All Forum Posts by: Shai Neubauer

That's not too bad Mike! Nothing to be embarrassed about. What I would be more concerned about is the CAPEX. I'm not sure when you bought this property but to me that's what will really tell the full story. Even if these are your numbers after one year you did pay down some debt and hopefully had some appreciation

 Hi Derick,

Welcome to BP.  I am a new investor myself and used Homeunion for my first property.  I honestly think you need to do some more homework before you start investing.  You started in a great place signing up here now buy some books and do some reading.  Homeunion themselves should easily answer all of these questions for you.

 No worries I enjoy talking about this and its helpful to myself and hopefully to you and others as well.

My first year PM with them is actually only $450 for the year because thats how they originally set it up.  I did not have too much of a problem with there 1.5% of purchase price (it is 1.5% and not 1%) because it stays that way forever since the purchase price is always the same.  Obviously can be an issue during vacancies but hopefully you buy in good enough areas where they are 5% or under.  My bigger problem with them is the 3.5% fee to acquire a property which as an investor I can never do.  Hopefully they have this changed because the one property I do have with them did not include that and I am very happy with it so far.

The 1.5% does not include maintenance as I already did have a maintenance call.

I bought in what I believe is between a B- neighborhood.

"I can assure you that we dont have any control over what the home appraises for." I would never suggest otherwise.  I agree also that a house is worth what someone is willing to pay.  All I am saying is that as an "investor" I am not willing to pay market value and definitely not over market value based on comps and valuations of what other "home-buyers" are buying with me being a so called "investor".  When I buy myself a home to live in I would look at it different.  

I am a big believer that you make your money going in when you BUY.  I need to be able to buy under market value and comps.  

"If market comps are $100k and someone pays $115k, who is to say they paid too much?" The market says you paid too much.  What happens if for whatever reason you need to sell a year later and market comps are at $100k? You will need to take a loss.

 Thats a great question Michael and one that always did concern me since I am in the same position as you.  I have actually found that some of the well known Turnkey companies are selling homes well above market value.  They do come fully renovated and the management side of there business will for the most part do a great job for you.  The numbers also could make sense as far as cash flow goes.  For me though I could not see myself paying over-market for investment purposes.  These turnkeys are also somehow able to get the appraisals in at purchase price and I cant figure out how that happens.  I have seen homes with comps and market value in the 100k area and get sold by the turnkeys at $130k+.  They must be doing something right as they sell a ton of these and they always get there asking price and seem to have investors lined up for more.

 I purchased my first investment through them 6 months ago and they are still managing it for me.  For my next 3-4 investments I also moved away.  You can PM me for details.  The biggest factor for me really was there new 3.5% acquisition fee for acquiring any new investment property through them.  I just could not ever justify a 3.5% fee for investment purposes.

Hey Sara,

I have been looking at turnkey properties for almost a year now and KC was actually the first area I was looking at.  From my experience and in my opinion you need to be careful in certain areas as there is some very high crime areas and very high vacancies.  Some numbers will look amazing on paper as far as cash flow and with even section 8 tenants.  My first offer was for a property like this and I think I am thankful my offer was rejected.  Again this is just my opinion as another investor grabbed it in an all cash deal and for all I know he may do well with it.

I ended up purchasing something in Cleveland as my first property but for my second property I actually got something in Independence, MO.  I was told Independence is a bit better and indeed according to my due diligence I bought in a better area with less crime and vacancies.  

You can PM me if you want further details.

Good luck in your search!

I have been in the RE business for 6 months now buying mostly out of state turnkey properties.  Last week I went into contract for "assignment of bid" through a company that from my research is an arm of Bank Of America and sells Tax Lien Forclosure properties.  The property is an indoor garage and driveway that is 1 block away from my home.  It is part of a condominium complex.  I was told I will receive the property free and clear at time of closing in about 30 days.  I will need to "evict" the current occupant of the driveway.

The price of this driveway was at $3,500 and I have several friends that live in this complex.  There are 2 driveways attached to every 3 apartments so its first come first serve option to those who want to purchase this driveway.  One friend purchased one for $18,000 30 years ago and the other for $20,000 15 years ago.  The apartments go for between $300-500k depending on size.

I went with my gut here and the information I have in hand I just hope I didn't miss anything here.  Is this standard procedure for a foreclosure?  I know its a bit different with it being a driveway.  It just kind of sounds too good to be true if I can resell these for 10x what I paid.  Parkign spots are also hard to find in this area and can easily go for $200-250 per month.

 Hey Jay just catchign up with this thread now.  Would it be possible to send this ebook my way as well?

 Please send Florida to [email protected]