All Forum Posts by: Mansoor Fazel

Hi everyone, so a lot has been progressing for me in my investment career. Since my membership I have purchased my second rental and after a few months of cash flowing on both my properties, I decided it was time to expand, but also, move into markets where my dollars would stretch farther. I tried my luck at the Forth Worth \ Crowley Texas area, but was very frustrated after putting in offers on multiple properties on the MLS, getting accepted by 2 and both deals falling through ( 1 for over priced home, would not appraise and the other for finding out only after inspections that one of the tenants was a HOARDER! My business partner and I recently turned out gaze to Kansas City, as its pricing is affordable for our budget and its hopefully not as crazy as Texas was.

My question to you guys is we all understand that turn key companies are a business, and they must make a profit too. Most of that comes from relieving the fears of out of state investors, but to be honest, a good property manager can do the same. So my questions are as follows:

1. Have any of you had success working with a Turn Key Company? and what made you go that route?

2. Do any of you prefer buying direct from the seller and hiring a property manager, and why?

3. What the overall view and "feel" of the market in Kansas right now? I see some investors out there unloading their portfolio, and then I see others buying in droves. Is there a bubble? or is this market too low to be effected by things like that?

Also, does anyone have any good referrals for lenders in Kansas City? inspectors? Realtors?

Any help would be much appreciated!

Steve Snyder I would love to hear about your deals Jyotin Gautam welcome ! I am from Fremont as well and have been an active investor for a few years now. Hope you find what your looking for, but if you ever want to share info, review deals or anything , let me know. We Fremont Investors need to stick together :)

Thanks for the amazing post! I am currently looking at properties in KC, both as a buy and hold,non TK properties, and researching a few TK companies too. Thank you for the post, I will take my trip out there and use your post as a structuring tool. I hope to reach out to the companies as well and hope they give you some credit if you ended up doing business with any of them.

Im currently in escrow on a duplex in Fort Worth ( my first out of state property ) and im flying out this weekend to learn more about the community as a whole. I would love to hear more from you guys about the best parts of the DFW to focus my future investments on, and any other recommendations.

This California investor is NOT scared : )

@

Sam Gill

yes, both of my California properties are cash flowing positively. They have both also appreciated several thousands since I purchased them. The difference is the COC ROI, its much lower than out of state, but I feel like the appreciation makes up for it. I am just now starting to look at properties outside of California because I can do more with less money since the purchase prices are much lower than California. I recommend, if your just starting out, to get the first one within a driveable distance... then expand once your more experienced.

I live in Fremont too and have 2 rentals and I'm in contract for 2 more. My theory is to diversify, I wouldn't do the cash flow properties only, in out of state because they don't hold value and that means it might be harder to sell later, I have 2 rentals in California, one in Modesto, one in Elk Grove, both appreciate nicely and I was able to put good tenants in, my next is a duplex in Fort Worth, Texas, with tenants in it already. This gives me the opportunity to earn cash flow that I can apply to my income and increase my savings to buy more appreciating properties :) Happy to meet with you and discuss it more

Hi Guys!

Im an out of state investor who is currently looking at properties in Crowley, and I wanted to see if you guys had any sound advice for me, you know. Is there an area to stay away from? Is it hard to find tenants? Is it a pretty steady market there? would love to hear from people who are active investors, thanks!

I would love to hear more about the result of your experience , as I am considering getting a turn key in the Indy area as well . Thanks !

Hi Everyone,

So as a somewhat moderately experienced investor I am coming across what I believe to be a common issue. Getting the approval from a bank\lender when I don't have enough down or other reasons. I personally have between 10-20k o invest, and find several great properties in my nationwide search, but the issues start when I look for financing, or the requirement for 20% down, plus closing costs, lender commissions, etc. So I started to think about "Creative financing and alternatives" I came up with two possible options:

1. Selling partial interest in one of the two rental properties I currently own.

Explanation: I currently own 2 properties, bought under my own name, that are conventionally financed. The properties are both cash flowing and have great tenants in them. I figure a good way to get more funds for other deals would be to offer a share in the profits of the already occupied properties. Something like 50% of the property value in exchange for a fully managed and cash flowing property. Has anyone tried this? Have any advice? Would anyone be interested in something like that?

2. A joint Venture\partnership agreement to purchase OUR next rental property.

Explanation: Now that I have a little experience in both locating a property, and managing one. ( have done so for 3 years and running ) I think a good idea would be to get a few investors together, you know, those of us who have a decent amount to invest (say 20k min each) and we can work together to locate a property, vote on it, and once we find a good one, we can put in a cash offer. The idea would be to look for 5 partners, and a property within 125k. Cash would be pooled, partnership formed, and cash flow split according to your invested ratio. This would free us of the need to pay interest on borrowed funds, and we could each realize a profit with minimal involvement. Depending on the location of the investment, one of us could manage it, or if out of the area, we would hire a reputable property manager. The advantage of this is a safer bet because 5 people running the numbers and taking on the same risk would be smarter than a lone investor, and as can potentially buy into the properties if\when partners want to be bought out, or continue to work together on future properties.

Is this something anyone would be interested in ?

My Advice,

Take out a Line Of Equity so that you have access to the money if needed for any future investments. Then after the loan closes, move out of your home and rent it out, to start the process of earning cash flow on a property you already own. You might need to rent for a little while, but this will let you keep the owner occupied rates that you have on the home now, and earn cash flow to help build up your intial 10k. Once you get a tenant settled in and checks coming consistently, start looking for a new place. Now, since that home is an investment property, you can buy another home as Owner Occupied again! This means you get the low rates again, and low downpayments if needed. Find a good place, at a good price, and buy it and move in.  Fix it up if necessary, but after a year or so, do this process again. You will build up your portfolio, minimize the risks, and get the lowest interest rates possible on each deal! Once you have a few of them, you can use the cash flow to pay off mortgages, or live mortgage free in your own place (since you use the cash flow to pay it )

that's what I would do