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All Forum Posts by: Kalen Jordan

Kalen Jordan has started 31 posts and replied 144 times.

Originally posted by @Caleb Heimsoth:

@Kalen Jordan because what you’re suggesting costs money and there’s no need for it. Some providers I’ve seen provide most of the information you’re talking about. I’d just find one like that.

At the end of the day, it doesn’t matter what online source you use, it won’t (in my opinion) be enough to do proper due dilligence.

Yeah I'm still in search of The Best Turnkey Provider 🤣 - which one have you seen that provides the best data?

Originally posted by @Account Closed:
Originally posted by @Kalen Jordan:

Been checking out a number of data sources recently - some paid like neighborhoodcout and quantmaps. I've been asking myself what best practices should be for due dillegence packets that turnkey providers have.

One thing I really liked about Bridge's turnkey DD packets is that they include rentometer data.

I've been thinking it would make a lot of sense for turnkey providers to include neighborhoodscout reports - especially as they tend to focus in specific markets and the cost for NS should be fairly nominal for them, whereas for potential investors who are looking at 10s or 100s of properties across the country, running a NS report on each of them quickly becomes cost-prohibitive.

What do you consider the best practice around DD packets for turnkey providers?

I don't provide a Due Diligence package for any of my Turnkey buyers. I expect them to come to Phoenix and walk the neighborhoods and the various houses with me. I then give them the resources to do their own research if they don't already have sources. If they are unwilling to do that, they are uninformed investors and only create problems later on.

Maybe "due diligence" is a bit confusing in this context, as of course the burden is always on the investor at the end of the day to do their due diligence, by definition.

But certainly it's the job of all turnkey providers to simplify the process of investing in real estate for investors - also by definition. And part of that involves providing information and research about the property to demonstrate to the investor that it's a good investment.

I'm just asking why not standardize on certain well known sources of data to assist in the research process.

> I've been buying and working with turnkeys since 2011 and I've never known a seller to offer a "due diligence packet".

See attached.

Well "use the internet" is a bit broad. The reason I mention neighborhoodscout and rentometer specifically is that from the research I've done to date they seem to be among the best 3rd party data sources for what they provide, which is why I wonder whether turnkey providers should standardize on providing those.

Been checking out a number of data sources recently - some paid like neighborhoodcout and quantmaps. I've been asking myself what best practices should be for due dillegence packets that turnkey providers have.

One thing I really liked about Bridge's turnkey DD packets is that they include rentometer data.

I've been thinking it would make a lot of sense for turnkey providers to include neighborhoodscout reports - especially as they tend to focus in specific markets and the cost for NS should be fairly nominal for them, whereas for potential investors who are looking at 10s or 100s of properties across the country, running a NS report on each of them quickly becomes cost-prohibitive.

What do you consider the best practice around DD packets for turnkey providers?

Post: Need help in 38141, Memphis-

Kalen JordanPosted
  • Austin
  • Posts 149
  • Votes 80
Originally posted by @Thomas B.:

In Memphis one street can be good and the next a war zone and this is very true in the 38141 zip code.  I also own a few in the 38141 area and they are good for me, but this is not an area I would invest in without boots on the ground.  

Isn't it safe to assume that you can tell a warzone from a Class B/C from google street view? Not that I'd make an investing decision purely off of google street view obviously but I'm using it as one of my screening factors.

This one neighborhood I'm looking at looks very nice. Can you point to any warzones in google street view in this zip?

Noticed they have really good ratings on google and some good content on their site but haven't seen any feedback on them on BP.

Originally posted by @Michael Ealy:
Originally posted by @Kalen Jordan:

Interesting - I'd have thought that holding it essentially forever and having the tenants pay off your mortgage and then getting a pop at that point would give you the best ROI - similarly to how people tend to long term hold SFRs.

I realize additional capex expenses come into play down the line but don't you just have to properly budget for them?

Kalen,

Budgeting for capex becomes harder over time or as the building becomes older. After we renovate the building, we have more control on the repairs & maintenance and we have minimal capex in the first few years of holding it (since we renovate our properties the right way).

Yes you do get a "pop" on the CoC when the property becomes free and clear but your ROE (return on equity) drops significantly. That's basically "dead money" sitting in the property that could be put to better use - say through refinancing and then investing into another project - which will result in higher return for you and your investors.

Having said that - I also own houses (I have 45 of them) and I prefer them to be free and clear. Why? Because their vacancy risk is costlier than apartments. You get 1 vacant house for 2 months (with a mortgage) and your entire year's cashflow is gone. That's not the case with apartments. You get 1 vacant out of 20 units and you're still fine even if you have a 75% Loan to Value mortgage.

Got it that's super helpful and makes a ton of sense.

So far my takeaway is that there is not much consensus on this question 🤣😭 

I was curious why PM recommendations tend to be sent privately? I've noticed that trend on many threads now.

I was researching the area and it would have been helpful to see the PM recommendation here in the thread :) (As I'm sure it would be for future investors as well)