All Forum Posts by: Matthew Aubert

@Matthew Aubert

Sounds like you're jumping in with both feet when you, respectfully, don't know what you don't know. Take a moment and read about all the others on this site that did the same and lost tens of thousands of dollars. It's a huge mistake to think you can get a few answers here and be prepared for negotiations, contract, contract law, survey, title, etc. Rethink your decision. Partner with a verfiable, seasoned investor who can provide guidance and in return get a piece of the deal. Please rethink you decision to move forward without the help your post clearly indicates you need. 

@Matthew Aubert I would only pay all cash if that means the price is significantly cheaper. Otherwise, there is not much leverage. Remember - The less cash you put down, the more cash on cash you have, and the more your money can work for you. 

I would use your own realtor so that you get representation and someone can answer all your questions with your best interest in mind.  If you use the seller's realtor, they are representing the seller, not you and should share all the information you provide with the seller.

You will have closing costs even with all cash transaction and some of that can depend on how the contract is written.

At minimum you will have an escrow fee...somewhere around $400-$500 for the title company handling the transaction.

Who is paying for title insurance?  You or the seller?  That's negotiable on who pays, but the amount itself is set by law.  Cost is based on the price of the home.   Not required, but recommended.  

Who is paying for the survey?  New survey might be around $500 depending on where the property is, and how large, and some other factors.   Possible you could use an existing survey.

Will you get a home warranty?  Who is paying for that?  You or the seller?

You will probably have a charge of $150 to write a deed and perhaps another $30-$150 in filing fees....should be on the lower side of that.

You should get a deed the day of closing, but the recorded deed normally comes back to you a few days or maybe a month later after it is recorded with the county.  You could get that by mail or email.

Insurance on cash transaction is not required, so that part is up to you.  You may can pay monthly, yearly or not at all.   You arrange for that if you want it.

Taxes will depend on when you buy the property and if taxes have already been paid for the year.  Typically now if you close in the next month or few months, the title company will collect some taxes from the seller for 2020 taxes and give you a credit for that.   Then you pay the entire bill when it becomes due in December 2020/January 2021.

If there is an HOA you may have a transfer fee or capital contribution fee.

That should cover most of the big stuff.....occasionally there can be other charges as well.

@Matthew Aubert I have never used them but my brokerage in Columbus, Ohio does a similar thing. We assist our clients in searching, purchasing, closing and managing properties. I would talk to a few agents at the company and see if you can trust them.

Yeah, turnkeys and turnkey companies are definitely a thing. Most of my portfolio I bought through turnkey providers. There have been people who have gotten screwed, certainly, but most of the cases I know of that was based on a serious lack of due diligence on the part of the investor. It does make a difference which provider you work with--some are better than others and some are terrible--but the concept of turnkeys is a real thing and I know for my own investing it's basically the only thing that got me into REI (I never wanted to swing a hammer or do that much work). You can search turnkeys in the search thing and you'll find a million posts that talk about them. Some people absolutely loathe turnkeys, but most of those people are value-add investors who just for whatever reason bash the concept because you can't value-add on them. But not everyone wants to do or has resources to do value-add (or like in my case, interest in doing it), so turnkeys are a great alternative in my mind. Reach out anytime if you have any questions. I have a turnkeys Facebook group and stuff I can connect you with if you want to learn more.

Hey Ali, thanks for the info. Let's connect becasue I have a few questions mainly concerning closing. It's nice to meet people with experience and can shed light on topics like this without going through difficulty or issues. Thanks. 

Good Morning Matt, I hate jumping in on threads like this, but I probably dislike bad or misinformation worse!  For disclosure, I am one of the partners and owners of the company you are asking about.

Here is a thread on BP https://www.biggerpockets.com/...with close to 50 responses from an interested investor like yourself asking about my families' company.  You can also search the forum threads for the Keyword Memphis Invest to pull up a few more threads.  I suggest that you reach out directly to investors who have posted their experiences and ask them for updated, direct feedback.

When I was in Los Angeles last meeting with some of our investors in that area, a common story from them was about receiving private messages from investors on BP about their experiences.  I would suggest that you find investors in the forums who have posted in the past and private message them.  Unfortunately, they all say the same thing about posting here on BP.  They end up getting bombarded with solicitations.  You've already had some on here although they were pretty subtle.  Some will be way more blunt.

I know Lauren McNary has reached out to connect with you in response to your registration and I would encourage you to do that.  She can help answer your questions about Turnkey real estate in general and any specific process questions you have.  

My advice is to be patient and learn as much as you can on how a company or companies work.  There are many ways you can invest passively and you may find purchasing with a Turnkey provider to be the best fit for you. You may also find that it is not.  You can absolutely lose money and time as you were concerned about. But, that is the same with any investment.  If you are patient and take your time, you can find success with Turnkey real estate as many investors before you have done.

Best of luck to you!

and...just as an FYI for anyone who posts that we don't do property management, we started managing in 2005 and currently manage just under 6,000 properties in seven cities for roughly 2,300 investors and all of those properties were purchased through a turnkey process.