The Wealth Elevator Podcast: Real Estate, Taxes, Investing

SPC015 - 9 Turnkey listener questions (Part 1) Hosted on Acast. See acast.com/privacy for more information.

The turnkey world was explained in this previous post. If you are going down this passive investing path, here are some questions to ask. This is not an interview, but simply a conversation starter. Use the salesman to educate yourself and exercise your BS-Detector. A lot of people ask me who the people to work with are. I am afraid for those who think like that because they will not go through this important education phase. Can you break down the structure of your company for me? (Let them explain) Tell me how your process works from start to finish? (Let them explain) What does “turnkey” mean with your company? (Let them explain) Do you own properties close to the one you’re selling to me? (Determine if you are working directly with the TKP or middleman) Will there be a tenant in place before I close on the property? (There are pros & cons) Can I use financing to purchase the property? What happens if my financing falls through? (Determine if you are potentially overpaying) Is the home required to pass inspection and appraisal before I close? (Determine if you are potentially overpaying) Can I hire my own appraiser before closing on the property? (Determine if you are potentially overpaying) Do you use other companies to help you provide turnkey properties? (Understand where their deal flow comes from) What is your role in the sale of the turnkey properties? (Get a sense of the size of their operation, are they the sales guy, rehab guy, or everything?) Who are the “boots on the ground” in these areas? (Are you talking to the actual guy who manages the crews or just their sales person who never leaves the office) Who owns the homes? (Understand where their deal flow comes from) Who rehabs the homes? (Clarification on the buying process) Am I expected to pay for the rehab? (Clarification on what you are buying) Who manages the properties after the sale? How long have you been in business for? Is there a warranty on the property after the sale? (Beware if they provide vacancy assurance or warranties on work. They sound good but the provider could just be covering their work with a 3rd party insurance company) Can I see a scope of work with expenses for one of your rehabs? (Check out markups and what is fixed) How many properties are generally in your inventory month by month? (The more properties means better economies of scale but can also mean more bloat and more competition from other buyers) What sets you apart from other turnkey companies? What are some mistakes you make when you started out, and how are you doing those things differently now? Do you invest? If so what?SPC Git Er’ Done Action Plan: Make a list of Turnkey providers, markers, agents to have a conversation with. Send out emails to providers and schedule discussions. Get on the phone, learn, and exercise your BS-Detector. Email ([email protected]) me a screenshot of your iTunes review and I will send you the spreadsheet with some of the most popular Turnkey Providers to start your call list. Hosted on Acast. See acast.com/privacy for more information.

Guest on Joe Fairless Podcast, how I got started, and a bit about turnkeys and trench drains Hosted on Acast. See acast.com/privacy for more information.

Learn how/why I got out my high priced Seattle (Appreciation) market and into 9 Properties In 5 Months Via 1031 Exchange Hosted on Acast. See acast.com/privacy for more information.

The Warning Label For Passive Investors When On The BiggerPockets Forums Hosted on Acast. See acast.com/privacy for more information.

How To Hack Real Estate With Abundance Mindset. Hosted on Acast. See acast.com/privacy for more information.

Essential Real Estate Books And Business Books Hosted on Acast. See acast.com/privacy for more information.

Are you aware of Cap-Ex or Capital Expenses the big unknown in your deal analysis spreadsheet. Learn 3 ways to calculate Cap-Ex... So You Don't Get Screwed a Year Into The Future Hosted on Acast. See acast.com/privacy for more information.

Learn about the ROE or Return on Equity Metric and how it determines when you should sell and re-position your investments. This is the most common way I see Mom & Pop Investors Fail. Hosted on Acast. See acast.com/privacy for more information.

4 not so obvious things to think about for planning your end game strategy - and a little fun Hosted on Acast. See acast.com/privacy for more information.

Learn the Turnkey Rental players. How to buy one. Hosted on Acast. See acast.com/privacy for more information.

The introduction to the podcast. Who is this podcast for lazy... people who can't read. Hosted on Acast. See acast.com/privacy for more information.

Aloha my name is Lane...I help people get into real estate rentals by journaling about my experiences at simplepassivecashflow.com and the "Simple Passive Cashflow” radio show that I host on Google Play/iTunes.Podcast links:Google Android Phones: https://goo.gl/app/playmusic?ibi=com.google.PlayMusic&isi=691797987&ius=googleplaymusic&link=https://play.google.com/music/m/Iwlprtpxn4qim36w6buokzgg6ha?t%3DSimple_Passive_Cashflow_Podcast Apple iPhone: https://itunes.apple.com/us/podcast/simple-passive-cashflow-podcast/id1118795347?mt=2 What are you currently working on? I am always looking to connect with another investor.I invite you to check out my website & podcast: www.simplepassivecashflow.com Take a look at the first 12 foundation podcasts and If you would like to chat, setup a call here: https://calendly.com/simplepassivecashflow/20/ I created a "Think Outside the Cubicle" 10-Course Pack with access to spreadsheets, mindset tips, networking offers, and deal-flow access! Value-add for even the experienced investor! You are welcome to join: https://simplepassivecashflow.activehosted.com/f/1 A little more about me:I am a full-time Civil Engineer whole investing passively in Real Estate from Honolulu, Hawaii. I currently have a 11 single-family home portfolio with experience in Seattle, Birmingham, Atlanta, Indianapolis, and Pennsylvania. My multifamily porfolio consists of 413 units in OK, TX, and WA.My parents got screwed with the 401K and stock market and it's my mission to get everyone out of that "garbage!" I used to own three rentals in Seattle but after 2012 when the prices got too high that realized that sophisticated buy and hold investors invest where the numbers make sense with cashflow not appreciation (gambling). I buy 100k homes for blue-collar working families that rent for 1000 dollars a month that more than pays for all repairs, vacancy, insurance, professional property management, and capital expenses. "Quick Bio"Lane Kawaoka, P.E.Residence: Honolulu, Oahu, HawaiiEducation: BS Industrial Engineering, MS Civil EngineeringProfessional: 2007-12 BNSF Railway (Construction Supervisor), 2013-2015 BNSF Railway (Project Engineer), 2016-Current City of Kirkland (Project Engineer)Investing experience: 11 Single-family homes (AL, IN, PA, GA) Downloadable full bio: https://drive.google.com/open?id=1DZMw4rZFwyS-8cDsGovGeonwQ8Q9nM7Y5UgI9jZ4IW8 Hosted on Acast. See acast.com/privacy for more information.

Rent-to-Value Ratio (More info - http://simplepassivecashflow.com/podcast-3-rent-to-value-ratio/) Hosted on Acast. See acast.com/privacy for more information.

Should I Buy All-Cash or with Leverage? Hosted on Acast. See acast.com/privacy for more information.