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#AskBP 089: How Do You Evaluate a Turnkey Company?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP, Real Estate Investing Basics
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How Do You Evaluate a Turnkey Company?

On today’s episode of the #AskBP Podcast, Mindy Jensen gives strategies for evaluating a turnkey company, and discusses the pros and cons of this investment for beginners.

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
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    Gregory Jackson Real Estate Agent from Boston, MA
    Replied over 5 years ago
    Well done Mindy! Greg
    Mike McKinzie Investor from Westminster, CO
    Replied over 5 years ago
    Excellent description of what a Turnkey Company does. But I think a correction needs to be done here. There is no way to just “spend $200 for a plane ticket” to see the property. We own 25 properties and have NEVER seen 20 of them. WHY do I want to see a property? That is like saying your want to visit the GM plant before buying GM stock. For me, if I were to actually visit a property/area, you are talking a Weeks stay in a hotel, 21 restaurant meals, rental car/cab, and other expenses. Why a week? You need to visit several neighborhoods, interview 2-4 property managers, visit Real Estate Offices, etc… You are talking at least a $1,000.00. A BETTER way to spend that $1,000.00 is to get TWO Professional, independent appraisals of the property, a Home Inspection and make a dozen phone calls. I can do Demo-graphical research online, jobs, schools, shopping, transportation, crime rate, etc… And if you are brand new to real estate investing, I would be at least 100 phone calls, mostly to other clients of the company. But also to other PMs in the market area, other Real Estate Companies, and if possible, neighbors of the property you are considering, if you can get their number (or write them a snail mail letter with a short survey and postage paid return envelope) Remember, money is valuable, TIME is more valuable but INFORMATION is the most valuable!
    Mindy Jensen BiggerPockets Community Manager from Longmont, CO
    Replied over 5 years ago
    Thanks for watching, Mike. There are many ways to research a property, and with 25 under your belt, you sound like you have a system that works for you. This was directed more toward newer investors. I think having eyeballs on a property when you are first starting out, or eyeballs on the area if you are starting to invest in a new location, is very important. I do see your point of it costing $1,000. But to vet a new area – especially if you aren’t very experienced – is totally worth it, in my opinion. You may spend that money and decide you don’t care to invest there. Better to spend a small dollar amount doing that than buying a property and flushing thousands down the drain all while experiencing headaches and stress.
    Aaron Hall from Reston, VA
    Replied about 3 years ago
    I’m years late to this video, but great video none the less. Thanks Mindy!