All Forum Posts by: Mike E.

**Update- So after posting my experience I received a call from @Chris Clothier himself, and wanted to hear about my experience. Folks, its unfortunate that we don't encounter more good old fashion gentleman like Chris int the business world, it would be a better place. Chris offered to MAKE ME WHOLE on my investment to ensure that I was getting what I thought I was. It is not common for them to buy back properties but he felt it was in my best interest to make me the offer. I am extremely thankful and rejuvenated after speaking with Chris. I look forward to continuing my RE endeavors and am more than pleased that I chose to do business with a guy like Chris, our relationship is far from over :)

Thank you everyone for your posts and feedback, this community is unlike any other for all of us like minded, risk taking, life designing individuals! 

@Matt R. @Jay Hinrichs it's in the tenants lease agreement. 

Thanks everyone for the feedback and comments! Bp is an awesome place and I've learned a ton from being apart of this. I am excited about what's to come and I feel fortunate that I can invest in real estate and have all the folks here on Bp!

Guatam I would love to hear more about that, the property is Watauga- 

The high insurance is because its in a flood plain and the extra cost is the flood insurance.. I considered PM and Insurance on the front end, but went with the estimates of my TK provider - dumb move.

Thanks Nnabuenyi! I know i still have a lot going for me on this deal... The house appraised higher than the purchase price (by only $100) but none the less, it was ok for appraisal. I have the tax, depreciation and equity build of my tenant paying rents and paying down the mortgage. My main issue is this was not what i was expecting to make on roi- $100 a door profit doesnt give me much power to pay down the mortgage quicker for faster equity.. Thanks for looking at the bright side! Yes its definitely not a LOSS, I still have POSITIVE cash flow and I am building equity!

Ok so I am extremely embarrassed to put these numbers out to the public but hopefully someone can learn from my amateur mistakes...

I bought a house in DFW area from a Turn key provider, apparently the best in the business (Memphis Invest). I flew out, spent the day and was satisfied with everything I saw. So I am ready to make the move... Well hit some hiccups along the way and ran into much higher insurance than what was proposed - by about $500  The estimated number on the initial estimated sheet looked like this-

Purchase - 128,900

20% down - 25,780

closing costs - 1,500

Rent approx - 1,225-1,325

Est Prop Taxes - 2,329

Est ROI - 13.46%

Est cash flow after fixed expenses- 13.46%

Hooray! Right? Nope, wrong... Here are my actual numbers 

Purchase - 128,900

Down payment - 25,780

Closing costs -  2,966

Prop Taxes - 2,842.8

Insurance - 190.58

Rent - 1295

PM Fee - 129.5

Actual cash flow after expenses and 5% vac and 5% expenses - $92.80

Actual ROI - 3.7ish %

Folks, not that I didn't know before, but ALWAYS, I mean ALWAYS check ALL of your numbers. Also, never take anything for face value when dealing with anyone. I thought I could trust my "adviser" but that clearly is not the case. I am quite embarrassed as I clearly did NOT analyze this enough... I did work my numbers, but when everything shook out at the end these are the real numbers. I found myself half way into this deal with my earnest money on the line and almost walked away the day of signing as i wasn't feeling comfortable, but I clearly should I have.  I really wanted to make this work for me as I am a busy professional that doesn't have the time to go to auctions/hunt through mlls/finds deals, rehab, list, repeat... I am also in market that you cant buy and cash flow out the gate, we are also on the high end of the market fluctuations right now in So California. 

I am definitely going to look at other strategies and perhaps other turnkey companies to see what else might possibly make sense. I have a goal to acquire many more properties in the coming years, my primary target currently is 10 in the next 6 years. I have already bought 1, so 9 to go! Any tips, advice, strategies or opportunities are welcomed- please PM me. 

@Tom Murray I am looking in the riverside market at buy and holds- I would love to chat with someone who has a bit of experience in the local market. 

@Joshua Dorkin @brandonturner I finally got a "riverside" after posting my question. I have searched the forum and found Riverside all over, so i know people are using this word. I have had these keywords up since i purchased Pro and havent got a single hit.. 

Also, the @ isnt working... I put

 @Brandon Turner I have set up numerous Keyword alerts and have yet to get notice. I used very vague term like "riverside" and nothing still. Any assistance is much appreciated. I am pretty savvy on the computer, but cannot figure why i havent been notfied of anything. I find hard to believe NO ONE has posted anything about Riverside CA - thanks in advance!

I'm new to the REI game, but have been in sales for almost 10 years- Persistence has won me more business than anything else. I had a client tell me once after the 9th follow up(per her direction) and she finally bought, that I was the only rep to actually keep following up with her so naturally I won... I haven't stopped following up with folks since.. Way to go @Kyle Kufeldt!

"Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not: unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent - Calvin Coolidge