Bay area, CA · Member since 2021 · 383 posts · 306 votes
4y
Over time, few turnkey providers have lasted through the test of time and successfully made 100s of investors wealthy.
Regardless of their reputation, it's your money and future on the line, so it's always advised to learn and do due diligence on your own. If you feel pressure to invest with a company by their sales guy, better get out.
If you want to enjoy passive income without any hustle on your own, message me and I will connect you with some of the turnkey providers I have used in the past. I will share my story with you.
Rental Property Investor · Green Bay, WI · Member since 2016 · 150 posts · 94 votes
4y
Greetings @Eduardo Tanamachi Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns. If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.
Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.
The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.
All the best to you as you begin your investment journey!