Mastering Turnkey Real Estate: Insights from the REsimpli Mastermind with John Blackburn and Sharad Mehta

Seasoned real estate investor John Blackburn visits CEO Sharad Mehta and shares his journey in this REsimpli Mastermind session. Having more than two decades of experience, John shows how he evolved from a traditional real estate agent to create a portfolio of fix-and-flips, wholesaling, and rental properties.

Turnkey investments, he says, offer the ideal solution for anyone seeking professionally managed, cash-flowing, completely renovated residences. By focusing on Midwest states including Indiana, Missouri, and Tennessee, and by developing appropriate pricing ranges and tenant-friendly policies, John has maximized income flow.

He stresses the significance of effective property management in guaranteeing long-term profitability and notes Roofstock and BiggerPockets to support buyer search. Changing with the times, John emphasizes the need of buying reasonably priced properties even with rising interest rates since rates can be refaced later.

John also talks about financing choices, suggests Kiavi, a hard money lender with adjustable credit limits, and gathers funds to fitably grow. Should investors finally see steady increase in their real estate career, he counsels them to concentrate on developing solid rapport with lenders, buyers, and property managers.

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Key Takeaways:

1. From Breathing to Building:
   Sharad explores John’s fascinating balance between personal wellness and a thriving real estate business. After overcoming a recent illness, John opens up about how his journey with health parallels his approach to long-term rental investments. With over 18 years in real estate, John shares his methodical entry into turnkey rentals, focusing on properties in Connecticut and Southern states, all while managing his portfolio remotely from San Diego. The discussion highlights the power of discipline—from mastering cold plunges to tapping into Midwest opportunities. (00:03:06)
2. Mastering Turnkey Success:
   John delves into the essentials of turnkey real estate investing, shedding light on the power of working with a vertically integrated team to streamline property acquisition, renovation, and management. He emphasizes the importance of due diligence and how delivering a strong experience can drive repeat business. Sharad echoes this, sharing how satisfied investors often return for more and bring referrals. In today’s market, both see turnkey investing as a smart exit strategy, offering significant potential for investors seeking stability and growth. (00:06:39)
3. Turnkey Tactics in Changing Markets:
   Sharad and John dive into the challenges of turnkey real estate, discussing strategies for managing multiple properties to offset any underperformers. As interest rates influence market dynamics, John forecasts a future drop, hinting at rising demand for real estate. The conversation also uncovers top markets for turnkey investments, spotlighting the Midwest—especially Indiana and Kansas—as prime locations for growth and opportunity. (00:16:16)
4. Unlocking Midwest Real Estate Potential:
   With a focus on the Midwest’s rental market, this episode highlights the region’s strong cash flow potential. While favoring these landlord-friendly states, the discussion also touches on balancing investments in blue states by following strict qualification processes. The importance of raising private money to fuel ongoing real estate projects takes center stage, as consistent funding is emphasized as a key strategy for scaling turnkey investments. (00:21:49)
5. Smart Financing for Real Estate Investors:
   The discussion covers alternative funding sources like Funding Grow and Nb Capital Solutions to complement private money. As Luis seeks advice on whether to flip or hold a property in a challenging area, the conversation brings practical insights into leveraging different funding options for growth and stability in real estate. (00:26:58)
6. Fast-Moving Flips & Creative Financing:
   Sharad highlights how flips priced between $150K and $300K are moving quickly in his market, especially when mortgage payments are comparable to rent. John echoes this trend, noting that properties with ARVs below $350K are selling within a month. He also shares his positive experience working. (00:30:00)
7. Navigating Property Investments with Strategy:
   Area selection can make or break a real estate investment, as John points out the risks of higher maintenance and vacancies in less desirable locations. Sharad introduces Roofstock as a platform for new investors seeking turnkey properties, highlighting its potential for simplified buying and selling. The conversation shifts to property management, weighing the pros and cons of managing properties in-house versus outsourcing. John recommends starting small to understand the workload, while Sharad offers insights into effective management, including sharing his company’s operating procedures to help investors streamline their processes. (00:36:31)
8. Optimizing Property Management:
   John and Sharad highlight the value of professional property management for boosting portfolio value. John suggests testing multiple management companies with a few properties each before committing. Sharad recommends inspecting managed properties to assess quality. For larger portfolios, they discuss the benefits of in-house management, noting that it often leads to better oversight and control, especially as your portfolio expands.
9. Maximizing Local Financing for Rentals:
   The conversation centers on building strong relationships with local lenders and the advantages of working with hometown banks for real estate financing. John stresses the importance of these connections, while Sharad and Oscar dive into their unique entity structures for owning rental properties—Sharad through separate land trusts and John via an LLC that holds the trusts. Offering to share further insights on turnkey investments and his trusted teams, John opens the door for deeper collaboration and learning within the group. (00:46:18)
10. Boosting Lender Relations & Smart Entity Setups:
    Sharad highlights the importance of building relationships with local lenders, sharing how thoughtful gestures can lead to smoother financing. He and John also discuss their entity structures, where each property is owned in a separate land trust under an LLC—streamlining management and providing flexibility for both rentals and flips. (00:51:00)