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

by | BiggerPockets.com

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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About Author

Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He began buying rental properties and flipping houses at age 21, discovering he didn’t need to work 40 years at a corporate job to have “the good life.” Today, with nearly 100 rental units and dozens of rehabs under his belt, he continues to invest in real estate while also showing others the power, and impact, of financial freedom. His writings have been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media. He is the author of The Book on Investing in Real Estate with No (and Low) Money Down, The Book on Rental Property Investing, and co-author of The Book on Managing Rental Properties, which he wrote alongside his wife, Heather. A life-long adventurer, Brandon (along with his wife Heather and daughter Rosie) splits his time between his home in Washington State and various destinations around the globe.

4 Comments

  1. Mike McKinzie

    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

      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.

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