First post but frequent visitor to these forums. With all of the TK companies out there now I’m curious if anyone has any recommendations based on what I’m looking for. I’m in a good position to invest now although I’m not sure it’s the best time given the interest rates.
1. TK, preferably new construction in sunbelt region or OH
2. Looking for a very good school district
3. Positive experience with TK PM
4. Positive CoC day 1. I understand the more passive, the less positive cash flow but for a first investment property this would be my preference.
I've looked into R2R, Roofstock, Doorvest, REI nation. But most properties are not new construction and from what I can tell not favorable neighborhoods or schools. Doorvest seems attractive to me given how passive it is but I'm skeptical of their property management.
If anyone has recommendations based on positive or negative experiences, I’d appreciate it.
Thanks for the interest. I don't know Doorvest. RS is simply an online marketplace like Zillow with no involvement post transaction. REI does a good job, and of course, I know RTR does an excellent job. Actually at RTR, the majority of what we do is BTR (build to rent) new construction in A and B locations that are positioned for growth and still have cash flow. We have made this transition over the past decade as we feel new construction in good locations has many benefits over older homes in C or lower locations. We also have some unique options available like 2.99% seller financing or investor loans with as little as 5% down. Those would be good things to learn about to consider. RTR also has an excellent reputation on BP and in general if you read reviews. Hope this helps in your search.
Here are some other BP forms that might be good to look at to get more information:
Thanks for the interest. I don't know Doorvest. RS is simply an online marketplace like Zillow with no involvement post transaction. REI does a good job, and of course, I know RTR does an excellent job. Actually at RTR, the majority of what we do is BTR (build to rent) new construction in A and B locations that are positioned for growth and still have cash flow. We have made this transition over the past decade as we feel new construction in good locations has many benefits over older homes in C or lower locations. We also have some unique options available like 2.99% seller financing or investor loans with as little as 5% down. Those would be good things to learn about to consider. RTR also has an excellent reputation on BP and in general if you read reviews. Hope this helps in your search.
Here are some other BP forms that might be good to look at to get more information:
First post but frequent visitor to these forums. With all of the TK companies out there now I’m curious if anyone has any recommendations based on what I’m looking for. I’m in a good position to invest now although I’m not sure it’s the best time given the interest rates.
1. TK, preferably new construction in sunbelt region or OH
2. Looking for a very good school district
3. Positive experience with TK PM
4. Positive CoC day 1. I understand the more passive, the less positive cash flow but for a first investment property this would be my preference.
I've looked into R2R, Roofstock, Doorvest, REI nation. But most properties are not new construction and from what I can tell not favorable neighborhoods or schools. Doorvest seems attractive to me given how passive it is but I'm skeptical of their property management.
If anyone has recommendations based on positive or negative experiences, I’d appreciate it.
Thanks
Chris,
I appreciate your mentioning my families' company as one your looking at. There are a few good actual turnkey companies out there in my opinion that offer good properties, but most importantly have good management. The biggest risk that most investors overlook because they believe their definition of Turnkey is the same definition of the person they are buying from, is how well was the property renovated and how good is the property management.
Of the companies you listed, only one company actually purchases a property, does the renovation themselves so they are fully aware of the issues before and after, physically handles the marketing and renting of the property so they are fully aware of the on-the-ground rental situation and only one company offers the physical management of the property going forward allowing for quick and transparent information and updates. That would be REI Nation.
The other three companies are much more like MLS alternatives. You might even say they operate like dating sites. They collect information on either you or a property and seller or both and then match you up. In some instances, the other three companies are making thousands of dollars on a transaction being paid by the selling company. But, they are not buying, renovating or selling anything, rather acting like a marketplace or matchmaker and getting paid for those services. You can certainly imagine a scenario where whomever pays the most, regardless of quality of product or service, is going to get the most recommendations.
REI Nation does build about 50 properties per year from the ground up, but that is a very attractive property and can command a lot of demand from investors. I'd recommend you spend some time researching areas of the country experiencing growth in population and jobs. Then research actual Turnkey companies in those areas. Reach out to some and go through the actual process of learning about them and who they if you have not already.
I would suggest sticking with companies that offer all of the services in house as there is one point of contact and one responsible party. There is nothing wrong with the other companies you listed and each serves a need in the investment community or else they would not be in business. However, if you are interested in building a long-term relationship with your investment provider and wanting to build out a portfolio that you can rely on for future equity, income and wealth growth, your relationship with the actual providing company is the most important.
Be patient and don't be in a rush. Right now, cash flow is of super low importance. The most important thing is buying quality assets that will hold and appreciate in value. Same with rent. In the future, rates will come down and when they do, expect values to strengthen and go up. That is when you refi and drop your note and increase your monthly revenue - maybe even creating the scenario where your assets are going up while you are able to keep more of the revenue.
If you have more questions, ask away. Best of luck - Chris
@Chris Clothier Thanks so much for the input. It would be good to note that Rent To Retirement certainly does have our own development and rehab division as we do many of our own projects in house, especially in the build to rent space as well as sourcing and vetting the top other builders and rehabbers across the country.
@Chris Clothier Thanks so much for the input. It would be good to note that Rent To Retirement certainly does have our own development and rehab division as we do many of our own projects in house, especially in the build to rent space as well as sourcing and vetting the top other builders and rehabbers across the country.
Keep up the great work sir!
That is awesome and a great move by you guys. Apologies, I was not aware that you were doing you own projects now. As you know, using your own money to build out a team, acquire the projects and see them through adds a lot of pressure, but also adds a lot to the final product you are offering. Are you doing management yet or is that 3rd party? Either way, I will make sure I include you guys in those that are physically building their own projects. Good luck!
