Antoine Martel Review | Why Out-Of-State Section 8 Turnkey Investing?

January 13, 2023

Antoine Martel is a real estate investor and educator who, as of recently, is based in Miami, Florida. In this Antoine Martel review, you'll discover all about Antoine's background and the investment methods that propelled him to success. I'll be giving detailed information on his main real estate businesses and how they work.

You need to put in a lot of work to create a successful real estate business. The returns may be high, but so are the risks. If you are looking for financial independence without the risks that come with the real estate industry, check out local lead generation. This business model delivers predictable passive income without dealing with all the hassles of the real estate industry.

Pros and Cons of Section 8 Real Estate

Investing in Section 8 has many criticisms. In a video he posted on his YouTube channel, Antoine defends and explains why investing in Section 8 real estate is actually very good. He also talks about this in an interview on his father, Eric Martel's, podcast.

Advantages of Section 8 Real Estate Investment

  • Guaranteed Rent: The government pays a huge portion of your tenant's rent. It is difficult for tenants to get their Section 8 application approved, so there is a big motivation for your tenant to pay their share of the rent.
  • Massive Demand: Tenants usually wait around 1-2 years for their Section 8 voucher because of the long waiting list. Section 8 landlords will always have tenants waiting.
  • No Need To Market: You don't have to market your Section 8 property. The Section 8 rental board will post your property for you.
  • Longevity: Section 8 tenants stay for an average of 7 years
  • Higher Rent: To encourage landlords to put their property up for Section 8, the government offers 20–30% above the market rate.

Disadvantages of Section 8 Real Estate Investment

  • Annual Inspections: Local housing authorities usually find something to fix on their inspections. While this may cost you to have it repaired, it may actually turn out to be a pro in terms of long-term maintenance.
  • Rent Cap: The U.S. Department of Housing and Urban Development (HUD) will determine your property's fair market rent (FMR). Your unit rent will be capped at the FMR and cannot increase it, even if the rent in the area skyrockets. You may not accept outside payment to add to rent increase if prices in the area increase.
  • No Security Deposit: The Section 8 program does not include a security deposit. You need to go directly to the tenant to get this. 1 month's full rent as a down payment is the limit.
  • Delayed Early Income: The Section 8 office will not pay rent until after the tenant moves into the property, delaying the first month's rent. After this initial delay, rent should flow in smoothly.

The Key Points to Look For in a Section 8 Market

There are 2 main things you need to look at when looking for a Section 8 market.

  1. Median Home Price - The average cost of all houses purchased that month in the city.
  2. Fair Market Price (FMR) - The amount that the Section 8 program will pay you. 

Go to Zillow and search for the median home value in your city. Next, determine what county the city is in and Google its fair market rents. This is how you'll find the profit margins for Section 8 rentals in your market. The Section 8 program will typically pay 75–85% of the FMR. Every city and country has a different pay rate.

You need to find the areas where you can buy the cheapest houses to maximize profits. Avoid areas with a high crime rate and rough neighborhoods. Finding property management with good Section 8 experience and a good relationship with Section 8 authorities will also benefit you.

Best Cities for Section 8 Investment

In the Midwest, most Section 8 programs pay $1,000 to $1,600 in rent for 3-bedroom houses. 3-bedroom houses in many areas of the Midwest may cost anywhere from $65,000 to $85,000.

Antoine mentions 2 cities as his best picks for Section 8 rentals.

  1. Cleveland, Ohio - The population decline has slowed down. Cleveland's real estate market has been appreciating. Cleveland Clinic continuously improves roads, infrastructure, hospitals, and office space, which contributes to the rising real estate value.
  2. Detroit, Michigan - best place to find pure cash flow deals. There are lots of locations near great areas. Section 8 housing is in high demand due to 30% of families falling below the 30% income line.

Single family rental property is recommended for beginners as they have lower risks and are cheaper with lower down payment. They are also easier to find financing for. Tenants also take care of the property and pay for all the utilities.

Check out Section 8 Secrets by Tom Cruz, who, compared to Antoine's out-of-state approach, specializes in Section 8 rentals in your own local area.

Who Is Antoine Martel?

Antoine Martel was born in Toronto, Canada, and moved with his family to San Francisco, California, in 2010. After moving to Los Angeles in 2015 for college, he studied entrepreneurship at Loyola Marymount University.

As a kid, he sold plums to neighbors and candy and soda at school. During high school, Antoine created his wholesaling ecommerce business, TRACKL3T, in which he sourced from Chinese manufacturers and sold over 6K bracelets on multiple marketplaces.

Venture into real estate

He got into real estate when his brother brought him and his father to a real estate seminar. A few months before college, his dad funded a deal he found in Memphis. By the end of 2017, they had 10 single-family homes.

Antoine got addicted to real estate investment and started building networks on BiggerPockets. In 2017, they started selling the properties to have the funds to buy more. This was the start of MartelTurnkey.They now flip around 20 houses a month.

He started Shockwave Trucking LLC in late 2020 with his dad and a couple of investors. The company quickly ran into problems and was not as successful as expected. Since then, Antoine has focused exclusively on real estate and created MartelInvest and FlipSystem. Antoine is also available for mentorship calls at $199 for 30 minutes or $299 for 1 hour.

Social media

Antoine is the host of his podcast, "A Millennial's Guide to Real Estate Investing," and the author of "A Millennial's Guide to Investing in Cash Flowing Rental Properties." He has 118K followers on his verified Instagram account and 42.3K followers on TikTok. Antoine is in a relationship with successful actress and singer Soma Chhaya Bhatia, who also works as the director of sales for FlipSystem.

MartelTurnkey Review

MartelTurnkey, under the umbrella company MartelZ, is a full service turnkey rental company. They buy houses, renovate, rent them out, and hire a property management company before listing it for sale. The service also helps clients with financing, insurance, and management.

The listings are mostly in the states of Ohio, Michigan, and Tennessee. These properties are all in good neighborhoods.

martel turnkey review

Pros and Cons of MartelTurnkey

Pros

You will purchase a cash flowing rental property, which means you can start earning immediately.

Their markets are primarily in the Midwest and upper South, which have lower pricing.

If you wish to replace the management company, they can recommend some to you.

They have lenders available to recommend for financing.

Cons

While you can visit the property in person, it is discouraged as to not disturb the tenant.

Your options are limited to their preferred market.

There could be unforeseen issues with the property that can appear in the long term.

What Do People Say About MartelTurnkey?

On the huge real estate forum BiggerPockets, you'll find a mix of reviews of MartelTurnkey from people who worked with them, including clients, moneylenders, and management.

FlipSystem Review

FlipSystem is Antoine's training course that comes with a customer relationship management (CRM). The training and coaching program teaches you the step-by-step process of investing in real estate using various exit strategies.

The CRM was in development for 7 years before it was released. It allows you to automate your business as much as possible without the need to hire anyone else.

Pros and Cons of FlipSystem CRM Review

Pros

CRM that allows automation without hiring anyone.

One-on-one mentorship and weekly group coaching.

Access to a network of investors to acquire funding.

Cons

No price transparency.

The whole "done-for-you" approach to the offer makes it sound too good to be true.

Price

The price would depend on the CRM package you chose.

Refund Policy

30 day money-back guarantee.

What Do You Get With FlipSystem?

  • Step-by-step training course that teaches the systems and processes used by Antoine.
  • In-house acquisitions team that find on market and off market deals, and pocket listings from personal connections. You can pick deals on your CRM.
  • Access to partnered investors to fund your deals.
  • Depending on the package you chose, the CRM can include options which allow you to automate your business without the need to hire anyone else.
  • Phone and email scripts. Offering memorandum templates that help give credibility to your business.Joint-venture deal templates.
  • Unlimited one-on-one coaching for 1 year.
  • 2 group coaching classes per week.
  • Access to the exclusive Discord channel.

Are Clients of FlipSystem Successful?

FlipSystem gives a guarantee of success:

flipsystem review

I couldn't find any outside reviews on the course or CRM, but here are some of there are many success stories on their site:

Martel Real Estate Token

MartelInvest created the Martel invest token to allow you to invest in real estate on the blockchain. At the cost of $50 per token, you will own a portion of a diversified portfolio. The target return is 12% which is a combination of cash flow and asset appreciation. It will typically take 1-4 years before your investment returns.

There are certain advantages to using cryptocurrency to invest in real estate. The transactions are instantaneous, with very low transaction fees. Transactions done on the blockchain are also transparent. This is a fairly new idea, and it is a long-term investment opportunity.

Other Martel Businesses

Apart from the 3 businesses mentioned, Antoine also has:

antoine martel review

Antoine's father, Eric Martel, co-owns the family business, MartelTurnkey. Eric is an active real estate investor in both the United States and Canada and has his own real estate mentoring program called Financial Freedom Fast Track. He also hosts a podcast called "Break Away From the Rat Race."

Is Buying Turnkey Properties Worth it in 2023?

The value of real estate only appreciates over time. Now is as good a time as any to buy turnkey rentals. But before you do, you should know the pros and cons to assess the risks.

Buying a turnkey property that's already rented will allow you to earn money immediately. The inspections, appraisals, title search, and procurement have already been dealt with by the previous parties. If you hire a management company, you essentially turn the business into passive income.

Turnkey rentals have been renovated and sold at a profit. It may take a while to realize an increase in overall property market value. Some of these properties may be far away from you, which may prevent personal inspection. There may have been unforeseen issues that develop in the long run. Finally, you still have to deal with tenants or the management company if you hire one.

Other Methods of Real Estate Investment

There are many methods and exit strategies in real estate investing. Each comes with their own pros and cons. Here are some alternative courses.

The Science of Flipping by Justin Colby is a course on how to invest in 4 different types of properties in 4 different market segments.

Multifamily Mindset by Tyler Deveraux and Ryan Woolley specializes in multifamily properties that also provide funding for deals.

REI Game Changers by James Hodges and Alan Biel focuses on marketing in order to wholesale real estate properties quickly and with high returns.

For short term rentals, you can check my list of top Airbnb courses.

The Best Passive Income Model of 2023

Local lead generation remains my number one passive income business model. Like in real estate, you earn money by collecting rent. But with this model, you don't have to own property or worry about procuring financing to purchase property. You create and rank a site on Google using free tactics such as SEO. You then rent this site to local businesses to generate leads for them.

Starting a local lead generation business is very inexpensive when compared to real estate investment. You don't have to deal with issues that come with tenants, maintenance, policies and regulations, or anything else that comes with real estate. You get to keep almost 100% of the predictable passive income as profit.

This strategy is done in local areas, which means few competitions. You don't have to worry much about updating your site, as it could stay ranked for years. Once you understand the process, you just have to repeat it to scale your business. There's no limit to scaling. With enough sites rented, Local Lead Generation model can create time and financial freedom for you.

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