Q: Who are you?
A: Founded in 2003, We’re a premier real estate investment firm providing investors with quality, rent-ready investment properties in markets with affordable housing and high rents throughout the United States.
Q: What is your definition of a “turnkey” investment property?
A: A turnkey property is located in a stable market in a desirable neighborhood. A turnkey property is in good shape and already has a paying tenant, offering great monthly cash flow. A turnkey property is also professionally managed so you never have to lift a finger. You just collect the checks.
Q: How do you select your markets?
A: We select markets based on a number of factors. At a high level, we consider economic factors that include job growth, unemployment, population growth, as well as the condition of the local housing market (inventory, price trends, etc.). We are market agnostic – which means we select our markets based on local economic and housing factors. We do not select markets based on fads, investor demand, or “sex appeal”. Markets must make sense from an economic and investment perspective.
Q: Do you manage the properties for clients?
A: We have professional local property managers that manage the property for you. We provide the initial due diligence on the property managers, as well as ongoing oversight and diligence on their performance. You are not obligated to use these property managers and are free to change them at any time. Their job is to take care of everything related to the property. The only thing you have to do is pay the property taxes and insurance every year and check-in with the property manager from time to time. The tenant takes care of day-to-day maintenance (mowing the lawn, etc.) and the property manager deals with collecting rents and arranging for any repairs that are necessary.
Q: Can you help with financing my investment property?
A: Unfortunately, we can’t accept financing. Due to the fact that all of our properties are $60k or less, conventional financing is very hard to obtain. This is because IRS regulations require all loans to SDIRAs to be non-recourse loans. All of our properties must be purchased with cash or funds from your retirement account (IRA, 401k, etc.)
Q: How do I fund my SDIRA account?
A: There are a few different options to fund your SDIRA account:
Q: What makes your company unique?
A: We do extensive research on over 400 U.S. markets, always looking for the next gold-mine market. We strategically select our markets based on local economic and housing factors, not fads or investor demand.. In fact, all of our clients breezed through the 2008 housing market crash. We also provide our investors with unbiased counseling and advice. Our founder is a best-selling author and he’s been an investor for the past 12 years so he knows this business inside and out.
Q: How do you select your team of professionals?
A: From the initial screening of our service providers, to the ongoing positive experiences of our clients, we build and maintain a network of professionals eager to help you succeed. That’s our “Investor Network”. And if we receive a complaint from our members, those professional are investigated and removed from our Investor Network.
Q: Do you invest in real estate too?
A: Of course. Our founder, Brian Bagnall, started investing in real estate at the age of 22 starting with a single condo that he bought, renovated, and sold himself. He has continued building his real estate portfolio over the years.
Q: If your properties are such a great deal, why don’t you keep them for yourself?
A: Many times, potential investors question us as to why we aren’t keeping these great properties for ourselves. The truthful answer is that we don’t have the capital to do so. Every turn key rental we buy is one that we would keep for ourselves if it came down to it. However, as we’re a growing company, we need to continually sell these excellent deals onto our investors so that we can build an even bigger base of properties, clients, and connections.
Q: How does your company answer the concerns of investors investing outside of their own state?
A: We have specifically tailored our business practices to assist investors who either invest outside of their own state or are too busy in their daily lives to invest without assistance. We have put together a program where an investor has access to all of the needed services to make your investment a successful one. From the closing attorney all the way to the bug guy, our staff has every service imaginable ready to go to work for you.
Q: Can I talk to your clients or referrals?
A: Absolutely! In fact, we would hope that you would speak with our clients. In our years of business, we have never claimed to do everything perfectly and we are capable of making mistakes. Yet, we strive to set ourselves apart by promptly and accurately fixing mistakes and dealing with all of our clients in an honest, ethical and fair manner. That commitment to customer service has allowed us to grow and prosper along with our clients and has helped us forge relationships for life! Because our clients are busy, we ask that you make checking with referrals the last step of your due diligence process.
Q: Why should I work with you instead of a less expensive alternative?
A: We always advise our clients to never equate price with value. In our years of experience, we have found lower priced homes and lower priced companies are usually accompanied by more headaches, deferred maintenance and lost cash flow over time. We began to separate ourselves from other alternative investments by concentrating on higher value homes, more extensive front end renovation and a dedication to customer service. So while our price point might be higher, the quality of the investment and the experience of the investor are both unmatched by any other company. We aim to provide the highest value possible for our clients over the life of the investment.
Q: Are there still opportunities in today’s real estate market?
A: There are absolutely fantastic opportunities available today for real estate investors. Whether just getting started or trying to grow your portfolio, today’s real estate market has many solid investment opportunities available. Having a thorough understanding that there are multiple markets and sub-markets within each city, will help you to navigate and uncover the best opportunities that each city has to offer.
Q: Will I have to pay any taxes on my earnings?
A: When you buy with a SDIRA, your earnings are tax free like earnings from any other IRA investment. When you buy with cash, your earnings are taxable in the year in which they are earned but you get the benefit of claiming depreciation.
Q: How do I sell a property owned by my IRA?
A: When you’re ready to sell a property that’s owned by your SDIRA, the SDIRA custodian will sign all the documents once you have approved them. Once the property has been sold, all funds from the sale are deposited into your IRA.
Q: Does the SDIRA company charge fees to manage my account?
Yes. The fees vary based on the assets in the account but for an account with a value of around $100k, it is about $500 per year. Don’t let this shock you. If you look at your current IRA/401k statements, odds are you are paying much more in management fees and other hidden fees.
Q: Can my spouse and I pool our retirement money to buy properties?
Yes, as long as those funds can be transferred to a SDIRA. You would both need to have your own separate SDIRA but you can split ownership of properties (example: Your retirement account can own 30% of a property and your spouse’s retirement account can own the remaining 70%).
Q: Is money set aside for repairs and vacancy?
A: A 12% vacancy and repair allowance is already worked into the return calculations. Vacancy is extremely low with our properties because we have great property managers. Tenants are required to give 30 days notice of move out. Upon receiving notice, our property managers immediately begin advertising the property for rent and showing the property to prospective tenants (while it’s still rented). This way, we can often have a new tenant in the property within a few days of move-out (after completing a deep cleaning and fixing any repairs). This keeps vacancy to almost zero.
Q: Are your homes inspected by a licensed home inspector.
A: The quick answer is no. BUT they are inspected by our in-house rehab team which is just as good or better than a licensed home inspector. These are the same guys that are tasked with making any repairs to get the property rent-ready. Let me ask you a question… when’s the last time a contractor showed up at your home and saw something that needed to be done and didn’t put it on the bid? Of course, never. A contractor is paid by how much work there is to be done and that’s the case with our guys too. During their initial inspection, they literally tear the house apart and look in every nook and cranny to find anything that needs to be repaired. It’s also worth mentioning that we don’t buy 4 out of 5 houses we look at because it doesn’t meet our standards or pass the inspection. And you’re also protected by our 30 day warranty. If we did happen to miss anything on the inspection (hey, we’re not perfect), we will cover the cost of labor and materials for 30 days after purchase. You, however, are also more than welcome to have an inspection done at your own expense.
Q: Do you get appraisals on these homes?
Because we know each market that we work in intimately, it doesn’t make sense to spend $400 on appraisal for each of the dozen houses that we buy and sell every month. That adds up quickly. Zillow is a free online tool that is usually a great way to check values in the neighborhood. You, however, are also more than welcome to have an appraisal done at your own expense.
Q: What is your BBB rating?
A: We don’t have one. (Believe it or not, this is actually a good thing). Most people don’t know that the BBB is actually a private organization. It has nothing to do with the government and it actually makes money by selling memberships. Buying a membership is one way you can end up on the site. The most common way that you get listed on their site is for someone to complain about your or your business. We don’t have any complaints, so we’re not listed. That’s why this is a good thing. You can see more info about this here.
Q: How do I get my funds?
The property manager collects the funds from the tenant, takes out their 8% property management fee, and then forwards the rest to your SDIRA directly or via check/ACH to you if you paid with cash. The allocations for property taxes, property insurance, and 12% vacancy/repair reserve are forwarded to you directly.
Q: How can I be assured that everything is on the ‘up-and-up’ and that I will 100% own the property?
All of our deals are closed through a licensed and bonded title company. The are an independent third-party that facilities all of the moving parts of a real estate transaction so that all parties are protected.
Q: Are your deals listed on the MLS?
No. Our deals are not available to the general public. They are only available to our private clients and properties are hand-picked for our clients based on their needs. Our inventory changes hourly so it would be hard to keep an up-to-date list of properties on our site.
Q: Do you guarantee the returns listed on your site for each property?
A: No. And we try to always make this as clear as possible. Nobody can legally guarantee you any kind of returns on an investment. If they do, they’re breaking the law. However, our numbers are based on incomes and expenses which is a lot more straightforward than hoping and praying a stock or mutual fund will rise in value.
Q: What are the areas like where the properties are located in?
These are blue collar areas. These are areas where entry level cops, fireman, and teachers live in. They may not be areas that you or I would live in, but they are safe and far from “war zones.” The areas are undergoing redevelopment and are on the rise. These are the types of areas you want to invest in.
Q: How much does it cost to work with you?
A: Nothing! You do not “join” our website or pay for the right to view our properties. Our companies provide access to fantastic investment properties that, when you add all of our value added services to the process, allow you as an investor to save time, money and energy. This access is provided free and you as an investor are not asked or required to pay our company any fees for the opportunity to do business together.
Q: What is required to lock down a property?
A: All we need is a $1k deposit per property on a credit card and a completed purchase agreement. We make everything as simple as possible.
Q: What’s my NEXT STEP?
A: Contact one of our Investment Councilors to ask any questions, or to discuss your investment goals. We are here to help you build your wealth and cash-flow with our turnkey real estate investments.