All Forum Posts by: Silas Melson

I’m trying to get my feet wet in real estate investing, but I’m drawn more to the passive route. Active real estate investing doesn’t seem to float my boat. What are people’s opinions on turnkey? What are the typical fees that turnkey investors charge? Are they flat fees or percentages? My goal is to achieve a good cash flow and rent out properties for a long time. The cash flow first, the appreciation to be the icing on the cake.

The cash flow first, the appreciation to be the icing on the cake"

this sentiment is one of the worst I see on BP not sure who espouses this and why all these investors say the same thing but that's really a recipe for disaster for the investors.

If your leveraging RE to the max U know 20 to 25% down . And your RE does not go up in value a significant amount and I am not talking 2% or 3% a year. When you exit your will lose money. And unless your going to hold for life ( which not many do) Appreciation is where the wealth is made.. Its better to buy assets that will appreciate ( historic ) and be break even or a little negative. Or one needs to pay cash for the rentals. So you have some meaningful cash flow that can be saved to expand your empire.

@Nicholas L. Nick is a sharp investor U may want to see if he will engage you off line for some deeper dive in methods for success

Forgive me for my confusion, reading statements are way harder to understand than hearing them, are you saying that if someone puts the typical 20% down they are better or better putting that money down on a property that they know will appreciate for the long term and not even worry about cash flow? I only think appreciation has “icing on the cake” because of Brandon Turner (lol).

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Quote from @Nicholas L.:

@Silas Melson

hi. a few reactions.

1. there's no cash flow in the short term on a turn-key property. none. after the property is stabilized, the rent has increased, etc. you may see cash flow. that is typically 5-10 years+ of ownership.

2. turnkey isn't entirely passive. you have to manage your property manager. they are responsible for doing whatever their management agreement says they're responsible for, and you are responsible for doing what it says you're responsible for. if you ever have a major repair, or an eviction, or a major turnover, you may need to be a little more 'active.'

hope this helps. turnkey might be a good fit for you. but real estate is a long game.

I would be in it for the long game so I would be hoping for cash flow and appreciation knowing that the cash flow may not be as high as if I did all the dirty work. I believe any investing is a lot about you get what you give, but quick question- I’ve read and listened to a few podcasts where people claim they get fast cash flow once they invest in turnkey. I’ve seen statements about how the properties being purchased have tenants a lot of the time, what is your opinion on that?

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New investor here. I’m stuck when I try to run numbers on a potential deal, how do you generally estimate rehab costs? I don’t know where to start on such topic.

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All Forum Posts by: Silas Melson

Silas Melson has started 2 posts and replied 4 times.

Post: Turnkey Investing Concerns

Post: Turnkey Investing Concerns

Post: Turnkey Investing Concerns

Post: Estimating Rehab Costs