Why You Will Buy 10 Properties from Us

 

“I don’t want to sell you just one property, I want to sell you ten.”

– Lynn Martel, MartelTurnkey 

 

When searching for a turnkey rental company to work with, it’s important to make sure that you’re going to invest with someone who is diligent, thorough, and trustworthy. Because many people purchase turnkey properties in states they’re not actually residing in, it’s absolutely essential that the company you’re working with has a great reputation and is going to take every precaution to ensure that your new investment is in ideal condition when the transaction closes.

 

Unfortunately there are many turnkey companies out there that, metaphorically speaking, put lipstick on a pig. What we mean by that is that these companies – rather than take all precautions necessary to ensure your house is renovated correctly – will focus instead on doing things as cheaply as possible. Rumor has it that some companies do a bad job evaluating a home at the initial acquisition stage and then get stuck with unmanageable bills, so they have no option but to do substandard work and slap lipstick on a pig. Others are just greedy or have poor money management and they skip over important and more costly work. 

 

At MartelTurnkey we do everything we can to ensure that your property is in the best condition for a cash flowing turnkey rental property. We pay extreme attention to detail, make sure that all necessary repairs are made, and we are completely transparent and communicative during the entire process. Because of this, over the past few years, the majority of our clients have purchased at least two properties from us, and several have bought many more. Like I always say: “I don’t want to sell you one property, I want to sell you ten.” That means that we want to do things the right way so we can build customers for life.

 

In order to create the best possible experience for our customers, we focus on three things: going above and beyond for our customers, having third parties double and triple check our work, and remaining transparent through regular communication with our clients. Below is a breakdown of exactly how we are able to manage all three and why we have such a high client retention rate. 

 

 

We Go Above and Beyond 

 

There are unfortunately many turnkey rental companies out there that solely focus on money. By doing things as cheaply as possible, these companies are possibly able to achieve a higher profit. What these companies don’t realize though, is that this leaves their customers unhappy, and deters them from buying future investment properties with that company. MartelTurnkey is more concerned about maintaining a happy customer base than making a few extra thousand dollars. For instance, let’s say we have a $25,000 renovation budget, but the rehab bid comes back at $20,000. MartelTurnkey won’t take the extra $5,000 and keep it as profit. Instead, we will take that extra $5,000 and see where we can spend the money to ensure the buyer won’t have any big ticket items to fix in the future. We strive to ensure everything in the property has a significant lifespan, is operating safely and efficiently for the tenants, will provide the investor a reliable source of monthly cash flow, and that we’re not just, metaphorically, slapping  lipstick on a pig. 

 

 

We Have Third Parties Check Our Work 

 

This second fact check is really important for all of our clients, especially since the majority are purchasing turnkey rentals outside of their home state. For instance, if you live in Los Angeles and are purchasing a property in Cleveland, Ohio, we understand how important it is that you feel secure and can trust how we are managing the project since you are not physically in the vicinity of your turnkey property. In order to ensure this, you will feel confident knowing that we have not just one other party check our work, but FOUR independent professional companies. As an example, in the Cleveland area, several cities require a “Point of Sale Inspection”. Every single house we sell has to have a city inspector come out and inspect the house before it can be marked as completed. After this inspector checks the property, the property management company sends out a “quality control expert” who visits the property and reviews a checklist of items before giving their stamp of approval denoting that the house is ready-to-rent. And it doesn’t stop there. The third inspection is conducted by the bank’s appraiser who will evaluate the house and say what it is worth, taking into account the renovations and other factors.  Lastly, many of our first time clients hire a home inspector who will provide an in-depth report to the buyer. That means that there are FOUR independent professionals who go through the property with our client’s best interest at heart.

 

 

We Are Transparent and Regularly Communicate with Our Clients 

 

At MartelTurnkey, we don’t just want to sell you one property, we want to sell you ten. That’s why it’s so important for us to be transparent and honest with our clients and communicate regularly along the path to turnkey rental ownership.  Like any solid relationship, we find we face triumphs and challenges better together when we have established trust, and this is done through open communication. Because we own this business, and our reputation is of paramount importance to us, we are available 24/7 to answer our customers’ calls.  It’s really no surprise that more than 60% of our clients come from happy customer’s referrals. Our goal is to make sure all of our turnkey projects result in happy customers who will buy another house themselves, and refer their friends to us. Ultimately we want to sell all our investors 10 houses, and we work with that goal in mind. 

 

Purchasing a turnkey rental property can be one of the most exciting and satisfying experiences of a lifetime. That being said, it’s important to work with a company who understands this and prioritizes their clients’ happiness. At MartelTurnkey, we do everything in our power to make the property buying experience stress free, simple, and transparent. By remaining in constant contact with our clients, ensuring the properties they purchase are rehabbed and managed correctly, and having inspectors double and triple check our work, we are able to maintain our incredibly high standards. If you’re interested in learning more about turnkey rentals or would like to purchase a turnkey property, please don’t hesitate to reach out. You can contact us at info@martelturnkey.com. 

 

 

 

 

 

 

Leverage Your W2 to Achieve Financial Freedom Quicker

At MartelTurnkey, we believe that the quickest way to ensure happiness, independence, and continued financial success is to find a way to achieve financial freedom. That’s why we’re so passionate about helping our clients purchase turnkey rentals. By purchasing a turnkey rental, you’re giving yourself the opportunity to achieve financial freedom and generate passive income from a property that requires little to no maintenance on your part. It’s important to note, however, that in order to buy your first turnkey rental or your first investment property, you’re going to have to work with a lender. Traditional lenders such as Fannie Mae provide investors with a stable source of liquidity for mortgage lending, which “supports greater access to affordable home and rental housing finance in all markets, at all times” (Fannie Mae). In order to secure such a loan, however, you will need to have proof of income. And, the easiest way to do this is to present your W2 to a lender. Because using a W2 is the easiest and surest way to secure a loan, MartelTurnkey encourages all of our clients who do have a full-time job to keep that job before they decide to pursue a full-time career in real estate investment. By using your W2 to leverage financing, investors will be able to achieve financial freedom faster.

 

Preparing to purchase an investment property takes commitment, research, and patience. However, owning an investment property is well worth the hassle. At MartelTurnkey, we help our clients secure loans for their properties that they then use to purchase turnkey rentals with. And, as stated above, leveraging your W2 in order to secure a loan is the easiest way to get started in your investment journey. That being said however, it’s common nowadays for people to have non-traditional income that doesn’t fall into the W2 category. For instance, freelancers who work in what is referred to as the “gig economy”, business owners who take draws instead of paychecks, and people who are retired or have independent sources of wealth unfortunately won’t have a W2 to present to a lender. In these specific cases, investors are able to rely on their tax returns or, in some states, a Bank Statement Loan Program that looks – not at your W2s – but at your bank deposits for the last 12 to 24 months (CBC National Bank Coverage). Although these options are available for those without W2’s, relying on tax returns or the possibility of a bank’s Statement Loan Program may not always guarantee you a loan. That’s why, at MartelTurnkey, we encourage all of our clients who do have a full-time job to keep that job before they decide to pursue a full-time career in real estate investment. Quitting a full time job leaves potential investors without a proof of income, and in turn, they almost always have a much harder time securing a loan. As soon as you leave that day job and you don’t have those paystubs coming in, it becomes much harder to get financing.

 

If you do still have a full-time job, we suggest looking for a lender who will work with you in order to grow a scalable portfolio. Conventional lenders such as Fannie Mae allow you to use conventional financing on your first ten properties. That means that you’ll be able to take out ten loans on ten different properties. And, the good news is that if you get your first investment property using your W2, then properties two through ten will be even easier to secure loans for. The additional benefit of being able to take up to ten loans out at once is that you’ll be able to use the cash flow from your other properties to pay off one of your loans. So, for instance, if you have loans out on ten homes, you would be able to use the cash flow from those homes to pay off one property, and then secure one more property with conventional financing. After your first ten properties, you can start thinking about using hard money, asset-based lending, private lenders, or other creative financing deals to purchase future investment properties. However, if your W2 worked to secure your first loan, we recommend sticking with this type of lending. As the popular saying goes: if it ain’t broke, don’t fix it. 

 

So, what do you do once you do secure your first loan? We suggest getting started by buying a turnkey rental, or doing your first BRRR project out of state. That’s because these two options are relatively affordable, and will provide you with a stream of passive income, all while allowing you to keep your full time job. For those investors who are looking to scale their portfolios as quickly as possible, we still suggest using your W2 as leverage, especially on the first ten properties you purchase. We do not recommend using asset-based lending or hard cash lenders for single-family homes. For larger, multi-family homes these other methods are almost a necessity. Because of the more complicated nature of these loans, however, we suggest focusing on securing your first ten rentals with your W2 and then working on a plan to purchase a multi-family home after that. 

 

The biggest mistake we see people who get into real estate investing make is that they leave their full-time job to pursue a real estate investing career. We know how exciting it can be to begin your real estate journey, however, it’s incredibly important to make sure you have all of your affairs in order and enough proof of income to make this happen. By forgoing your W2, you’re leaving yourself in a much more difficult position, as your odds of securing a traditional loan immediately become much harder. If you are interested in learning more about our investment opportunities or are ready to begin growing your investment portfolio, don’t hesitate to contact us at info@martelturnkey.com 

 

3 Most Common Questions Asked By New Investors

The real estate industry is incredibly lucrative and offers a variety of opportunities for all levels of investors. Whether you’re a new investor, or a seasoned one, you’ll be able to find alluring opportunities that aren’t available in other industries. Because there are so many different investment paths and an abundance of resources readily available, getting started in the real estate industry can feel overwhelming for new investors. That’s why MartelTurnkey chooses to focus on selling turnkey rental properties. Not only are turnkey rentals some of the easiest investments to get started with, they also require very little maintenance and management on the investor’s end. For the new investor, turnkey rentals are the best way to get your feet wet in real estate. In order to help you out on your investment journey, MartelTurnkey breaks down the three most commonly asked questions of new investors, whom we speak with every day.

 

Can I Do What MartelTurnkey Is Doing, by Myself?

 

By far, this is the most common question we get asked.  While we don’t like to dissuade anyone from pursuing their dreams, most new investors don’t have the two main things required to do what we do: time and connections. Getting MartelTurnkey to the level we are at now, where we sell approximately ten turnkey properties a month, took a lot of time including hundreds of phone calls, numerous out-of-state visits, hours of migration and demographic analysis, all complicated with lots of trial (and some error). Over time we pulled together the trustworthy teams we now have in place. Strong relationships with our construction crews, project managers, property managers, escrow and insurance companies, and on-the-ground advisors, result in our ability to offer a cash-flowing, rehabbed turnkey property in a short time frame. It’s very difficult to manage all of these moving pieces at once, and the time required makes it much less feasible.  If you are determined to undertake an out-of-state rehab project, and you are in no rush to be cash-flowing, and you feel you can manage a project of many, many pieces, remotely, our advice is to achieve financial freedom first.  And the best road to financial freedom is by building a cash-flowing, turnkey rental portfolio.

 

Should I Finance or Pay Cash on My Investment?

 

The idea of owning a property for only $20,000 is very attractive to our buyers and most of them choose to finance the balance.  Sometimes, however, an investor will question if they should buy a property outright or get a mortgage. Before we give you an answer, a little more information is required.  If you are purely looking to maximize your cash-on-cash returns, then the best choice is to finance an investment property. On the 20% down, you will be making approximately 15% annually after fixed costs. So, if you are planning to retire 15 years from now, then we recommend that you use financing. On the other hand, if you are close to retirement and want to maximize your net cash flow, then it might be better to buy the property with cash. While the return will be less, percentage-wise, it will be heftier as far as monthly incoming cash. At MartelTurnkey, we often recommend financing to our investors, but we also like to understand your goals and situation so we can help you achieve them. On each property in our inventory, the related financials show you the numbers for both cash and financing scenarios. Be sure to take a look.  

 

Why Does MartelTurnkey Invest in Markets Like Cleveland and Memphis? 

 

With a statistician on our team at MartelTurnkey, we are continually analyzing migration statistics, demographics, housing prices and current events across the country in search of the best markets for our buyers. Cleveland and Memphis are two of the best markets we have found to invest in today. 

Memphis has a beautiful mix of historic and modern architecture. As a river city, it’s known as a booming transportation and industrial hub, and is home to the second largest cargo airport in the country as well as the FedEx Corporation Headquarters. Additionally, the city boasts more than ten colleges and several medical centers, both of which provide major employment opportunities for residents. Beale Street, Graceland, and the National Civil Rights museum bring thousands of tourists each year to the city. Housing wise, the median sales price is incredibly affordable, at $81,000. The average rent on our properties is also very affordable, around $750/month.  

Cleveland and its numerous bedroom communities check all of our criteria boxes as well. Home to a whopping TEN Fortune 500 Company headquarters, the city also brings world class medical teams to the area at the Cleveland Clinic, which is rated the second best hospital in the USA and employs thousands of people at its many campuses. Amazon’s presence is also continually growing, and continues to regularly open warehouses throughout the city. Home prices in Cleveland are slightly higher than Memphis, but we select properties bringing a minimum 15% ROI to our investors.  

 

Have more questions about real estate investing? Bring them to us. MartelTurnkey provides downloadable financials on any property and will review the cash vs. lending analysis with any potential investor. If you want to learn more or get started, simply book a call with an advisor at Info@martelturnkey.com

 

 

 

Single Family Rentals vs. Multi-Family Rentals

When it comes to investing in residential real estate, choosing between single family rentals and multi-family rentals is one of the most common decisions that investors will have to make. While some will argue for one over the other, at the end of the day, it really comes down to what works best for you and your investment goals. While single family rentals may appeal to less seasoned real estate investors because of the lower cost, multi-family rentals are popular amongst those investors looking for more cash flow, but who are also comfortable with taking more risk. And that’s because while multi-family rentals can be a great option for those who have more cash to spend, single family rentals provide for a safer, and less expensive investment. Below are advantages to both single family rentals and multi-family rentals. 

Single Family Rentals

 

1. They’re More Affordable 

A single family rental unit, also known as a “SFR”, is basically a home that is rented out. The simplicity of these units is what makes them such great investments for new real estate investors. They’re typically less expensive and also require a lot less capital upfront. For instance, in less costly areas of the country, new investors are able to find single-family rentals for as low as $100,000. MartelTurnkey caters to these buyers as most of our homes sell for $80,000 to $100,000. On the other hand, multi-family rentals, even in less desirable locations, could fall into the millions, depending on how many units the property has. 

 

2. Quicker Cash Flow 

Whereas multi-family rental units can take you at least six months to see some cash flow, single-family rental units from MartelTurnkey will generate cashflow within just one month. This is a critical consideration when we acquire distressed homes which we then rehab and tenant.  After fixed costs, our goal is to ensure that our investors are cash-flowing the first month. Additionally, there’s a very high chance that your property will appreciate in value over time, leaving you wealthier than when you first purchased the property. 

 

3. Easier to Sell and Manage

Single family rentals aren’t just easier to buy – they’re also easier to sell. And that’s because they’re available not just to commercial real estate investors, but also normal families. The barrier to entry is lower, and so is the barrier to exit. You’ll have more options to choose from when selling, as there are typically fewer buyers for multi-family homes. Additionally, because single family homes are a lot smaller, they’re infinitely easier to manage. Unless there’s a major issue in the single family home, they’re less costly to repair and replace anything that may need to be replaced. 

 

4. Growing Demand for Rental Units

Data from NAREIT, the single family rental has lingered around a 30 percent growth rate for the past three years, compared with less than a 15 percent growth rate for the multifamily market during that same period. That means that single family rental units are more popular than ever. And this is partly due to the fact that millennials are around the age where they are looking to purchase homes and start families. Real estate experts predict that the demand for single family rentals will continue to grow, so it’s a great opportunity to hop on the bandwagon. 

 

Multi-Family Rentals

 

1. The Rental Income Can Be Higher

Because multi-family homes have more housing units, and therefore more tenants occupying them and providing rental income, investors can generally earn more than they would on single family rental units. Additionally, if there are rent increases, you’ll be making more income as well. 

 

2. Loans for Two-to-Four-Unit Properties Are The Same As Single Family Rentals 

If you’re looking to finance a multifamily property with two to four units, there’s good news: these loans vary very little – or not at all – from loans for single-family homes. So, while two to four units are typically classified as multi-family units, they’re almost as accessible as single family units. After four units is when you need to take out larger, commercial real estate loans that are more complicated and more expensive than ones for single family units. Lending rates for rental properties are slightly higher than for your primary residence, but we are seeing very good rates these days.

 

3. You Can Live There

Unlike single family rentals that are limited in space, multi-family rentals provide investors with the ability to live in their property. Not all investors choose to do this, however, if you are looking to live within the property you own and are managing, this could be another plus. If you missed last week’s article on house hacking, read it here: https://martelturnkey.com/why-we-dont-love-house-hacking/

 

4. Economies of Scale 

Economies of scale are also known as reduced costs per unit. This typically comes into play if you’re deciding between purchasing multiple single family units or just one multi-family unit. For instance, if you need to make repairs on the unit, such as the roof, then you’d only have to invest in one roof that will cover all of the units, as opposed to having to repair multiple roofs on more than one single family rental. If you choose to hire a management company to manage your property, you’ll also only have to hire one to manage your multi-family unit.

 

When deciding to invest in a single family unit versus a multi-family unit, it’s important to note that both come with their own set of risks and rewards. However, if you’re a new investor, are looking for quicker cash flow, and want to deal with minimal stress, a single family rental is the best way to go. Single family rentals are more popular than ever which is a testament to their profitability and accessibility. At MartelTurnkey, we encourage our new investors to start building their real estate portfolio with single family rentals because of their many advantages. 

Why We Don’t Love House Hacking

 

When my wife and I were looking to buy our first home, we unfortunately found ourselves in a position where we were barely able to put enough down to purchase the home we wanted. We were looking for a home in Toronto, Canada and were determined to buy a home no matter how tight we were on cash. That’s when we came up with the idea that we would purchase a house with a basement and a separate entrance in order to house hack the property. That way, we’d be able to rent out that portion of the home in order to help us pay our mortgage and save up some more money.  Throughout the process of house hacking, we came to discover that it was not for my wife Lynn and I. While some people love house hacking, we both realized that the personal impact it had on us was not worth the amount of money we were saving. 

If you’re unfamiliar with house hacking, the concept is fairly simple: it’s an investment strategy wherein you are renting a portion of your house to someone else. It can be applied to multi-family rental properties, or your primary residence. For example, you could live in one of the multiple units of an investment property you’ve purchased, use it as your primary residence, and then use the money from other units you’ve rented out to pay your mortgage and other expenses. In single-family homes oftentimes the investor will live in the property and rent out a bedroom, basement or additional portion of the home in order to offset his mortgage and/or utilities. While house hacking is fairly easy to execute, however, it isn’t perfect. That’s why it’s important to weigh the benefits and the costs of house hacking before you jump in. Below are three reasons why house hacking can be problematic and why you may want to hold off before you decide to do it. 

 

1. Personal Impact

When you decide to house hack, you’re either living in the same exact home as your tenants, or right next to them. And that’s tough. You automatically have less privacy, especially if you’re sharing a home with a tenant, and your responsibility dramatically increases. That’s because when you decide to rent out either a room or unit that you own, you immediately become both the property manager and the owner. You’re responsible for any issues that arise with your tenants, so you’ll need to be accessible at all times in case there are repairs that need to be done or problems you need to answer to. Because of this added responsibility, house hacking can make your life a lot more stressful. Warren Buffett once said that investing is best when it’s businesslike, and when you decide to house hack, investing becomes much more personal. It’ll be more difficult to remain objective, as you’re not just managing a property, but you’re also living there. 

 

2.  You Have to Be A Landlord 

As stated above, house hacking can feel a bit too close for comfort since you’re suddenly living with or near your tenants. To make matters even more stressful, you’ll also have to assume the responsibility as landlord. And that means not just acting like landlord, but also legally being a landlord. You’ll have to do some research on your local and state laws when it comes to renting and make sure that you have a legitimate lease agreement that you can have your tenants sign and that will hold up in a court of law. It’s best to consult with an attorney to make sure that all of this is correct before you finalize your lease agreement. Additionally, because you’ll be acting as landlord in most cases, you’ll have to deal with the potential for a disagreement or possible evictions with the person(s) living with or near you. That’s why it’s important to select a tenant who you trust and will be compliant with your lease agreement. 

 

3. It Anchors You 

If you’re going to house hack in order to afford a property that you wouldn’t otherwise be able to afford, it may be a better idea to hold off and instead, buy a property you can fix and then flip. That’s why at MartelTurnkey, we suggest that if you do house hack, quickly move out so you’re not anchored to the property. After you do this, you can then rent an apartment and use the money you’ve made from selling what you house hacked in order to buy an out of state turnkey rental property. If you’ve bought a property in a location you’re not in love with, you may be forced to live there longer than you wanted to. If the numbers are good enough, this could be worth it. However, if multiple repairs are needed, you have to travel far for work, and you hate the area you live in, the cash flow on the property you house hacked really may not be worth it. 

 

While house hacking does have it downsides, it can be used positively in certain situations. Before you jump into house hacking headfirst, however, make sure you’re taking into account the cost of potential repairs you may need to make on your personal unit or those of your tenants. It’s also important to run the numbers to see what you’re looking at in terms of cash flow and potential profit. As mentioned above, if you are going to house hack, it may be a good idea to do it for a short period of time, then sell the house or property and use that money to buy an out of state turnkey rental. This will guarantee you cash flow with minimal work and a lot less stress. 

5 Real Estate Youtube Channels You Need To Follow

Thanks to the internet, we have endless amounts of information literally at our fingertips whenever we need or want it. That being said, however, because there is so much information out there, it’s difficult to discern what’s useful information from what’s not. When it comes to real estate, by doing a quick Google search, you’ll realize that there’s what feels like an endless supply of advice, tips and best practices in the industry from thousands of different “experts”. Which is why it’s important to narrow down what you’re reading and who you’re trusting in order to ensure that you’re getting the best information possible. Youtube just so happens to be one of the greatest resources when it comes to real estate education, thanks to a handful of experts who spend a lot of time creating videos packed with invaluable information. In order to save you some time sifting through real estate Youtube accounts, we’ve broken down the five most popular, and beneficial Youtube channels to follow. Below are five that each have their own specialties but that are all equally as engaging and informative. 

 

Graham Stephan

Graham Stephen has one of the most popular Youtube channels on our list with a whopping 2.47 million subscribers. And it makes sense why so many people turn to him advice. He’s a 30 year old who has a track record of over $120,000,000 in residential real estate sales, making him one of the best real estate experts out there. His Youtube channel has an array of videos – some of which talk about his personal journey in real estate, while others talk about his love of cars. Most of them, however, all share some sort of lesson he’s learned and how he learned it. His real estate videos tend to focus on remodeling and renovation, sources of passive income, real estate investment and the most beneficial real estate strategies. 

 

CHANNEL

Bigger Pockets 

BiggerPockets is a company founded by Joshua Dorkin in 2004 that is dedicated to helping people learn about real estate and how it works. The channel boasts a massive 612,000 subscribers who are sure to find any type of real estate advice they may need, whenever they need it. The channel offers content that covers every aspect of real estate investing from analyzing deals, how to find and finance properties, tips and advice, and so much more. And, unlike the other channels on the list, BiggerPockets features videos from an array of experts who specialize in different aspects of real estate. Within five minutes of heading to this channel, you’ll be hooked. 

 

CHANNEL

Grant Cardone

Grant Cardone is a businessman, investor, CEO of seven privately held companies and most importantly, founder of Cardone Capital, a real estate investment firm with $1 billion assets under management. Listed as “one of the top social media business influencers in the world,” by Forbes, Cardone is an expert when it comes to all things real estate investments. His channel consists of videos that contain book reviews, real estate advice, real estate hacks, and real estate lead generation. 

CHANNEL

Antoine Martel

One of the owners of Martel Turnkey, Antoine Martel, just so happens to have one of the best real estate Youtube channels out there. And that’s because he is an expert at a quickly growing real estate niche: turnkey rentals. Originally from San Mateo, California, Martel now owns turnkey rental properties throughout the United States and is passionate about helping others do the same. His proven real estate investment strategies have enabled countless clients realize passive income and financial freedom through out-of-state turnkey rental properties. Since its founding, MartelTurnkey, with Antoine Martel at the helm, has sold well over $11 million worth of cash flowing real estate. His Youtube channel is packed with years of real estate knowledge, interviews with other real estate experts, tours of turnkey rental properties, and renovations. 

CHANNEL

Eric Martel

Last but not least is Eric Martel, father of Antoine Martel, owner of Martel Turnkey and author of newly published book Stop Trading Your Time For Money. His channel is called “Break Away for The Rat Race” because it shows you how to do just that: quit your nine-to-five and start making money on your own terms. His videos are designed specifically to help the middle class break away from the nine-to-five rat race and empower them to pursue their dream career – in his case, real estate. His videos consist of inspiring interviews with a variety of real estate investors such as ex-football player, Jason Stewart; author of “One Rental at a Time”, Michael Zuber; and Fix-and-Flipper focused in Pittsburg, PA, Jessie Di Lillo, amongst others. His channel along with Antoine’s weave across generational boundaries. Whereas Antoine speak to the younger investor, Eric addresses issues that baby boomers tend to struggle with. Between Eric and Antoine, you’re guaranteed to get a master’s degree worth of real estate investing information for free. Similar to Antoine, Eric’s videos are full of substance, tips and tricks, analysis tools, and remarkable stories from everyday investors. Overall, he does a great job at demonstrating how to use real estate investing to achieve financial freedom, retire early and leave a legacy for future generations. 

CHANNEL

 

If you currently are in the real estate industry or you’re looking to get into it, all of these channels will provide you with an unbelievable amount of information on practically all areas you’d ever be interested in. Whether you want to learn how to become a real estate agent, broker a real estate deal, find the best investment property, or learn real estate lingo, any one of these channels is a great place to start. 

Book Publication Announcement

 

Eric Martel recently published his new book titled “Stop Trading Your Time for Money”. His book is a How-To guide for the middle-class to achieve financial freedom and leave a legacy for future generations. Eric believes that we are on the edge of a massive retirement crisis, that is not new, the movement to shift the retirement risk to then employees started decades ago. However the pandemic, the high unemployment, and the economic uncertainty will dramatically amplify its effects.

 

In his book, Eric shares how a typical middle-class worker can improve his/her financial situation with reliable investment strategies. The reader will also learn the key lessons about money that are not taught to most students. The reader will also be given tools and templates to get them started.

 

Get your copy on Amazon today.

 

Eric purchased his first apartment building at just 18 years of age while still at university. After graduation, in his position as an actuary, he was dismayed to see hundreds of company pension plans being rolled over into 401(k)s shifting the retirement risk to employees. This made him reconsider traditional beliefs about retirement saving. It also made him question his role as an actuary. A few years later he lost a fortune during the Dot com crash of 2001 and he started looking for ways to earn passive income and stop trading time for money. He eventually formed MartelTurnkey with his two sons. Now he wants to share what he’s learned with his book.

Investing 101: Invest in What You Can Afford

When it comes to investing, there’s one rule that’s more important than anything else: never invest money that you can’t afford to lose. It might be tempting to throw your newly hard-earned money into a real estate venture you’ve been dying to get involved with, but before you do, keep in mind that it’s important to have enough cash saved before you do. It’s easy to get ahead of yourself, so it’s important to start SMALL. The last thing you want to do is dump all of your hard-earned money into one investment strategy when you first begin investing (Match Investment Strategies With Your Goals). That’s why we’ve created this guide based on the amount of cash you have set aside. If you follow the strategies and guidelines listed below – and make sure you’re not investing before you have enough cash – you’ll be well on your way to making consistent passive income while building your real estate portfolio.

 

1. $0 – $20,000: KEEP SAVING AND LEARNING

While it may be temping to start investing in real estate once you’ve saved your first $10,000, try your best to hold off. Waiting until you have a solid $20,000 set aside will be greatly beneficial in the long run. While you build up your savings, be patient with yourself, and take the time to learn all that you can about investing in real estate. This is a period where you can gain all the knowledge you’ll need for your future endeavors. Just be patient and realize that it’s okay to not jump into investments right away. 

 

2. $20,000 – $50,000: BUY A TURNKEY RENTAL PROPERTY

Congratulations! You’ve officially set aside enough cash to start investing. At this point, I would highly suggest buying a turnkey rental property (How To Start Real Estate Investing). If you’re unfamiliar with these, you’ve come to the right place. Basically, a turnkey rental property is one that is fully rehabbed and ready to rent out. All you have to do it once you buy it is literally “turn the key” to unlock the front door. Your tenant can move in immediately, and a management company runs it for you, taking care of any repairs or maintenance issues that might arise. This is why people can own turnkey rental properties in an entirely different state and have the process run very smoothly. Because repair costs tend to be so low on turnkey rentals, they’re expected to bring in strong cash flow for the first several years, making this a solid option for first-time investors. 

 

3. $50,000 – $100,000: BUY TURNKEY, BRRRR, OR FLIP

At this stage in your investing, you have a few more options. First, you can keep buying turnkey rental properties (or have waited until now to buy your first). As stated above, this is one of the easiest and least work-heavy investments to make. You also have two other options that I tell people about. Let’s start with BRRRR. This stands for “buy, rehab, rent, refinance, repeat”. Through the BRRRR method, you’ll buy homes quickly, add value through rehab, build cash flow by renting, refinance into a better financial position—and then do the whole thing again. The key to success with the BRRRR method is to buy properties under market value and never investing more than 75 percent of the property’s after repair value (ARV). The third option would be to flip your real estate investment – basically, buy it, spruce it up, and then re-sell it for a higher price. Similar to BRRRR, it’s important to never pay more than 70% of the after repair value (ARV), minus repair costs. 

 

4. $100,000+: BUY TURNKEY, BRRRR, FLIP, OR  BUY MULTIFAMILY

So at this point you’ve saved enough to officially invest in multifamily apartment buildings. At this stage in your investment journey, you’ll have the most options and can decide between the three options mentioned above, or buying a multifamily apartment building. Whatever you do decide, at this stage in the game, you’ll have more flexibility. With multifamily apartment buildings, you’ll generate cash flow, passive income, valuation potential, scalability and tax benefits. At the same time, however, both turnkey and BRRRR will also provide you with most of the same. For more information on the seven benefits of turnkey rentals, check out this article: 7 Turnkey Property Benefits To Know.

No matter where you are in your financial journey, there’s always something to plan for. That’s why we want to encourage you to do your research, save, and whatever you do – do not impulsively invest your hard-earned money. It may take time, but your saving will pay off and you’ll soon be the owner of an impressive real estate portfolio. 

Investor Spotlight: Elena

We were recently fortunate to be able to interview another one of our valued investors. Elena lives in Westchester County, New York, and has been investing alongside her husband for five years now. As a full-time real estate investor, Elena has learned a ton about real estate, how to comfortably invest out of state and how to match her family’s goals and expectations with real estate property. We hope you enjoy reading about Elena’s experience with real estate investing in general and with MartelTurnkey in particular. 

 

MT: What first inspired you to get into real estate investing?

 

Elena: My husband and I have always thought about the best ways to gain financial independence, so it was a quick process once we started learning about real estate investing. Our number one goal was to gain that financial independence with passive income. But the second reason is because we both wanted to create a lasting legacy for our family and children. When I think about a legacy, I just loved the idea of having a portfolio of income-producing properties to leave behind. In the beginning, it was about expediting our path to financial independence. The more we learned, the more we realized that real estate investing is a great way to build generational wealth. We started developing a more interesting perspective on accumulating and preserving wealth through generations. We love that we’ll be able to leave behind a portfolio of income-producing properties for our children as it will give them a sort of safety net, something they can count on–not that they have to–but something that is available to them. After all that realization, that’s when I decided to pursue real estate investing full-time.

 

MT: How have you set up your real estate investing business?

 

Elena: On the passive side, we roll most of our rental properties into the LLCs we have set up. We’ve  set it up this way because it gives us asset protection, more flexibility, and it makes it more straightforward for tax purposes. On the active side, we have our company called E2F Properties, which I’m growing and building daily.

 

MT: Have you noticed an improvement in your lifestyle or how much time you are able to spend with your family?

 

Elena: The short answer is yes. But we didn’t start investing in real estate to experience the lifestyle change. My husband enjoys his job, and I enjoy the business of real estate investing. Neither of us minds working hard as long as the work allows us to grow and improve as individuals. I believe that striving to become better makes me happy, keeps me at peace with myself and makes me feel successful. In the beginning, we looked into real estate investing as a way to increase income and expedite financial independence. Once we got into it, I have had a whole shift in my mindset about building generational wealth. And I think that moving toward our goals more quickly and becoming a better, more informed person are ways to improve lifestyle. It goes back to how you use your time. What do you do with your time? Having control and flexibility with how you spend your time is one of the most important assets, in my opinion. People ask me sometimes what I think of success. I think of success as working every day to become a little better and toward having full control of how you spend every minute of your life.

 

MT: What made you comfortable with investing in out of state real estate?

 

Elena: For me, I was never not comfortable with out of state investing. Because New York, where we live, is not a landlord-friendly market, we looked to invest out of state from the beginning. We researched many markets where people are doing business and where there is a lot of investment opportunity. I got in touch with some turnkey providers in multiple states, as that was the easiest way to start. And that’s how I started.

 

MT: How did you find MartelTurnkey?

 

Elena: It was through a group of investors that we both belong to. I stumbled on the name in an online community. At that stage we had already bought a few properties from other turnkey rental companies, but we weren’t very happy with their products and process. We felt we were just one of many investors, and these properties were average picks. And then we saw Antoine at this investors group. From the first time we spoke with him, we were impressed by how knowledgeable he was. The market knowledge and plans he had for his company convinced us of his competence. We knew from the first conversation that we could become long-term partners. We have since bought many properties from MartelTurnkey and it has always been a great experience. 

 

MT: What kinds of questions did you ask before investing with MartelTurnkey?

 

Elena: We started by asking a lot of questions about the market. For example, our first property we bought with Antoine was in Memphis and it was a new market for us. All our questions were about the market. Why Memphis, why this zip code, why this area, and so on. The second set of questions were around the property. The process of finding the house, types of renovations he does and so on. Finally, we asked what the process was for us as investors. We didn’t just want to buy a one-off property; we were looking for a good partner. We wanted to make sure that this company, this partner, would be  there for the long term.

 

MT: What has your process been working with MartelTurnkey? 

 

Elena: It’s been very, very simple, to be honest with you. The difference between MartelTurnkey and others is that you can tell they spent a lot of time and effort in making the process as simple and as transparent as possible for investors. They provide you information about the property and put you in touch with a network of professionals that make the purchase simple. I’m talking about lenders, inspectors, property management companies they’re using – the whole experience becomes turnkey. And the best part of that, is that these are the same companies and individuals that they use themselves.

 

MT: What real estate investment challenges have you had to overcome?

 

Elena: I think the biggest challenge for us is building a portfolio of properties that is right for the needs of the moment, but also set up to be successful in the longer term. We’re looking at this as a way to create a large portfolio of properties which will give us income to be financially independent and build generational wealth. As such, we have to strike a balance between cash flowing properties and properties in appreciating neighborhoods. Our biggest challenge is striking a balance between looking at the needs of the moment to make sure that we continue to grow the portfolio, while thinking longer term.

 

MT: What has your experience been like working with MartelTurnkey?

 

Elena: My experience has been great, and I would recommend them to anyone who is either starting or looking to grow their portfolio. As I said, we have worked with other turnkey providers before who do not offer the same service as MartelTurnkey. I like the fact that they’re knowledgeable and fair. Those are very scarce attributes to find in this industry. Doing it right by their investors is a differentiating factor for them. That’s why I keep recommending them to other people. My experience has been very positive. 

 

MT: What advice would you offer to first time investors?

 

Elena: Three pieces of advice. 1) Do some research. Do secondary research, get online. There is a ton of information available online; seminars, programs, groups, and so on. Spend time reading through that information. 2) Talk to people. Don’t just rely on secondary research. Do primary research. Find a few people that either did it or are doing it even better and talk to them. 3) Don’t get in the trap of analysis paralysis. If you don’t try and if you don’t fail, then you don’t learn and you don’t grow. 

 

If anyone has questions for you, what’s the best way to reach you?

www.e2fproperties.com

info@e2fproperties.com

914-999-2293