All Forum Posts by: Scott Swanson

Hi Steve,

Do you have a solid property management company to manage it? Are you sure it's actually turn key? Many times turn key properties aren't all they're cracked up to be. Many times when we go look at turn key properties for our investors to buy, they're not turn key. We might have to paint, replace light fixtures or whatever. Very rarely do we find actual turn key properties that are ready to go. I hope this helps. Best of luck.

Hi Matthew,

I agree with Kai about turnkey rehabs. I would say that 90% of the time we go look at a property  for our investors, that's supposedly turn key, it's not. We  have to maybe paint,  replace some fixtures or whatever. Rarely are they turn key! Plus you usually pay more for them than if you had someone do the rehab for you. That sounds like it's not possible, given your situation. But we work with investors all over the nation because we do the rehab for them and also manage them. So their location doesn't matter. But be careful with turn keys. I hope this helps. Best of luck.

Hi Vicky,

One area that investors either don't know about or are unfamiliar with, is Northwest Indiana, which is close to Chicago. Once you cross the state line from Illinois, taxes go way down and property prices are lower. Yes, the rents are lower but the return can be higher, due to the low taxes. There is a lot of migration from Illinois to Indiana, because the cost of living is lower overall. The south suburbs of Chicago have good deals as well. But NW Indiana might be a place you'll want to check out.

Hi Mary Jay,

I started my business there many years ago, so I'm very familiar with it. If you're thinking about investing there, be VERY careful. House prices are low and it's almost impossible to flip there. There are a few small areas that are good for rentals, but it's a very tough market. If you'd like to know more, message me and I'd be happy to share my knowledge with you. 

Hi Arieh,

I have a program where we do everything for our investors, so their location doesn't matter. We have a property manager, a contractor and handyman crew for the smaller jobs. However, it took me well over a year to find the "right" contractor and handyman crew. Be SURE to get references, go take a look at their work and make sure they're licensed, bonded and insured. I went through probably 8 or 9 contractors before I found one that did good work, was honest and fairly priced. Best of luck.

Hi Stephanie,

Just to let you know, the market is very tight right now. Finding good deals at a good price, is difficult, to say the least. Be very careful with deals that you might see on Facebook. Many of them do not have "accurate" numbers. For example, most wholesalers exaggerate how much the house is worth all fixed up (ARV), and their rehab costs are way too low. So once you "fix" those numbers, the deal is no longer a deal! I have a worksheet that I use to calculate return on investment for each property. You plug in a few numbers and it calculates the rest for you. I'd be happy to send it you, if you'd like. But check the properties for sale here on BP and I would also suggest you find a realtor in your area who works with investors. They may be able to find you solid deals that are not listed on the MLS. Best of luck.

Karen,

Once you learn more about investing and have some written goals, you might want to look at seller finance deals or Subject 2's, if you're looking for rentals. Basically you put down a certain amount of cash, then you take over the property and are responsible for the tenant, maintenance etc. You make monthly payments to the landlord and at the same time, you make a profit each month. After an agreed upon length of time, then you pay off the seller and the property is yours. It's an excellent way to start investing with little money. Best of luck.

Zylik,

You're allowed to sell 1 property per year, without a license. 

Diana,

What happened with the hard money lenders?  

You're pretty much out of luck. They're not doing evictions unless it's special circumstances. But not paying the rent isn't one of them!