Off Market Properties= NOT turnkey?

Question

I am new to REI. I am looking for something turn key, but am also looking for off market deals. Is it safe to assume that an off market property that someone is actually willing to sell would more than likely NOT be something turnkey? My line of thinking is, why would someone living in a turn key home want to sell? Hope that makes sense. Just trying to get a sense of if off market properties are a worthwhile venture for my first investment property if I'm set on getting something turnkey.

Nathan Gesner · Answer

A "turnkey" property is one that is fully renovated and read to go. Most investors are looking for off-market properties that have deferred maintenance. This allows the investor to negotiate a low price to purchase, allowing them to renovate and generate instant equity in the property.

Phil Moore · Answer

I think that there is a lot to unpack here, so I’ll try to do my best to address your questions. You’ve mentioned that you’re new to real estate. What has engendered your desire to get into off-market deals. What about turn key deals? I ask because it helps to speak in specifics so that you can maybe narrow down what it is that you want to do in the real estate realm.

Off market deals are one thing that typically have their own set of issues. More often than not they involve a distressed property with a motivated seller.

Turn key deals are another thing that typically involve investors who are looking to either sell to an end buyer or another investor who focuses on turn key rentals.

It will be difficult for you to find an “off market turn key” deal in the traditional sense of cold-calling, driving for dollars or whatever other creative lead generation tools that exist for finding motivated sellers. To address your question, you may find off market turn key deals if you get in touch with local investors who specialize in turn-key rentals and you get on their list of buyers. That is likely the sure fire way to do what you want. Finding that list, however, and getting connected with those individuals is another thing entirely. To do so, I’d start with searching around BP for an REI group in your area.

On the other hand, you may find that your inexperience works against you here. From an investor’s standpoint, what would make you a good buyer? Do you have a tidy sum of cash that allows you to close quickly on a deal? Or maybe you have a partner who has the money and you’re the who finds the deal?

I ask these questions to give you some things to think about. The world of real estate is big and wonderful and you can pretty much guarantee that whatever you want to do in it, someone has done it before and has written a book about it! Whatever it is that you want to do, always work to identify what is your most important next step. That way you can be sure to be taking actionable steps towards accomplishing your investment goals.

Welcome and good luck!

Cassi Justiz · Answer

MOST off market properties are not turn-key.

Depending on the level of "turn-key" you want, you may want to set your searches up for resell homes on the MLS, remodeled homes from a turn-key provider or even new construction. Everyone has different levels of comfort when it comes to their version of turn-key, so I would decide what level you are most comfortable with and start there.

Eliott Elias · Answer

More often than not off market properties need work done to them. Doesn't necessarily mean it can't be turn key.

Joseph Crunkilton · Answer

They're upside down, it's an inherited property, they're considering selling but haven't jumped yet, etc. Lots of reasons why it may not be on the market.

Turnkey is a vague term. You could turn around and rent a lot of houses you buy. Is it ideal? Probably not. Renters like modern features and amenities.

Off market deals take a lot of marketing and persistance. Doesn't hurt to try. Go get a list and start calling some homeowners.

James Wise · Answer

Yes it would be a safe assumption that an off market house is unlikely to be in a turnkey condition.

Drew Sygit · Answer

What specifically are you looking for?

How much time do you want to invest each week?

Turnkey is at the low-end of time, but also cashflow.

Buying off market usually involves more time and cashflow or income.

Carlos Ptriawan · Answer

off-market turnkey is something like you have a 2022 Mercedes Benz but you want the price to be the same as 2009 Kia Rio.it simply doesn't work. There's a reason why there's a market for "off-market" and a market for "turnkey providers".Why do builders that rebuild houses from scratch want to have their houses sold for much cheaper? they want exposure as much as possible.

Bob S. · Answer

Not a correct assumption, I have sold 100s and 100s of off market properties, turnkey. If there are any repairs its included in the PP, not for the buyer to be concerned with

Good luck to you

Nicholas L. · Answer

@Briana Martin

there's no clear cut answer to this.  if by turn key you mean provided to you with a tenant in it by a turnkey company, then that won't be off market.  but if you mean rentable without needing a lot of work, then... maybe.

do you have capital for a down payment on something?  what are your goals?

Off Market Properties= NOT turnkey?

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