G’day, mates! How are ya?
You’re probably wondering why my latest two blog intros start with the above greeting. The reason behind this intro is a recently formed Facebook group where people from all over the world are posting selfie videos of themselves saying “G’day, mate! How are ya?” in an Australian accent. Even BiggerPockets’ very own Brandon Turner tried out his Aussie accent. For each video posted to the page, we will be donating $1 at the end of the year to assist people struggling with mental health issues. To have a few laughs or post your own, please click here.
Its been a very busy week for your favorite Australian 🙂 — I spent 3 days in Alabama meeting a ton of awesome people along with speaking in my first ever speaking engagement. People who know me well can vouch that Engelo Rumora feels no fear or hunger, but just sheer determination and a burning desire to succeed. Well, let me tell you this, I couldn’t sleep for one month before the speaking event and almost fainted three times before I took stage, only to rock the house once I actually started speaking.
As entrepreneurs and real estate investors, we start to excel once we push ourselves out of our comfort zone. That’s where the magic happens. With that being said, let me share two quotes with you that I have plastered on my office walls:
“Transform fear into prudence, pain into transformation, mistakes into initiation, and desire into undertaking.”
“An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.”
In last week’s blog post, I touched on my perception of the 3 key traits that any reputable turnkey company should possess. We received many constructive comments from other investors about additional traits that would complete a genuine turnkey provider. So we have decided to expand on our initial blog with Part 2 of the “3 Key Traits to Look For in Any Reputable Real Estate Turnkey Company.”
Besides 1. Prompt Communication, 2. In-House Property Management and 3. No Pressure Sales Tactics or Gimmicks, please find below a further 3 traits that we believe are vital to success in turnkey real estate.
Here it goes.
3 (More) Key Traits to Look For in Any Reputable Real Estate Turnkey Company
4. Accurate Numbers
I can’t even tell you how many times I have seen pro-forma sheets from operators with false numbers — from asking prices that are an over-appraised value to higher-than-market rents and incorrect estimates of the ROI. All these figures look pretty on paper, but in many instances are not sustainable in real life.
As always, I stress to establish trust and relationships with key people on the ground before investing. Also, before you invest, you must educate yourself enough to have a basic understating of the market you are buying in. For example, you’ll want to know the average sales price of a 3 bed, 1 bath home in a particular area, as well as what the going rents are for a similar property. Having the right people on ground who are your eyes and ears and heart and soul, along with a basic understanding of the numbers in the market, will ensure your success.
5. An Online Presence
“If you’re doing the right thing, then you have nothing to hide.”
It is very easy these days to find out someone’s history just by doing a basic Google search, or if you want to get deeper, there are programs that can let you know about criminal convictions, lawsuits, loan defaults, etc.
The biggest and best turnkey companies in the country have some of the best designed and marketed websites. You can easily see founders and their staff plastered all over the web in videos, interviews and podcasts. In my opinion this is a great indication that these individuals are proud and genuine and have not wronged anyone in the past are doing anything inauthentic at the present time. Start by conducting thorough due diligence on the people you are looking at working with, rather than the actual area and numbers in the deals.
6. Solid Referrals & Testimonials
In short, they say, “You’re only as good as your last game.” In real estate terms l like to say, “You’re only as good as your last investor says.” 🙂
The best way to determine someone’s past performance is to connect with investors who have already been down the path you’re looking to walk. The longer the investor/investors have been on board, the better feedback you will receive. If you are considering to work with a younger company, I suggest getting multiple referrals from previous investors along with connecting with experienced market leaders who have no conflict of interest, as they aren’t associated with the company in any way. It’s a small world out there, and everyone knows everyone. These experienced folks will be able to give you great insight about what is being discussed about a particular individual or company. BiggerPockets is a great source for this.
At the end of the day, a reputable turnkey company will not take on business for the sake of making a profit and will only work with investors who fit their own business model and can genuinely make it a win/win situation for all involved. This will give them the best possible chance of going above and beyond for every investor and providing them with their utmost undivided attention at any given moment.
That concludes my opining and perceptions on some key traits that reputable turnkey companies should possess.
What did I miss this time? Have anything to add?
Thanks for reading and share your opinions below!