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Eman says

by connecting clients with out of state (OOS) turnkey providers.

What is a turnkey provider?

Eman says

The plan has been working…..until it doesn’t of course.

Those are fantastic numbers!

Well, if CA goes from Facist to full Commie with your skills you could make that work in any state in the union. For that matter, from what I've read that strategy works in virtually every nation on the planet.

WineHorror1 says

Eman says

by connecting clients with out of state (OOS) turnkey providers.

What is a turnkey provider?

Turnkey providers are people who sell old housing stocks in rough and declining neighborhoods to the naive, unsuspected folks in the expensive markets, who are chasing faux cash flow.

In general, there are more bad turnkey providers than good ones. Turnkey houses tend to sell above appraised value so investors are in the hole from the get go, but they’re buying for cash flow so who cares right? Well, the tenant profiles are bad to begin with and they don’t treat your property with respect so every time they move out or getting evicted, your property is destroyed. You would spend so much money fixing it up. All your faux cash flow is gone and more.

There are a ton of them on Biggerpockets looking for fresh meet. There are a few brokers in the Bay Area as well as SoCal who would throw you to these turnkey shysters and collect their outrageous commissions. We’re taking about 5-8% a pop.

FJB says

Eman says

The plan has been working…..until it doesn’t of course.

Those are fantastic numbers!

Well, if CA goes from Facist to full Commie with your skills you could make that work in any state in the union. For that matter, from what I've read that strategy works in virtually every nation on the planet.

FJB says

Those are fantastic numbers!

Well, if CA goes from Facist to full Commie with your skills you could make that work in any state in the union. For that matter, from what I've read that strategy works in virtually every nation on the planet.

Thanks. Anything is possible. We all make bets and live with the consequences.

People actually told me that. If I could make it in the Bay Area, I should be able to make it elsewhere. I hope I don’t have to move from the Bay Area. Life is great…except the politics, intolerance and homelessness are getting crazy around here.

Eman says

Turnkey providers are people who sell old housing stocks in rough and declining neighborhoods to the naive, unsuspected folks in the expensive markets, who are chasing faux cash flow.

Caveat emptor

The formula for the Bay Area is pretty good. Once you got it figured out, you no longer wanted to go out of state and chase the faux cash flow.

We’re grossing $1.7M on our apartments. An average 3% annual rent increase = $51k/year. Let’s say $15k goes to pay for the increase in expenses, we net $36k/year. $3k/mo can service $600k. We also get $250k/year in principal pay down. This is how we have been able to extract $500-$800k/year in cash out refinance (tax-free) and use the proceeds however we see fit. Then rinse and repeat.

Onvacation says

We're all going to die and all have to pay taxes.

That second part is made up by government. There was not direct tax on income for over half our countries existence.

Onvacation says

Without making any definite predictions I don't think it can last more than a couple more centuries.

You are aware the world used Silver until the late 1800's, and gold until the early 1900's to back it currencies. With some small regulation between banks extending to the 70's. So the current system has existed for less than 100 years. Feel free to look back in history for any 100% unbacked fiat system that's lasted longer.

The arrogance or ignorance in assuming things have always been as they are in our time is the biggest reason people are caught in catastrophe. Not intending to insult anyone, but this is fact, something we must always be on guard against.

CA is driving me out of the flipping biz. It’s always someone else’s fault, not theirs. What a loser mindset.

https://www.cbs8.com/article/news/local/new-ca-bill-would-impose-25-gain-tax-house-flippers-sell-within-3-years/509-557ac4de-8125-422e-beb3-8162972ef5e0?source=patrick.net