All Forum Posts by: Trevor Fleck

@Marilynne Poumele-Flores I do agree with others that the turnkey route may make sense for your situation. You're able to leverage someone else's vetted and proven network - this minimizes your risk. Personally, I'd focus more on the sunbelt where the population (and jobs) are growing. You'll set yourself up for a better balance of cash flow and likelihood of appreciation. I personally invest with Rent to Retirement and have been extremely happy with the results. https://renttoretirement.com  

Find a market you like and then compare the type of properties and deals turnkey companies provide in those markets. Talk to those turnkey companies about the market and you'll not only learn valuable information about the market, you'll quickly get a sense for which turnkey companies have a real command of the market and which ones are simply trying to make a quick buck. For example, I have 7 new construction build to rents going on right now in Cape Coral. Other turnkey companies offer properties in Cape Coral including ones mentioned above, but a quick comparison across price point, delivery time, sq footage, etc. results in a pretty clear winner. Happy to discuss further if I can be of any help. 

@Noelle B. I've had some pretty good luck in Cape Coral with the turnkey company Rent to Retirement. I've got 7 new construction build to rent projects in various stages of construction right now with the first one set to complete next month. I've found this strategy to combine good cash flow, built-in equity, and solid appreciation. For example, I purchased my first lot for $11k last February and was all-in for $238k including closing costs when I closed on April 1. At the time the rent assumption was $1,800 and the appraisal came back at $275k. Now that it's finishing up, I'm going to be renting it for $2,500 and the same model on similar lots is appraising for between $360-$410k. I'll do a cash-out refinance and basically will have engaged in a BRRRR of sorts or more of a BBRRR (Buy, build, rent, refinance, repeat). Happy to chat about my experiences if it would be helpful.

@Zac Bowden use a good document management service like Stessa. It's free and a great way to record all transactions on top of your closing documents. You can also pull reports at year end for your CPA. 

Congrats @Tasha Jones. Sounds like you've got some good equity to put to work. Aside from the usual advice about reading every real estate book you can get your hands on, engaging on BP, and connecting with local investors who are where you hope to be in 5-10 years, I think your next step is to decide on what asset class you want to invest in and where. These aren't small considerations. If it's overwhelming you may want to look into turnkey companies who have an existing network you can tap into and provide some "guardrails" that help mitigate some of the risk - particularly for those just getting started. While I live in Raleigh, NC for example, I invest in Cape Coral, FL through a turnkey company - Rent to Retirement. You may want to reach out to turnkey companies like this to begin educating yourself and learning about different options at your disposal. 

Hey @Nick Johnson where in FL are you investing? How is it going so far? 

@Manuel Villegas I'm a big fan of turnkey companies for newbies and those who are busy professionals. You tap into someone else's existing network where venders have been vetted, and the good turnkey companies also provide some level of guidance/mentorship to help you grow your portfolio in a way that works best for your life situation. I've personally had some really good luck with Rent to Retirement using the new construction build to rent model in Cape Coral, FL. I'd be happy to share my experiences with you if it would be helpful. 

@Brad Newton I'd second the endorsement of the Cape Coral market. I have 7 builds there currently with the first completing next month. I was in the market earlier this month and would be happy to share updated numbers of what I'm seeing if it would be helpful. 

@Marco Antonio Hernandez, I agree with @Allan C. - ask yourself what you're trying to accomplish with an LLC. Many investors think having an LLC magically protects them from lawsuits. It's not that simple. It depends on the state, how you operate your LLC, whether you use a registered agent, etc. Dave Van Horn writes a lot on this, but if your goal is to mitigate risk, consider an umbrella insurance policy and perhaps having someone put a second lien on the property so there is no equity to go after.

LLCs are often unnecessary and can have an impact on your loan terms as well (i.e., a lender will often provide better terms if they are underwriting you - backed by your assets - vs. your LLC which has nothing in it). Now some will close under their personal name and then do a quit claim deed of the title/deed to the LLC. You could certainly consider that.

@Bradley Rieger agree 100% with @Joshua Janus. It's sort of like negotiating online for a new car where you know the exact make, model, features, etc. that you want. You really don't care who gives it to you. So email a ton of lenders, tell them what you're trying to do, your rough credit score, and ask for a "good faith estimate" as well as a list of all lender fees (i.e., origination fees, appraisal fees, processing fees, credit score fees, etc.). Then once you have the best, email the rest and ask them to beat it. Many will try - they just have to have a competing offer so they can't be accused of engaging in discriminatory lending. 

@Maryann Navarro there are lots of turnkey options out there for sure. When I was in your shoes back in 2019, I ended up going with Rent to Retirement after a pretty exhaustive search and vetting process of turnkey companies and I couldn't be happier. 

I'd be happy to share my experiences and why I chose them over other options if that would be helpful. Feel free to message me directly if you'd like.