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All Forum Posts by: Tom Chen

Tom Chen has started 1 posts and replied 5 times.

Post: Newbie question regarding out of state invest

Tom ChenPosted
  • Investor
  • Bay Area, CA
  • Posts 5
  • Votes 7
Originally posted by @Ali Boone:

I'm a little late to the thread, but thought I'd throw a couple things in. This may have already been said, but people don't typically use agents with turnkeys. The turnkey providers are usually agents themselves, and investors don't really use a buyer's agent. If you work with a turnkey marketing company, rather than directly through the provider, they will unofficially support you in all the things an agent would--contracts, going through the inspection, etc. While they don't legally represent you, they offer support through the whole buying process. I do this for people all the time (I've been buying turnkeys since 2011).

As far as actual properties, I don't know of any turnkey providers in NC, SC, or MN. What about those states is of particular interest for you? For inspections, not only do all of the other companies allow 3rd party inspections, it's recommended you get one and assumed that you will get one. If anyone didn't allow that (which I've never heard of), I'd definitely consider that to be a red flag. Company recommendations-wise, I run a turnkeys Facebook group and there's tons of discussions in there about all the different companies. I could give you my personal recommendations and thoughts on companies, but it's all covered in the group too... if you're on Facebook.

Hope that helps!

Really appreciate the detail explanation! It's really useful!

Sent you a DM hope to connect!

Post: Newbie question regarding out of state invest

Tom ChenPosted
  • Investor
  • Bay Area, CA
  • Posts 5
  • Votes 7
Originally posted by @Brandon Sturgill:

@Tom Chen Why turnkey?...you'll be better off linking up with a PM that can handle renovation work...

Turnkey sounds like a good plan for hands off, but it's not any different from working with a good PM...

 Thanks Brandon! 

Good point, It's just I'm out of state. And I'm having trouble to find a reliable buyer agent + pm combination, I see not all pm provide buy/sell service(not sure if this is true) , so it would be hard for me to locate my desirable property, so I go down the easy route.

Post: Newbie question regarding out of state invest

Tom ChenPosted
  • Investor
  • Bay Area, CA
  • Posts 5
  • Votes 7
Originally posted by @Aj Parikh:

Nope and I don’t intent to either. I did my homework before buying them and I am able to manage the property managers through email and phone so I am happy with that. My whole intention of buying out of state was to create passive income and not another job for myself :) 

 That sounds exactly what I'm looking for! Hmm I'll defenitely looking into the Martel Turnkey.

Post: Newbie question regarding out of state invest

Tom ChenPosted
  • Investor
  • Bay Area, CA
  • Posts 5
  • Votes 7
Originally posted by @Aj Parikh:

Welcome to BP Tom!! Listening to the podcasts, getting books and ultimately coming to these forums is the best way to learn in Real Estate. I have also been on the same journey since 2019 and decided to explore out of state investing in 2020. I read David Greene's Long Distance Real Estate investing and decided to join a Mastermind group. Both those steps eased me into Out of state investing. 

I worked with Martel Turnkey to purchase a SFH for 90k in Cleveland, OH and its cash flowing close to $300 / month. Its not in the criteria you have but just another option to explore. Also, I purchased a SFH with Roofstock in Memphis, TN for 70k. Let me know if you want to connect and chat about the purchase process on both of those.

Thanks for the reply Aj!

Just out of curiosity, have you ever set foot on those property you bought?

Thanks

Tong

Post: Newbie question regarding out of state invest

Tom ChenPosted
  • Investor
  • Bay Area, CA
  • Posts 5
  • Votes 7

Hi BP's

New to the site and REI. Really amazed by the useful content in the forum.

I have been doing approximately a month research on REI now, including read through the posts/listen to the podcast etc...

Now I'm looking to buy my first rental properties.

I'm looking for an out of state "turn-key" property, I'm not looking for any exceptional or even great deals at the moment. (good is enough :))

I understand the ROI won't be that good for these kind of properties due to the fact that you put a lot burden on others and they'll defenitely make money out of it.

I'm expecting to start with these less involved investments and then dive deeper in future.

My current condition and expectation:

1.Approximate 80K cash in hand

2.Looking for SFR/Duplex under 300K

3.Expect cap rate 5%

4.Hopefully becoming an accredited investor soon (Making>200K about 1.5 year ago)

5.Out of state investing.

6.Understand  cash flow and appreciation usually contradict each other, so weigh more on cash flow instead of appreciation. target $250/month

7.only B+ neighborhood, current interested in NC,SC,MN, but open to all other states.

My questions:

1. I see platforms like roofstock,homeunion, rent to retire and those local Realtor company both provide some what kind of "turn key" properties. 

I see roofstock allows 3rd party inspection but not sure if all other companies/platform allow it? I'm assuming if a company/platform doesn't allow this, it would be a red flag right?

2. I assume if I'm buying properties from the TK company(not roofstock), they actually act like dual agent right? Or I can actually have a buyer agent represent me in this case?

3. If the TK company act as a dual agents,  any way I can hire a 3rd party experienced agent go through the inspection report together with me? How much does this usually cost?

4. If I can have my own buyer agent, what would be the best way to find someone local?

4. Any TK company recommendation?

Open to all kinds of feedback, thanks in advance.