All Forum Posts by: Matthew Diionno

I am not a super active poster here, and I posted this last week in the pro forum accidentally when I meant to post this here where more users can see this. I am a grateful beneficiary of the wealth of knowledge and reviews on BiggerPockets as I have progressed in my real estate investment journey over the past few years, and as such I wanted to "pay it forward" in a small way and provide a review of my recent experience to others who are in the same position I was in before I dived off the deep end with my real estate portfolio!

For this particular discussion, I am referring to my recent experience with onboarding an outside property to Premier Property Management Group (REI Nation's management company) for other investors that may be considering taking advantage of this relatively new program that they now offer. While I am a repeat investor buying properties directly from REI Nation, I had never purchased an outside property sourced elsewhere and moved the management to PPMG. However, in late May I found a property in one of the Alabama markets that was already rented, and the numbers were great! While there didn't appear to be any issues with the existing property manager, in my opinion Premier is the GOLD standard, so I expressed my intention to transfer management upon closing. This transaction was tricky because the existing resident's lease was up in July, and with the legacy property manager notified that I would be moving to Premier, they didn't exactly go out of their way to communicate with the resident and give them a heads up about the transaction. As a result, I was concerned I would have turnover on this property within the first month of purchase. However, Devartay and team were absolutely fantastic in jumping into the situation and communicating with the existing property manager as well as the resident to ensure that they were taken care of and informed of the pending sale. In addition, Devartay was great about responding to my pestering calls and emails during the process given my concerns, and he really instilled confidence that this would go smoothly. Surely enough, as a result of Davartay and team's efforts, they secured a renewal with the existing resident AND obtained a $40 per month rent increase! I couldn't be happier with the support that this team provided me. In addition, I now also have confidence that if I ever go the outside property route again, that I will have a smooth and effortless experience! I cannot thank Davartay and the entire team enough for what they do each and every day.

In summary, whether you are considering your first investment with REI Nation, or your first outside property transfer to Premier, take it from someone who has been down this path, you will NOT find a better partner to work with than this team. Every facet of the purchasing process is just easier and more efficient working with REI than doing it "on your own," and the property management is simply unrivaled. They truly are a customer service company that happens to be in the real estate industry.

I am not a super active poster here, but I am a grateful beneficiary of the wealth of knowledge and reviews on BiggerPockets as I have progressed in my real estate investment journey over the past few years. As a result, I wanted to "pay it forward" in a small way and provide a review of my recent experience to others who are in the same position I was in before I dived off the deep end with my real estate portfolio!

For this particular discussion, I am referring to my recent experience with onboarding an outside property to Premier Property Management Group (REI Nation's management company) for other investors that may be considering taking advantage of this relatively new program that they now offer. While I am a repeat investor buying properties directly from REI Nation, I had never purchased an outside property sourced elsewhere and moved the management to PPMG. However, in late May I found a property in one of the Alabama markets that was already rented, and the numbers were great! While there didn't appear to be any issues with the existing property manager, in my opinion Premier is the GOLD standard, so I expressed my intention to transfer management upon closing. This transaction was tricky because the existing resident's lease was up in July, and with the legacy property manager notified that I would be moving to Premier, they didn't exactly go out of their way to communicate with the resident and give them a heads up about the transaction. As a result, I was concerned I would have turnover on this property within the first month of purchase. However, Devartay and team were absolutely fantastic in jumping into the situation and communicating with the existing property manager as well as the resident to ensure that they were taken care of and informed of the pending sale. In addition, Devartay was great about responding to my pestering calls and emails during the process given my concerns, and he really instilled confidence that this would go smoothly. Surely enough, as a result of Davartay and team's efforts, they secured a renewal with the existing resident AND obtained a $40 per month rent increase! I couldn't be happier with the support that this team provided me. In addition, I now also have confidence that if I ever go the outside property route again, that I will have a smooth and effortless experience! I cannot thank Davartay and the entire team enough for what they do each and every day.

In summary, whether you are considering your first investment with REI Nation, or your first outside property transfer to Premier, take it from someone who has been down this path, you will NOT find a better partner to work with than this team. Every facet of the purchasing process is just easier and more efficient working with REI than doing it "on your own," and the property management is simply unrivaled. They truly are a customer service company that happens to be in the real estate industry.

Also interested in reading an update now that several years have passed.

Now that over a year has passed on this issue, could we get an update of how things worked out and the current status? 

@Brian Bradley This is a great post! Thanks for sharing this insight!

Thank you for the reponse @Kris

I am looking to invest in a few turnkey SFR with Memphis Invest, but I am also considering other turnkey providers. From this TK perspective, even when the numbers look good on excel for my expectations, one thing I'm still trying to get comfortable with is vacancy / turnover between tenants. Specifically, I am curious about what an average number of days / months one can expect in Memphis, Little Rock, Tulsa, or similar rental hot markets. I might be under the wrong impression, but it SEEMS that these markets are particularly saturated with a large number of SFR rentals available for tenants to choose. As a result, I am concerned that it might take longer to fill a vacant SFR in markets like these than you would expect in other cities, and wonder if it would be prudent to make additional allowances in my estimates.

While I am grateful for any insight the BiggerPockets community may have, I am specifically looking for feedback from investors who have owned TKs in these markets for several years and have experience on what the turnover between tenants looked like. Did your experience align with the expectations / estimates provided by the TK provider? Were they all rented prior to closing, or did you experience a period of time after taking possession without income? What was the shortest and longest term in which your TK rental sat vacant?
 

@Kenneth Dai How are things going with your MI properties? I just signed my first contract with them and would live to hear how it’s going for you.

I would love to see an update from those in the thread who purchased from MI a few years ago in this thread. Please let us know how the experience has been. 

Greetings everyone! This is my first post, and I searched for a similar topic to see if this has previously been discussed, but I could not find one. Apologies if I missed it. :)

I am considering creating a partnership with a good friend of mine who lives in another state to purchase rental properties. He has some experience doing this already in that market, as he has 7 or so properties in that area, but he uses hard money to fund most of these. 

I have some cash I want to invest, and he is looking to do more deals, so we thought we shoudl team up! So we are trying to decide how to split things up fairly. Basically, we are thinking about setting up 50/50 ownership in an LLC that would own these properties. I would contribute my half of the cash to the LLC to buy the property, and I would loan him his 50% cash needed to fund his half. So I would be the hard money lender to him or his own LLC that would own the other half of this new entity.

I think this would be advantageous to spread some cash flow, as technically the loan would be paid each month whether rented or not (during the term of loan anyway). Plus, if for some reason things go bad, my secured note will take ownership of the other half of the property, so I would then own it outright without any 3rd party debt. On the other hand, I might be tying up too much cash in one deal / property, and I am not diversifying as much as I could. 

What do you guys think? Is this a reasonable approach? Or is there some significant risk I am not taking into account? I would greatly appreciate any feedback or thoughts from anyone here, especially if anyone has similar experience with owning and lending on the same property or LLC.