All Forum Posts by: Kellis Landrum

@Ellis San Jose

This all makes sense. As far as the documentation goes, are the items you mentioned something you would need a lawyer to evaluate? Are there things to look for/watch out for that would let you know if the documentation is good (or not)?

@Tim S. Thanks that's very helpful. Any ideas on where I might find some good (hopefully free) info on what to look for when buying a performing note?

I’m looking to learn the note business starting with performing notes.

I would like to find a way to do this for a (relatively) minimal entry point of around 10K per deal. I would like to ladder out a few of these deals, buying one every few months. In a nutshell I’d like to start with small deals and work up to bigger ones. This would help to accomplish the following goals-

1. Allow me to learn incrementally over a period of time while still in my day job
2. Create yield that I could then sink back into buying more or bigger notes
3. Mitigate the risk of buying one bigger note with no experience in the note business

I realize that 10K probably won’t get me a performing note, but I understand it’s possible to get partials for small amounts like this. I understand that note buyers like getting nice double digit yields plus kickers on notes, but at this point I am more concerned about learning the business by doing and building relationships rather than maximizing profit.

I have been listening to a lot of podcasts on notes and got quite a lot out of this post- https://www.biggerpockets.com/forums/70/topics/411915-where-to-find-education-on-notes

I've checked out some of the paid and unpaid educational stuff listed here, but I think all of them end with the same advice- Find a JV Partner and pull the trigger. I gave PPR Note Co (Dave Van Horn's shop) a call, but it looks like they said they are now putting all but a scant few performing notes into their fund which is only open to accredited investors (which I am not).

So I suppose the question from here is how to go about finding a good JV partner. I'd ideally like find someone who I am investing along side rather than just buying from, but who wouldn't mind working with a noob. Any suggestions would be appreciated.

@Mike S. I live in LA and I'd love to connect. Are you investing locally or out of state?

Hey @ShamimT, welcome to the community. Sounds like we're in a very similar boat :)

I'd love to hit a meet up as well. Message me if you find anything.

Congrats @Okema M. Very inspiring!

@Jacob Blakett Here's the thing, if I can't sell a house, a car, a stock, or a cup of coffee for what I paid for it I'm pretty sure I bought above the market value. That said, I probably buy an overpriced cup of coffee a few times a week for the convenience factor :)

I can understand that part of what makes TK properties what they are is the convenience factor. I am not spending time in the area hunting down better deals so TK would be at a premium because someone else is doing this for me. 

If I can be totally honest, this is partially because I don't yet know how to go about finding better deals. If other investors are buying at actual market value (or even a discount), how are they finding their deals?

Hey Gang,

I joined bigger pockets a few months ago and have been reading up on a lot of great info. 

I am looking to buy in Memphis (38115) from a turn key provider. I have found a few forum threads where people who have bought TK rentals have found when the go to sell them that the house is not worth what they paid for it-

http://bit.ly/1R68VZp

http://bit.ly/1MqwcWK

I would like to avoid this if possible and wanted to get advice on how to properly determine the market value of the property. If there's anything I've picked up from BP, it's that "buying right" is a critical part of investing successfully. My financing requires a 3rd party appraisal. Are there any further steps beyond this I could or should to take to get an accurate idea of the properties true market value?

Thanks @JasonHartman, your SEO is too good :)

Every search with your name in it leads back to your site. It's tough to get an independent second opinion.

I ran across Jason Hartman's website/podcast and am intrigued. Is there anyone here who's bought properties from his company that could share their positive or negative experience with me?

For what it's worth, everyone on BP seem to have a good opinion of Chris Clothier's company as well. I'm also considering that as an option.

Just for background info about why I'm interested in turn key rentals- 

I have not bought real estate before (I live in Los Angeles, crazy expensive), but I like the concept of buying and holding rentals much better than stocks, bonds, or mutual funds. Since I have no experience buying or managing property, this turn key option seems like it might be a good way to learn without necessarily having to jump into the deep end. It looks like many of you Real Estate Professionals like to buy distressed properties to rehab and flip or rent, but that might be a bit of a stretch for my first purchase. 

As a side note: I'm interested in the Atlanta market. Lots of film and TV production has moved from LA to ATL, so I now have several friends who've moved out there. I'd like to do some due diligence on houses, and since I have a few places to stay this seems like a good location to start.