All Forum Posts by: Account Closed

Just to piggy-back off OP's post, what about for unsecured personal LOCs? Is something that is typically done in FL? Of course, if I have a substantial amount in liquidity then I would not be asking for an LOC. The purpose would be for rehab. I figured LOC rates are better than HML.

@Amit Kumar I would also like to do an out of state (country in my case) BRRRR. It's definitely a major challenge setting up the right team.

@Jo Chan sounds like you've accomplished a lot since you posted. I'm just a bit confused, have you switched to PM and are now looking for deals for your investors? Or are the deals for yourself then you self manage?

@Brandon Henderson Sarasota is beautiful, definitely one of the best beaches in FL. I'm not familiar with the market there, but I'd be very interested in learning how things are over there. I'm originally from Miami and now living abroad and I'm also trying to determine which Florida markets to invest in. So far Tampa and Jacksonville make the most sense for me since I'm looking for fix, buy and hold. Orlando is another one to keep an eye on.

Hey @Brandon Henderson it sounds like the BP community has spoken. Cash out and you have a solid starting advantage in FL. Where exactly are you planning on moving to in Florida? And what market are you looking to begin full-time flipping?

@Sabrina Brown I've spent a couple of hours reading through the entire thread and can't thank you enough for being an unfortunate, but valuable example for investors looking to purchase OOS TKs. I'm glad to hear in the end you were able to come out of this situation.

@Jay Hinrichs has hit the nail with exactly what I've recently been looking for. I've already determined that profit is lost on TK purchase, but turnkey light helps an OOS in the same way a traditional TK would with a better cash deal.

Sabrina, if this is something you will be willing to consider in the future I believe it can turn out nicely for both parties.

Thanks for your reply @Antoine Martel. I find it difficult finding and establishing teams on the ground while just starting out and especially being out of the country. I guess that's why I'm looking for other alternatives. I figured if I can find a reputable turnkey provider it would minimize my risk since they have the experience are constantly doing these rehab projects. So instead of buying a traditional turnkey property (one that's fully rehabbed with a tenant in place) I'd buy pre-rehab (or 'pre-sell' as you mentioned) and let them do their normal operation of rehab and tenant placing. I would expect the property to appraise since they are selling other traditional turnkeys that have appraised for similiar prices and then I'd refi to pull most of my cash out. I believe through this turnkey wholesale I'd ultimately be paying about a third to half of a traditional turnkey retail price after cash-pullout which ultimately extends the purchase power of my cash. I am a US citizen and can travel back to the states when needed.

I understand it would not make sense to you since you have established ground teams. However, since I'm just starting out I think it'd beat paying retail. Are there any risks I'm not properly assessing?

Hi! I've recently found out there are some turnkey providers that do turnkey wholesale, or turnkey light, where the investor purchases the property at the distressed stage and the turnkey provider then rehabs and manages the property. Since I'm looking to invest from abroad this greatly appeals to me since I'd have to only vet one provider instead of an entire team of people and I would have my 'boots on the ground'. I believe the biggest benefit of this would be the forced appreciation through the rehab you otherwise would not benefit from when purchasing traditional turnkeys. Which in turn means you can refi and pull most of your cash out. I would like to know if such a service exists and if anyone has had any experience with this. Also, assuming it does exist, why would a turnkey provider offer this service when they can have the whole cake and eat it too while selling traditional turnkeys?

Thanks for all your help!

@Robin L. I've recently heard of the homestyle loans which would help fund the purchase and rehab. You would still need 20% down, but this way the rehab costs are funded. I'm not too acquainted with the reqs and specifics, so hopefully someone with more knowledge on this can chime in.

Hi @Nam Nguyen, I completely understand your question. I'm also getting started from abroad and had always thought I'd start with TK rentals. I figured it's the easiest way to get in and it would minimize risk (after doing your due diligence) since I'd have my own counselor guiding me through the entire process. After picking the right provider and the right property, you'd be cash-flowing with very little effort from your part. It's definitely a sound strategy for OOS investors and hands-off investing.

You ask if it'd make sense to buy with cash then refi and use the cash to purchase another, assuming 70-80% LTV the problem with this is that you're not forcing appreciation through added value and therefore, don't have the equity to be able to take all your cash out. So, in essence you could do that, but you'd still leave 20-30% of your cash in the property, which would be the same as paying 20-30% for the downpayment. If it's even possible to do 100% financing, the issue would then be if with 100% financing it can cash flow.

However, what if you can buy the property from the turnkey provider at the distressed stage? Using the same turnkey provider to rehab and manage your property, you would have the same hands-off expereince with one major difference. This time you (or the turnkey provider) would have forced appreciation on the property and in turn, now have the equity to refinance and pull nearly all of your cash with a 70-80% LTV. This is currently the route I'm investigating and hope to find reputable turnkey providers that do this sort of operation.