are a lot of ways you can buy cheap homes, but we only buy a fraction of the available inventory in order to stick to our strict criteria. We put in hundreds of offers every month and only come away with 5 to 10 properties. 

Regarding profit upfront- when your passive income covers your living expenses, charging huge markups in order to pay large tax bills doesn't become a priority. We would rather keep as much ownership alongside our investors in our portfolio's than charge a large markup on the properties. We did that in the past through selling turnkey properties, but it just doesn't make since as an investor. Our current model is much more conducive to building true wealth, by increasing assets we own- not increasing the number of properties we've bought and sold. 

Also, we control every aspect of these investments. By eliminating as many third parties as possible we have been able to ensure the performance of our properties. Our property management company only manages properties that we own- this means our staff is focused on net income, not management fees or markup on maintenance. Everything about our model puts our company and those looking to invest in real estate in the same boat, chasing the same profits, and working towards the same goal of increasing our wealth through real estate. 

We offer these investment opportunities to our private network, which is made up of both accredited and non accredited investors. 

Reach out anytime, Jay!

@Account Closed We always offer prospective investors the opportunity to connect with current investors as references. This process isn't conducive to a public forum, unless those individuals who have invested take the liberty to jump in. However, I would never list investor's names here.   

@Gene D. I immediately replied to your email with more information and documents, on June 2nd. I will forward along that message again. 

@Mike D'Arrigo I see exactly what you're saying, however I'd like to give you a little more insight on the 2% share and how it relates to value of the share. 

A typical portfolio of 10 properties would have a total capital contribution of $350,000. This means individuals invest with us at $35k per door. The homes combined are conservatively valued at $50k per door. So, if you invested $10,000 then there are two parts to this: (1) ownership in capital account, which would be 2.9%, this is the amount of capital you contributed in relation to everyone (10,000/350,000)  & (2) ownership of profits, which is 2% - meaning you get 2% of all of the profit from the portfolio of properties. (calculated by multiplying 2.9% by 70% -- 70% being the total ownership that investors receive for contributing $350,000)

To sum this up, from day one an investment of $10,000 would be valued at $13,000. This is $10,000 investment capital + $3,000 of equity. $3,000 in equity is calculated as 2% of the total portfolio equity of $150,000 ($500,000 value minus $350,000 capital investment). This is pretty good... stepping into an instant 30% bump on value. 

Mike, you asked what you've missed. I will definitely say that investing with Holdfolio is not for everyone. However, those who choose to invest typically do so because of the following:

- Instead of buying one property, they can become an owner in 10. Which of course, is very strong from the perspective of diversification. 

- Instead of owning a property by yourself, you can partner with our team. 

- With the partnership structure, it becomes a truly & completely passive investment.

- There is zero liability for the investor. All of the liability rests on our company as the manager of the portfolio

- The investor's interest is protected by a legal obligation by the manager to ensure good faith 

- The investor receives all of the tax benefits of owning real estate, including depreciation write off

Happy investing!! 

@Lee Smith You are on the right track. Before we open a portfolio for investment, the properties are already purchased, rehabbed, and ideally completely rented (recently we've opened the portfolio before 100% occupancy due to demand). So, as a company we know our cost on the properties and when we raise funds our goal is to recoup a majority if not all of our capital from the properties and adjusting our ownership percentage to ensure good returns for the investor partners. 

Great point on management, Management is everything. We own a PM company that only manages properties we own- our management staff is focused on net income instead of fees & maintenance markup. The PM co does charge a standard 10% fee, which we hope will cover overhead (eventually). 

@Gene D. I'm more than happy to share some more details. Will you please send me message here on BP or shoot me an email? We can continue the dialogue from there. 

@Account Closed a few liquidity options include:

- selling the properties, in which investors receive their invested principal in return + profits

- selling your ownership in the portfolio. Our company holds a first right of refusal to purchase you're ownership if you decide to sell, as we see it as a good opportunity to reinvest our earnings in our portfolios. However, we can also help create the liquidity by match-making with other investors in order to get your ownership sold. 

- Refinance. In this scenario, the refinance proceeds would go to pay back the investors a majority if not all of the invested principal while the investors keeps their ownership in the portfolio. This will be a very lucrative option.