Key Solutions, LLC

[Dell Investor]

Hello to all,

Has anyone on this board dealt with a company called Key Solutions, LLC out of Baltimore, Md.  The owner is an Andre Johnson who reports to have a masters degree from Lehigh University and has done numerous rehabs in the Philadelphia, Wilmington, (De) and Baltimore areas. (Per their website)  They advertise in the classified section of this board and I was curious if anyone has had any first hand dealings with this company?

Tim

[Dell Investor]

Anyone at all?  Even heard of them? ???

[Dell Investor]

The lack of response speaks volumes!!!  Thanks for the input.

[TrixyEnigma]

I know this is a really old post, but I just came across their website and was curious about the same thing.  Has anyone on this board ever dealt with them. I'm giving this post a free bump because I'm in need of hte same information.  Also, the rehabs I saw didn't look that great :/

Shania

[kdhastedt]

Never heard of them, but they've got a website:

http://www.keysolutionsllc.com/

Keith

[TrixyEnigma]

I checked out the website and was sort of interested, I just wanted to know if anyone here had ever actually used any of their services.  Every business is gonna blow their own horn, I just wanted to know if the potential they were advertising is true or at least verifiable.

[masoning]

All I will say is to do your own due diligence and verify all their comps, ARVs etc.

[TrixyEnigma]

Definitely.  I'm going to start to verify some of their comps. That's easy in MD.  My best defense is my knowledge.  Thanks.

[Dell Investor]

TrixyE,

If you have any success in verifying their comps could you post it here?  Also, any other general info you come up with on this group would be appreciated as well.

[TrixyEnigma]

Hey Dell,

I did some research on one of their properties under the "Handyman Special" section and here's what I found using Marylands Real Property Database:

Property: 3016 Presstman St, Baltimore, MD 21216 (Under Contract)
List Price: 30,000 with a 2k deposit needed to remove from market
Rehab Est.:  37k
ARV:  105-110k

Comps:

1711 Ashburn St (.38mi away) sold for 145k in June-05
2228 Braddish Ave (.66 miles away) sold for 98k in July-05
2813 Harlem Ave (.69 miles away) sold for 91k in June-05
3422 North Ave--could not be found in the MD database
824 Whitmore Ave (1 mile away) sold for 116k in Aug-05
2703 Baker St--could not be found in the MD database

The sale price listed and the actual sale price in the MD database were a match.  Where I found a descrepancy (I'm not sure how much it matters) was in the distance of the comp properties from the property listed for sale.  I basically got directions using both Mapquest and Rand-McNally from Presstman to the other comp properties listed.  The first three comps were all further away--at least driving--than what was listed on the ad.  I'm not sure how much distance affects comps, but that's what I found.  According to both sets of directions the property at Ashburton was a half mile away at least, Braddish Ave was over 1 mile away, and Harlem Ave was also closer to 1 mile away.

Hope this helps,

Shania

[Immy]

I live in Maryland and I inquired with a real estate agent/investor about Key Solutions.  This person said that for some people the "handyman special" programs work fine.  But that the margin for profit is slim at best.   Comps and rehab quotes are not that far apart money-wise.   Reason being is that a rehab in general in Baltimore City is going to cost a minimum of 30 to 50K and a full blown rehab (read - ground up build) is going to be around 80K or higher.  They obviously have a lock on getting properties and then including their wholesale fee in the price set for you, the buyer.  You also have to purchase them, I believe, in a group or set.  And use their financing sources.  I looked them over quite a bit because I figured hey, the legwork is done for me, but I can't seem to find a deal in their listings that I would actually make a solid profit on; for me to take the risk in Balt. City on a full rehab I would want a minimum of 30 to 40K profit.  I know some books say if you'rre working on an ARV of 100K or less, then expect to make 10 to 15 K but I think that is crap.  The risk is very real in that area and if you are going to take it, you better get something big in return, IMHO.
I'm not saying their bad or whatever, I'm just relaying what I was told.
Good luck!

[TrixyEnigma]

Thanks Immy.  I looked it over and tried to crunch the numbers--purchase,plus rehab, plus holding, etc. and none of them seemed worth while.  I'm gonna keep looking.

[Dell Investor]

Thanks everyone for the input.  Much appreciated.

[bonedbykey]

I made an investment with them and I would suggest that people avoid them.
They say that it is turnkey, and that they will take care of everything but when they couldn't resell the property they pointed me to a realtor and said "good luck".
Rehab work was shotty.

There is no easy dollar.

Be prepared to have to drive to the property weekly and check everything.  Insist on inspection before they put sheet rock up.
Look at the work as if you were going to own the property for a while, because you might!

[xelkwonx]

I've heard of them...never did a deal with them though. I felt they blew me off somewhat when they found out I was a new investor without much capitol. A few of my friends checked them out, but none of them felt it was worth it. For what it's worth they have a good rep. with some of the other bigger investors in the locaol REI clubs.