All Forum Posts by: Kevin Kite

I bought a turn-key from USREEB about 8 months ago.  It was my first purchase so I understand how nervous you are.  I took a trip out there and I would not advise spending 100k without looking first.  My trip from LA for a three days in KC cost only about $600.  That is a small price to pay when risking 100k.  

I setup a visit with a couple turn key providers and also had a real estate agent show me many other homes.  I decided not to buy with an agent because I did not feel comfortable doing a rehab from LA.  

When looking at the numbers I could clearly see the chunk of money the turnkey's made off of me.  I figured in my time to find legit contractors and worrying about what type of work they would do was not worth the money I "might" save by doing it myself.  So I went the turn key route.

I was impressed by USREEB as they have a professional office and employ several employees that know what they are doing.  I had Mackaylee Beach show me several options.  Then I met with @Sean Tarpenning.  I threw dozens of questions at both of them that they answered easily.  They are straight shooters and good people.  I felt like they cared about making the deal work for both of us.

With USREEB they sell and manage your property.  I like that aspect because they have more ownership to make it work for the both of us.  They want return buyers and they make money off being your property manager.  It is a huge incentive to make sure you are taken care of.

Now the bad.  The C properties are in questionable areas but also priced to reflect that.  The rehabs are not high end because these are not mansion properties (although they are rehabbing high end properties now).  

I ended up buying one of the C properties because it was a condo with an HOA. I felt the HOA was another set of eyes to watch and upkeep the property. I bugged the PM group on when payments were going to hit my account for the first few months but then I learned to relax and let them do their job.

My property, 8 months later, is as advertised.  The tenants have not missed one payment (even though they can't guarantee that).  I am so happy about the property that I am going to back to KC in a couple weeks to buy another.  I will also visit other turn keys and look at other options of course but I am hoping USREEB gives me the best deal.

Hi Seth,

I don't have any rehabbers for you but I wanted to say hi.  I live in Calabasas and have started to invest in KC, MO.  Maybe I'll see you at a meet up!

I am looking for an experienced rehab team in the Kansas City, MO area. Must be able to do full remodels including kitchens and bathrooms. I will need references and be able to see previous work done.  Please no side job handymen. 

Referrals welcome. 

Thanks for reading. Have a great day!

I will be traveling this weekend to Kansas City, MO. I am looking for an investor friendly buyers agents. I am looking in the 40-100k range with some rehab. Message me for more details. Referrals from existing investors welcome. Thanks!

I am with @Jeff Greenberg and the even has changed locations to Lares.

2909 Pico Blvd, Santa Monica, CA 90405

It is just down the road from the original location. 

I am looking at a 1700 sq ft 3 bed 2.5 bath SFH that rents for $900 a month. I was running some numbers and figuring in capital expenditures on a home at 10% since the home is on a sound foundation, built in the late 1980s, had the roof replaced 5 years ago and has a brand new water heater. Maybe that number is high but I was trying to be cautious.

I found out the current owner is using a home warranty that costs $550 a year and $75 a service call with free repairs. 

I have seen little talk about using home warranties on rentals. Is it worth it?  If so, how much should I budget for capital expendatures if I also have a home warranty?

In my situation 10% cap exp = $90 a month. 

Or home warranty with one visit a year is $52 a month. 

Thoughts?

Great thread!  Thanks for the updates @Michael L.

Question for everyone - why is it that when I see investors run their numbers on turnkey they almost never include capital expenditures?  On the BP calculator it suggests adding 5-15% expenses for this. 

Thanks for always sharing you knowledge Joe. I really enjoy your podcasts also.  Keep up the good work!

Send me the list for handymen or rehab experts in the KC area please and thank you! 

Via a special Fannie Mae program known as Delayed Financing, U.S. home buyers and real estate investors are no longer required to wait 6 months post-closing to refinance a home bought with cash.

You can now refinance your home within 24 hours of its purchase, and still get access to today's great rates.

The "Delayed Financing" Mortgage Program

Fannie Mae first introduced its Delayed Financing Rule in mid-2011. The program was intended to help sell homes which would otherwise go un-purchased.

It was meant to help buyers and real estate investors purchasing "unlendable" homes in foreclosure. Properties can be unlendable for a multitude of reasons.

The most common reason is inhabitability.

Homes without running water, for example, are unlendable because no person could reasonably live there. The same is true for homes with broken windows, or lead paint, or a busted roof.

Yet, these same homes are often sold at attractive, bargain-like prices for buyers with the available cash -- and this is where the Delayed Financing program shines.

Via Delayed Financing, a buyer can purchase a home with cash, perform the home repairs necessary to make the home "livable", and then do a cash-out refinance to recapture the assets used to make the purchase.

For many borrowers, Delayed Financing is simpler than home construction lending or the FHA 203k loan.

Another common use of Delayed Financing is to support buyers required to close within 3 weeks of signing a contract. While there's a possibility of closing a purchase loan within 21 days, the short time frame leaves little room for error.

Delayed Financing can take the pressure of the transaction. Via the program, the home can be purchased with cash, and refinanced immediately afterward.

How To Apply For Delayed Financing

The Delayed Financing program has been widely available since 2011. Prior to its release, home buyers and real estate investors could not cash-out refinance a purchased home until six months had passed.

Today, the cash-out refinance process can begin immediately.

In order to qualify for Delayed Financing, you must only meet certain eligibility standards :

• The cash used for the original purchase must be documented to the bank
• The new loan size may not exceed the property's original purchase price
• A title search must show that no liens exist on the home

As a fraud-prevention measure, you must also show proof that the home sale actually occurred.

The simplest way to prove that the home was sold is to provide your loan officer with the original HUD-1 document from the closing. The HUD-1 must show no evidence of a lien, and it must be signed by all parties.

Your lender will also verify that the original transaction was arms-length.