All Forum Posts by: Robert Motch

Brooke-please email me info

[email protected]

Thank you!

What complications arise if I raise a pool of capital from outside investors and act as the buyer’s agent for the pool of capital for any purchases?

Thank you all!

The other partners are ok with what I do so long as I continue to control my interest in the partnership. 

I have a partnership interest in a commercial building that is projected to generate a cash on cash return of more than 12% and ROI of 15-16%.

I would like to pull the cash out of this partnership interest and use the cash for the down payment on my next deal. 

My initial thoughts were:

1) find a private investor to hold a note for the value of the partnership interest at an agreed upon interest rate. My partnership interest would be the collateral for the note.

2) find an equity investor to invest the value of the partnership interest and then agree to a profit sharing split with this investor.

What structures have other investors created to accomplish a similar goal?

Thank you all for your responses.

I am looking to make an offer on a fully rented, professionally managed duplex in Pitman, NJ. I am looking to start a relationship with a commercial/asset based loan provider who would finance this property as well as future properties like this in this area.

Please see notes regarding this property below:

Offer Price=$150-170k

LTV needed=75-80%

Monthly Rent=$2,385

Annual Taxes=$7,000

Newly formed LLC

Please PM if interested.

@Grant Ancelet - if you are planning to use a property management company for any or all of the properties, have the property management company take a look at the properties with you to see if they would be willing to manage them. If there are any properties that they wouldn't manage, ask them why.

Also, check to see that the current tenants have leases in place and find out how long they have been in the units. Beware of the seller throwing a bunch of friends and family tenants who don't plan to stay or pay under the new ownership in there over the past few months to make the properties look good so that they sell quickly.

@Matt Leonard - congrats on your upcoming purchase!

I would hire a property manager from day one.

While I completely understand the argument of managing your own properties at first as this is an invaluable experience and a great way to juice your returns, I consider myself a real estate investor, not a landlord. I didn't get into real estate to be a landlord/property manager. If I can't afford to hire a property manager, then it is either a bad deal and/or I can't afford to be a real estate investor.

I have always had property management in place prior to closing. In fact I run the property by my property manager prior to getting the property under contract. This way, if the property manager doesn't like the area or something else about the property gives them any hesitations regarding whether they would manage the property, I know ahead of time and can take this into consideration when deciding to move forward with a deal. I don't want to own something that my go-to property manager doesn't want to touch.

@Hank Keller @Ali Boone

Thank you very much for your replies and sharing your experiences. Much to think about here as I explore And determine if turnkey opportunities make sense for me.

I currently own out of state properties that I purchased in rent ready condition and have a team to manage the properties and manage any repair/rehab needed on the properties. I am considering purchasing turnkey properties to diversify into other markets. 

I am curious what peoples' long-term experiences have been with their turnkey investments.

Do you still own the properties?

How long did the original tenants stay?

Are you still using the original property management company?

Do your properties continue to rent fairly easily?

How much time are you spending on your properties?

How long was it before the properties started needing repairs?

How has your turnkey experience compared to finding properties, hiring a property manager and managing the property manager?

Thanks everyone!