All Forum Posts by: Ryan Planchon

Investment Info:

Single-family residence buy & hold investment in Memphis.

Purchase price: $75,000
Cash invested: $22,141

3/1 SFH. This property was an older frame but a complete remodel. Everything brand new! Plumbing, AC/Ducts, Electrical, Kitchen, Bathroom. This one broke the ice to keep me going to my next property.

What made you interested in investing in this type of deal?

Miami's buy and hold investment numbers don't work right now. Had to go where the numbers work. Attempting to BRRRR OOS was going to be a bit much. So decided to get in the market Turnkey style.

How did you find this deal and how did you negotiate it?

I worked with a Turnkey Company in Memphis, TN. They were a complete purchase, renovate and manage under one roof turnkey company.

How did you finance this deal?

Conventional Loan. 20% down, Purchased Points to get the rate to 2.875.

How did you add value to the deal?

It was a fully renovated property at purchase.

What was the outcome?

14.44% COC Return. $266.66 Cashflow.

Lessons learned? Challenges?

Started with Turnkey to learn what working with a property manager would be like. OOS BRRRR podcasts that failed and plenty of other forums posts pushed me to start with Turnkey Model. Didn't want to start this journey loosing money. It was a fairly simple process mostly paperwork.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

www.turnkeyinvest.com @stephaniejones is completely and totally awesome.

Originally posted by @Bradley Sriro:

Hey @Ryan Planchon, I am reading one of Mark Kohler's books now titled "Lawyers Are Lyers". Based on what you are looking for, I would recommend it. It goes into what does and doesn't work in terms of asset protection, structuring, etc. I also like the fact that Kohler is both an attorney and CPA. I was also looking at Royal Legal Solutions but the $150 fee to set up a consultation call really turned me off. Like you, I am just looking to become better educated so that I can make an informed decision on which professional offers the services I need and whether they are a good fit for me. I am also in Miami by the way... 

Awesome.  Was just about to purchase, and no Kindle edition on that book.  That's a first for me.  Wow.  Kinda pricey.  Is it worth it?  LOL

I did purchase his other one, The Tax and Legal Playbook.  I think it might be next on the list to read.

Originally posted by @Whitney Hutten:

@Ryan Planchon I feel your pain! Check out KKOS (Mark Kohler).  They are experienced and reasonably priced.  I'm not a fan of the subscription model for legal/accounting for those just starting out.  As you experienced, it can hit your cashflow hard!

Mark Kohler seems to be a common answer.  Connected on his channel now and have started to binge watch.  Thanks

Originally posted by @Mary Cronin:

Where are you located? NV LLCs & corporations are touted to CA investors - until the Franchise Tax Board tracks them down and charge them with back taxes and penalties. 

If you're not in NV and do business with an NV entity in another state, you have to register it as a foreign corporation in the other state. So worst case scenario is now you have to comply with NV laws AND your local laws - it's rarely worth it. 

I'd recommend Mark Kohler too. He set up my CA corporation. Offices in UT and CA and attorneys licensed in multiple states (?). 

@Mary Cronin

I live in Miami, FL.  1 investment property in my neighborhood.  Starting to purchase in Memphis.

I started watching Mark Kohler last night.  Will probably end up binge watching his youtube channel and more.

Thanks

Originally posted by @Christopher Smith:

@Christopher Smith

Your right. Already doing all that with insurance. Liability is 1M.
Plus 1M in umbrella. Will increase as assets increase.

Just looking to stay educated. An insurance sales man is great as selling insurance, just like the lawyers are good at selling LLC protection. Just looking for material to educate myself.

@Christopher Parsons Awesome. Thanks

Found lots of posts about "Should I create and LLC? Yes! No! Get Insurance! Go watch dancing with the stars! But where can you find materials for asset protection research?

1. 1. I read this book: Your Best Business Entity For Real Estate Investing: LLC, S Corp, C Corp, Partnership, or DBA? By Michael Lantrip. It kinda helped but just really describes each entity but now how to meat and potatoes.

1. 2. Called my local estate lawyer. How much to start and LLC? $2500. Ok Thanks got to go! There goes all my cash flow.

1. 3. Nevada Corporate Headquarters. Basic set up is LLC in Nevada. Register LLC in State doing business. Each property in a Real Estate Privacy Trust with the LLC as the beneficiary. Can have up to 75 trusts in each LLC. Where can I find information if this is Effective? Price worth the protection? Is my accountant going to freak out? Ongoing costs that I am not being told? What surprises are there?

1. 4. Royal Legal Solutions out of TX. Watched the basic video explaining the set up. Similar to above but using a Series LLC as Parent/Child. Attended a webinar that was the same video I watched previously so didn't get much more out of it. Made appointment to find out the next appointment is $150 to set up a 1-hour consultation to put a plan together. You get the plan when you are done if you want to go do it yourself. Over all I think this would run $5000-7000 for me since I have my basic estate plan in place. I think there is a $49 monthly charge for something they call family package? Same questions: Where can I find information if this is safe? Effective? Price worth the protection? Is my accountant going to freak out? Ongoing costs that I am not being told? What surprises are there?

1. 5.  Watched this Video with Matt Faircloth: https://www.youtube.com/watch?v=edHaGYXhH1I&t=3s
   1. This was informative and is kind of where I am at right now with an umbrella policy. Is it enough?

1. 6.  Haven’t talked to Cooperate Direct yet that advertises on the Rich Dad Podcast. Experiences?

1. 7.  I have done lots of googling but don’t really end up with much?

My biggest question is: Where to find materials to read on asset protection? Is there a way to do the above yourself? Any books you can recommend or another website?

Thanks Forum!

@Moises R Cosme

Awesome! Thanks!

Inspection for sure. Great idea on the rental history.

I am about to put in a offer on a Duplex.

One side is occupied with the tenant month to month and been there for 5+ years.
The other is vacant with someone suppose to move in at the end of the month.

When do you ask for copies of the leases?

Thanks!!

Anyone have and accountant recommendation in the Miami area?

I am starting to build a portfolio out of state is someone has experience dealing with that.