All Forum Posts by: Jeff Wallenius

@Christina Womack my parents grew up in Castro Valley and my grandparents still live in San Leandro off of Washington Manor. I was down recently and couldn't believe the price of real estate in your area. There are many opportunities to stretch your dollar further, but as you said there are also pitfalls to be aware of. We invest in 10 different markets and can pass on advice if your looking out of state. Best of luck!

@Jonathan MacMillan there are many opportunities across the nation, it finding a trustworthy provider that is the real goal. Have you considered new homes as an option for your turnkey rental? The beauty of that model is the 5 year warranty on the house, and a minimal monthly allotment for maintenance reserves which help boost your monthly cashflow. Oklahoma City is a market that is a bit off the radar but has a nice upside and prices are very competitive. We have done well in many midwest markets. Happy to assist if you need further input.

@Justin S. everything has a price. I would not be afraid to negotiate any item in the process of buying a house. In our area the low ball offers are going to be difficult to stick. Too much competition and the market is too hot to try and low ball any seller. You will have a difficult time finding a real estate broker to write a bunch of low offers as it is not worth their time. Best of luck!

@Bernard Weingarten I have always tried to surround myself with more intelligent people than myself for my investing business. That's not too hard (beat someone to the joke), but it really is important to have coaches or mentors that you can learn from. With that said I don't believe that you have to pay to get that service. Spend time at your local real estate meet ups, find investors online or in your area that are doing the things that you want to do in business and see if you can assist. I hounded a local investor in my area for quite some time until he allowed me to ride around with him to his projects. This one connection gained me a ton of knowledge that I gleaned from him, and continue to learn, and also kicked off several business ventures with him as well. Again, I'm sure there are investors in your backyard that would be a great resource for you and your business. 

As far as turnkey providers, there are many solid operators across the nation, and also several shady companies. Turnkey investing is a great option, but you do need to be aware and educate yourself on some potential pitfalls. Happy to assist if you need further.

@Ian Akash Morrison all this depends on your investing goals. Start with educating yourself on real estate investment options. Turnkey is a great way to create passive income, but there are several pitfalls to be aware of in that industry. There are opportunities in many markets across the nation, but I would disagree with Linda on buying the cheapest turnkey option out there. The cheapest rental will bring the least desirable area and tenant, and over time this will eat into your cashflow for certain. There are still many affordable options out there, you just need to be informed. Happy to assist if you need more info.

@Zo A. @Wes Blackwell did a great job of mentioning turnkey options and the potential dangers of this type of investment. He nailed it on the head with the mention of some horror stories from investors that were taken advantage of. Education is key when dealing with Turnkey properties, as there are some pitfalls to be aware of. I would avoid any operator that does not own and operate their own property management company. The disconnect is where turnkey rentals fail a lot of the time. We work with investors in over 14 different markets, I'd be happy to assist if you need additional information. Best of luck!

David Bernhard Russ Draper is absolutely correct that your relationships are key to your investment. There are many opportunities across the nation for investors looking to get involved with turnkey rentals. We work with over 14 providers in each market and I would advise you to seek someone who will provide the education in the pitfalls of turnkey investing. I'm happy to assist if you need any recommendations.

@MarieChele Porter and @Matt W. what is your investment strategy for out of state? Are you looking for turnkey properties or fix and flip opportunities. If turnkey, are you targeting a specific price point?  Each market will obviously yield a varying opportunity for success depending on your plan. In Jackson MS you can find TK homes from $45-60K in decent areas. Indy, KC, OKC, Memphis, AR, AL, you can find them in the $80K range. Our partners on the ground in all these areas own there property management companies so nothing is outsourced for you property, this is key! There's shady operators out there, education and fantastic relationships are key when investing out of state. One area that I don't see mentioned often on BP is Oklahoma, and particularly Oklahoma City and just north in the town of Edmond. We have been flipping homes in that area and doing quite well. There is a fantastic turnkey opportunity for new homes in OK as well, stretching down into Texas. Our partner in Philly does "Prehabbed sales" so you have equity on the back end to assist in freeing up your down payment. Lots of opportunities, solid relationships again are the most important! Happy to assist if you need additional information.

@Ben Clark welcome to Bigger Pockets! As @Meghan McCallum said you can accomplish every investment goal you set out in your post. The key is strong partnerships and providers you trust and have long track records. Many opportunities across the nation depending on your goals. If your looking in your backyard I've got a contact if your looking for proven operators. Be happy to assist if you need more information. Best of luck!

@Kennith Osborne great job on doing your homework prior to jumping into the game. If your going to be investing in your local market I would recommend you find and manage your own rentals. The ability to buy rentals that will have equity, and you'll be able to learn the ropes in property management. This will save you 8-10% in management fees. All of this assumes you have time and the desire to seek out your own investment properties. If not, I have a good reference in Nashville and also Little Rock if you like. Best of luck!