BiggerPockets

Has anyone had any dealings with this company? They are based in Charlotte, SC and rehab SFH, find tenants and sell them on together with the leases, and continue to manage them. The homes are generally in the +/- $100k price range, and rents offer a reasonable ROI. I'm guessing appreciation won't be big, but as a hassle-free toe-dipper investment, the risk seems negligible given the small amount invested. I'm sure there's lot's of downsides, but has anyone used them, or any companies offering similar services?

did you mean charlotte, north carolina?? if so, i'd love to look them up for you...100,000 is very high for rentals in my area

Joe,
Interestingly I was doing some research on the same company and ran across your post. I am looking around at some turn key companies and wanted to know if you had found anything else out about this company or any others. I could not help but think of the old adage "if it sounds too good to be true, it usually is". the deals they are putting together just seem to make too much sense and it makes me a little suspicious. if you find anything out let me know and I will do the same if you are interested.

not only do the cashflow numbers not make sense in my opinion, but they're also selling the properties at or above retail...get an appraiser to check out the property you're considering from them....trust me...the property they sold on allegheny st, it looks like they were asking 75k...i bought a rental a block from that house in the same neighborhood for 19k this year, same size and style home too...does it still sound like a good deal? if you're interested in the charlotte market, PM me and i'll be glad to help and get you in touch with a good real estate agent or answer any questions you may have about the area and neighborhoods...

They probably seller financed or lease optioned it to bloat comps. Btw, don't you mean you bought that house for 49k and are willing to part with it at 59k? 79% of FMV? :mrgreen: Oh the crap people pull in this business....lol

Seems like somebody associated with this company just joined BP:
http://www.biggerpockets.com/users/InvestCharlotte

Look at the website in his profile.

Yes, I have been in touch with the company and they seem to run a tight ship. Are they priced a little over market? Maybe, but you need to take into account the service they are providing, and who they are targeting. This is a full turnkey operation, from rehabbing, finding tenants, and managing. If you come from California, or other expensive States, the numbers are attractive, and if all you want is passive income, it's better than bonds, and relatively risk free. There are a few companies tapping into this market due to a lack on fixed income opportunities available in securities, that many baby-boomers are dependent on. My approach has been to look for established turn key operations, and then use a buyers broker to do the leg work and advise. Sure you can buy foreclosures, and rehab yourself creating bigger margins, if you have the experience. But not recommended if you live hundreds of miles away.

I'm looking at other operations in DFW, and Las Vegas and will see how it goes, and then invest more, or disinvest according to results. SFH iro $100k with cap rates of 7-8% seems to be were it's at. Before anyone jumps on those figures, this is not about getting rich and making lots of money. It's for those who have their pile, and want an income.

For anyone interested in RetireonRentals or any other turn key operation, I strongly advise doing lot's of due diligence, jumping on a plane to visit, and using a buyers broker.

They have given the website (link doesn't work) but say they are a UK investor, so something not quite matching up there.

I achieve a lot better returns here in California than they seem to be offering.

I have seen similar operations in a couple different cities and I am generally against them. Who do you think gets the best renters in operations like this?

1. The properties they own.
2. Their biggest clients.
3. You?

If you're paying cash, the returns aren't as hot... 8% using their proforma, 5.5% using the 50% rule.

You might as well invest in California... you could probably beat their returns if you shop right.

Now buying in the same neighborhood for 19k and getting $800/mo in rent like Bryan did, is maybe a different story.

You need to understand the difference between passive and active investors. Turn key takes all the leg work out for the passive investor. They are two very different animals; both defined by their risk appetites an where they are in the life cycle.

If you looked hard enough in California you might find some properties that compete with the less pricier states, but as every investor knows CA real estate is mostly more expensive, and the returns poorer. I live in California, and we have seen precipitous price declines in places like Riverside. If you can find an established turn key operation (this is the key), offering decent returns, I'd be the first to be investing there.