Turn key companies

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Turn key companies

Jasmine C.Pro Member
Real Estate Coach · Reno NV · Member since 2015 · 273 posts · 62 votes

I have been trying to buy out of state investments and came across a turn key company in Memphis. Are these companies legit? Do they actually make the cash flow they say they do?

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Justin B.
Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
11y

I work with Curt over at BuyMempisNow.com.  We have 2 properties with them we purchased about 3-4 months ago.  They got 2-year leases exactly at the rate they advertised on their site.  I own 9 properties and this was more of a test for us (low risk).  So far it's worked out wonderfully.  The numbers are slightly lower than the properties we purchased ourselves but that's to be expected.

I am not affiliated with them and they didn't pay me to say that.  Just a satisfied customer passing along a recommendation.

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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    It depends on the company you work with, but for the good ones, yes they are legit and the money is there. I live in LA and all I've ever bought are turnkeys (although not in Memphis). I love them!

    0Reply
  • Jasmine C.Pro Member
    OP
    Real Estate Coach · Reno NV · Member since 2015 · 273 posts · 62 votes
    11y

    would you have any recommendations on finding a good one or could you recommend a company you use?

    0Reply
  • Nathan Eberly
    Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes
    11y

    I work with a turn-key company, Ohio Cashflow, and they have the best satisfaction rates.  Maintenance guarantee and tenant placement guarantees.  Ohio Cashflow is certainly legit, and I believe will be the standard for which all other turn keys will be judged.

    Meet with the companies in your area and in the area in which you want to invest, walk through their units current tenanted, and ask questions about their processes.  This way you can see if their company fits well with you investing goals and vision.  

    1Reply
  • Justin B.
    Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
    11y

    I work with Curt over at BuyMempisNow.com.  We have 2 properties with them we purchased about 3-4 months ago.  They got 2-year leases exactly at the rate they advertised on their site.  I own 9 properties and this was more of a test for us (low risk).  So far it's worked out wonderfully.  The numbers are slightly lower than the properties we purchased ourselves but that's to be expected.

    I am not affiliated with them and they didn't pay me to say that.  Just a satisfied customer passing along a recommendation.

    4Reply
  • Account Closed
    Houston, TX · Member since 2015 · 17 posts · 4 votes
    11y

    I have several TK firms I invest with and they have done right by me in several cheap US markets. 

    1Reply
  • Adolfo Zamora
    Real Estate Agent · Burbank, CA · Member since 2013 · 24 posts · 9 votes
    11y

    Nathan- I was looking into purchasing an out of state property and was leaning towards Ohio can you give me any advice on what areas to shoot for and which to stay away from? How long have you used this TK company (Ohio Cashflow)

    1Reply
  • Nathan Eberly
    Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes
    11y
    Originally posted by @Adolfo Zamora:

    Nathan- I was looking into purchasing an out of state property and was leaning towards Ohio can you give me any advice on what areas to shoot for and which to stay away from? How long have you used this TK company (Ohio Cashflow)

    Ohio has several good markets, including Toledo, OH (my base market).  Dayton and Columbus provide great opportunities.  Cleveland would be a next market.  Cincinnati has pockets of good items.  I'm a little biased to NW Ohio.  However, my tops would be Dayton and Columbus.  

    0Reply
  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    11y
    Originally posted by @Nathan Eberly:
    Originally posted by @Adolfo Zamora:

    Nathan- I was looking into purchasing an out of state property and was leaning towards Ohio can you give me any advice on what areas to shoot for and which to stay away from? How long have you used this TK company (Ohio Cashflow)

    Ohio has several good markets, including Toledo, OH (my base market).  Dayton and Columbus provide great opportunities.  Cleveland would be a next market.  Cincinnati has pockets of good items.  I'm a little biased to NW Ohio.  However, my tops would be Dayton and Columbus.  

     Holy smokes someone else from Bowling Green, Ohio!!! You'll see the orange shirt in my profile pic!

    Good to know you!

    2Reply
  • Nathan Eberly
    Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes
    11y
    Originally posted by @John Horner:
    Originally posted by @Nathan Eberly:
    Originally posted by @Adolfo Zamora:

    Nathan- I was looking into purchasing an out of state property and was leaning towards Ohio can you give me any advice on what areas to shoot for and which to stay away from? How long have you used this TK company (Ohio Cashflow)

    Ohio has several good markets, including Toledo, OH (my base market).  Dayton and Columbus provide great opportunities.  Cleveland would be a next market.  Cincinnati has pockets of good items.  I'm a little biased to NW Ohio.  However, my tops would be Dayton and Columbus.  

     Holy smokes someone else from Bowling Green, Ohio!!! You'll see the orange shirt in my profile pic!

    Good to know you!

     Ay Ziggy Zoomba!  

    I've lived in BG since 2003.  Had a brother and sister graduate from BG City schools (brother graduated in 2002, sister in 2008).  Didn't have direct relatives at BGCA though.  

    But its great to see someone else on here from BG!  How's the Columbus market doing for you?  Definitely in my sights.

    0Reply
  • Mark Shaffar
    Real Estate Agent · Madison, WI · Member since 2015 · 328 posts · 88 votes
    11y

    I bought a few duplexes from Calhoun Ventures in Minneapolis 5 years ago and am very happy with them. 

    I can't say I'm not unbiased though since I now work for the company CV merged with. But as a personal investor myself I would say look for someone who has done volume, compare their rent estimate on rentometer, look at comps to compare their price, check them out on Better Business Bureau, ripoffreport.com, turnkey-reviews.com, things like that, ideally tour the places you are considering, but that might be a stretch from Hawaii  

    1Reply
  • Mark Shaffar
    Real Estate Agent · Madison, WI · Member since 2015 · 328 posts · 88 votes
    11y

    I just noticed this article and thought it might help as well:

    http://www.biggerpockets.com/renewsblog/2015/04/01/newbies-gauge-rental-rates-before-buy-property/

    0Reply
  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    11y

    @Adolfo Zamora

    If you buy from Ohio Cash Flow make sure you get them to give you their lifetime guaranteed success in writing as stated by the company owner from a previous post. If you do business with them you wont have to worry about what neighborhoods to stay a way from as if your investment performs poorly they will make sure you are successful with all the guarantees and promises needed in order to make a low quality property perform like a good one.

    I have copied the link here where you can see that the lifetime guarantee is part of their program. Scroll down a ways to see the guarantee in writing.

    http://www.biggerpockets.com/forums/517/topics/179838-interested-in-investing-with-ohio-cashflow-time-is-ticking-until-the-doors-close?page=1#p1234705

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    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Jasmine C.

      Hey there as one who has owned over 350 of these types of homes in the mid west.. I can hopefully give you some sage advice.. I wrote an e book on the do's and don'ts of Turn key investing.

    if you PM me with your e mail happy to forward.

    ON this website anytime you ask about Turn key you will get in no particular order

    1. a response from a west coast marketing company that there only job is to sell you the Turnkey product that they represent and get paid for.. that has already happened so consider the source

    2. Turn key companies in the Market that you mention.. And again you will want to vette them at least your talking with the owners and not paying absorbent fee;s on top the purchase price because you choose to work with a west coast marketing company.. so save those dollars and go direct.

    Bottom line is out of state investing is a very serious thing and you cannot listen to anyone .. this is your money and you need to understand the risks.

    I will be in Honolulu at the Nauru tower for 10 days and if you would like to pop by I would be happy to discuss all that I have learned in my 20 years of owning and financing these assets. I am there at Nauru every 3 to 4 months for vacation 10 to 15 days depending on how wet it is in Oregon.. so happy to meet you and discuss

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    3Reply
  • Daniel Smith
    Cleveland, OH · Member since 2015 · 15 posts · 4 votes
    11y
    @Nathan Eberly:
    @John Horner:
    2Reply
  • Jerry Padilla
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    11y

    @Jasmine C. is great in Memphis. I put my recommendation in for him as well as several others in this post! 

    Turnkey-reviews.com has references for him as well. Good luck! 

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Curt Davis:

    @Adolfo Zamora

    If you buy from Ohio Cash Flow make sure you get them to give you their lifetime guaranteed success in writing as stated by the company owner from a previous post. If you do business with them you wont have to worry about what neighborhoods to stay a way from as if your investment performs poorly they will make sure you are successful with all the guarantees and promises needed in order to make a low quality property perform like a good one.

    I have copied the link here where you can see that the lifetime guarantee is part of their program. Scroll down a ways to see the guarantee in writing.

    http://www.biggerpockets.com/forums/517/topics/179838-interested-in-investing-with-ohio-cashflow-time-is-ticking-until-the-doors-close?page=1#p1234705

    Hi Curt,

    Thanks for your regular comments regarding anything and everything Ohio Cashflow. I feel from the content within your comments that we have wronged you in some way.

    It would be a pleasure connecting in person to discuss in further detail as to what we may have done wrong.

    Please advise if you're open to the idea?

    Thanks and have a great day.

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    0Reply
  • Jerry Padilla
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    11y

    @Engelo Rumora is another turnkey company that has also been mentioned in this thread. His clients seem very pleased and successful with him as well. He is great person to speak with. 

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Jerry Padilla:

    @Engelo Rumora is another turnkey company that has also been mentioned in this thread. His clients seem very pleased and successful with him as well. He is great person to speak with. 

    Hi Jerry,

    Your kind words are much appreciated.

    Thanks and have a great day :)

    Podcast Guest on Show #89
    Oz Realty4.5368 Reviews
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    2Reply
  • Nathan Eberly
    Involved In Real Estate · Bowling Green, OH · Member since 2015 · 23 posts · 12 votes
    11y
    Originally posted by @Daniel Smith:
    @Nathan Eberly:
    @John Horner:
     
    I never thought we would have three BG people in one thread, let alone bigger pockets!  
    0Reply
  • Haim Mamane Palman
    Investor · San Francisco, CA · Member since 2013 · 147 posts · 97 votes
    11y

    I purchased few properties in Memphis from different turnkey companies. The experience with Memphis Invest has been the best by far even though you pay premium for their properties. You get a fully rehabbed property and their customer service is outstanding. They also operate in Dallas and Houston and considered one of the best turnkey company in the nation if not the best.

    0Reply
  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    11y
    Originally posted by @Nathan Eberly:
    Originally posted by @John Horner:
    Originally posted by @Nathan Eberly:
    Originally posted by @Adolfo Zamora:

    Nathan- I was looking into purchasing an out of state property and was leaning towards Ohio can you give me any advice on what areas to shoot for and which to stay away from? How long have you used this TK company (Ohio Cashflow)

    Ohio has several good markets, including Toledo, OH (my base market).  Dayton and Columbus provide great opportunities.  Cleveland would be a next market.  Cincinnati has pockets of good items.  I'm a little biased to NW Ohio.  However, my tops would be Dayton and Columbus.  

     Holy smokes someone else from Bowling Green, Ohio!!! You'll see the orange shirt in my profile pic!

    Good to know you!

     Ay Ziggy Zoomba!  

    I've lived in BG since 2003.  Had a brother and sister graduate from BG City schools (brother graduated in 2002, sister in 2008).  Didn't have direct relatives at BGCA though.  

    But its great to see someone else on here from BG!  How's the Columbus market doing for you?  Definitely in my sights.

     It's going pretty good here.  We pretty much just focused on marketing here.  We have been doing a lot of wholetails, rehabs, and have just completed a few seller financed flips as well.  We haven't really gotten into the turn key market yet.  

    0Reply
  • Allison Karrels
    Investor · Gainesville, VA · Member since 2014 · 118 posts · 76 votes
    11y

    @Engelo Rumora Does Ohio Cashflow currently work in other markets besides Toledo?  I would be intrested in Dayton or Columbus

    0Reply
  • Peter Lohmann
    Property Manager · Columbus, OH · Member since 2012 · 309 posts · 275 votes
    11y

    Bottom line is out of state investing is a very serious thing and you cannot listen to anyone .. this is your money and you need to understand the risks.

    Quoted for truth.

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    11y
    Originally posted by @Allison Karrels:

    @Engelo Rumora Does Ohio Cashflow currently work in other markets besides Toledo?  I would be intrested in Dayton or Columbus

    Hi Allison,

    Thanks for your question.

    Our main focus is Toledo at the moment and we haven't yet fully expanded into the Dayton market.

    I think both Dayton and Columbus are great markets with higher growth potential than Toledo.

    Thanks and have a great day.

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    Oz Realty4.5368 Reviews
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  • Dan Mikolajczyk
    Las Vegas, NV · Member since 2015 · 10 posts · 2 votes
    11y

    The only way I can believe anyone is singing the praises of Ohio Cash Flow is that they are affiliated with them or being paid by them.

    They might be doing some legit business, i dont have first hand experience with them.  I just know that their website is very misleading. 

     @Nathan Eberly You are a Realtor at Danberry.  on Ohio Cash Flows site right now they have a property listed as 1951 Loxley rd.  Im sure, you are familiar with the area off of upton inbetween sylvania and central.  On their web site right now under that property they have this comment: "renovated comparable properties in the area have been known to sell for as high as $90,000"  is that a lie? because comps in the area are selling for between high teens to high 20s.  and nothing above that.  thats not embellishment. you endorse them, how do you explain this?

    I called 2 property managers personally and told them the street and that it was 800 square foot 2 bed bungalow and asked what the range of rents were. both said 500-600 max.  "if you keep the rents closer to $500/mo you can probably get a decent renter but for $600/mo they can get 3 bed in that area or a 2 bed in a much nicer area"  i could be wrong but I think $600 with a suspect renter is the best you could do. on their site.  they list the rents as $700/mo.  I lived in Toledo for the first 37 of my 47 years, I was a Realtor there for 7 years in the 90s and my brother is currently a Realtor there we own rental property in the city. You would have to being pulling lots of wool to get someone to pay $700/mo on this street.

    according to Lucas county assessors office the taxes are 1310 per year, Ohio Cash Flow list it as $1250 per year.  a small discrepancy, but still.

    the insurance cost is listed as $500/year.  really?

    the $840 per year in management fees seems to be the only thing that is correct.

    Their stated ROI takes nothing off for vacancy and/or repairs. that's a little suspect. a rental property that is NEVER vacant, wow. No repairs? none, on a rental property? in THAT neighborhood? every book, seminar, course or info that i've ever seen on rental property always uses at least 10% for vacancy and repairs....but on this property, none. these guys aren't inexperienced, by their own account they have flipped 30+ properties in KS they have property in Toledo and are looking to invest in other areas of the country. They Know there is a vacancy and repairs part of this, they chose to not include it.

    am I being to harsh? I don't think so. in my opinion none of this is even necessary. they bought the house for $9300 and they don't strike me as the sort that will put anything into a remodeling budget, so why not be honest and straight forward.  they bought it for $9300 it could probably take a coat of lipstick and then the pig would be worth low to mid 20s, maybe even low 30s if they sell it lease purchase or land contract.  or they could sell it to an investor by giving them real info like 

    $500/ month on a rent minus (-) 600 for vacancy and repairs - 800 for insurance - 1300 in taxes - 600 for management for a grand total of $2700 net per year. bought at something in the area of investor pricing $23k. that would get you a 11.7% ROI Not great for that area but still good enough for the right investor. if you were willing to take a little more suspect of a renter you could get closer to the 600 range and all the #s get better but then you have the headache of having a tenant that has no other choices but to pay more because they dont have a job and or any credit to speak of. $700/mo for this neighborhood? cant even imagine the renter.

    Am I wrong? does anyone here have any information that contradicts what I have put up here? they own the property, forward me an insurance account for 500 a year on a rental property. has the taxes been lowered to 1250 since they bought the property 1 month ago? can someone show me a comp for more than $25k?  and just in case anyone is confused about a comp an appraiser will look on its street then its subdivision, before going on to another area......in loxleys subdivision there are 8 comps within the last year ranging from $7750 to $24,900.  $90k???? not now or in the next 40 years will this house be worth $90k. and saying so is either lying or total incompetence. 

    They can be realistic.  

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