Turn Key

20 Replies

Mr Johnson welcome to BP.

I’m not too sure of any turnkey providers in Beloit community.

Askbp and podcasts are located under the “ learn “ tab.

< My suggestions >

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Definitely take advantage of the VA programs.

Look into student housing and multifamily properties in Beloit.

@Antwaun Johnson

Welcome! I grew up in Illinois and had a good friend at Beloit College. I know the area well. 

Are you planning to go out of state? In Beloit? I think turnkey is a good way to get started, particularly if you lack time and have some money to invest.

I recommend strong due diligence on the property management side. You will find that makes or breaks the investment.

@Antwaun Johnson Do your research and pick a couple of markets based on their economic and demographic factors. Once you've selected a market, identify the turn key companies that operate in those markets and do extensive due diligence on them. You can check out the reputations of many turn key companies right here on BP.

@Antwaun Johnson

Big Ups for deciding to buy a rental property!  

There are a lot of good and bad turn key providers out there.  Some factors to consider are that most first timers forget are:

- What did the TK provider do to earn the money they are earning on the sale to you?

- How easy will it be to re-rent the property if the current tenant moves?

- Is the property rented at a fair price? (You don't want the TK provider pushing rents)

- Get all the background on the tenant in writing.  Credit score, job verification, kids report cards, whatever it is the TK provider says they do make them prove it. 

- Ask them for a list of properties they own in the same area. 

Good Luck! 

Originally posted by @Antwaun Johnson :

Hello everyone!  I want to invest in a turnkey property, any advice or guidance?  I'm kinda new to this.

 Hi Antwaun and welcome to BP!  There is so many elements to identifying a good turnkey provider to work with.  Now is more important than making sure that there is really good property management in place.  

First piece of advice is to understand your goals on the market. What return cash on cash, are you looking for? Are you a seeking cash flow, Appreciation, tax benefits, etc? I meet with approximately 10 plus investors per month and some have this down and understand the game. There are some areas with huge cash flow but the properties won't appreciate and others with minimal to no cash flow but will appreciate tremendously. You have to understand each and what makes sense for your goals. You would want to have a goal and work backwards. For example, if you need to make a certain amount per month, you'd want to figure out from your cash how many properties you could acquire and how to get them. You'd want a plan of possibly refinancing to cash out and turn the equity into multiple properties. Make sure the group or person you work with is experienced and the team has been vetted and can handle your needs. I have been at this over 25 years and invest in multiple emerging markets for my investors and have managed the realtors, property managers, contractors, title company and attorneys. A good turn key company can truly assist you in creating wealth using your cash or retirement accounts. Wish you all the best and if I can answer any questions, please feel free to ask. 

@Antwaun Johnson

Welcome to BP and to real estate investing!  I deal exclusively with turnkey investors so I can tell you a few attributes that my clients find important.

* Market (of course).  Do your research on which markets have reasonable pricing and returns and continue to grow and where property values are increasing

* Purchase your TK property a little below market value so you have equity from day 1

* The MOST important aspect (even more important than your ROI) is the management company. Without a great property manager in place, you cannot depend on a good return. It should be a reputable company who has been in business for a few years and has therefore had some "trial and error" already (so that you don't have to experience the errors!), they should screen their tenants very well to ensure only the best will be placed in your home and they should have impeccable communication.

Good luck in your search - feel free to reach out with any questions!

All the best ~

Val

Are you stuck on turnkey for some particular reason? I would think your market would have some good hands rental opportunities.
I would not seek turnkey investments unless i was in a high cost east or west coast market. Even then i probably wouldn't do it.

@Antwaun Johnson

Welcome to the vibrant BP community. Your time here will be well spent.

I added the below links on turnkey properties for your review.

https://www.biggerpockets.com/renewsblog/2015/08/20/askbp-089-how-do-you-evaluate-a-turnkey-company/ (Turnkey Evaluaton)

https://www.biggerpockets.com/renewsblog/2014/03/23/what-does-turn-key-real-estate-business-entail/ (Turnkey REI)

Now that you have made the move, below are some links that will help with the navigation of the site.

https://www.biggerpockets.com/courses/a-beginners-introduction-to-real-estate-investing (video courses)

https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)

Before your 1st purchase, please ensure you visit the below link for some tips.

https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/

REI books suggested by BPers

https://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)

http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)

Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.

Feast on the Podcasts, #askbp Podcasts, blogs and webinars

Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational, thought provoking ideas relevant to REI.

Hello @Antwaun Johnson . Not sure if you've considered investing in turnkey rentals out of state at all, but Columbus, Ohio is a GREAT rental market with a very strong local economy.  My company is located in Columbus and we primarily rehab and flip homes, but also sell turnkey rentals so feel free to message me if you'd like some more info on Columbus and our turnkey rentals.  

      Dustin

Welcome to the site @Antwaun Johnson

With you living in Wisconsin I imagine the local market would be pretty reasonably priced. Have you contacted some property managers and realtors local to you about properties in neighborhoods you are already familiar with?

Hey @Antwaun Johnson , have you made any progress on your goals since Sep 2015? Feel free to connect, and we can discuss what types of opportunities you're looking for, and how to help you get there.

@James Paine has provided you with some valuable checklist items to use when performing your due diligence. 

@Antwaun Johnson

I've seen this topic pop up a lot recently and it's obvious you've gotten some really good feedback. I shot a video this morning that I think will speak to your questions and hopefully others on the forums. Let me know if I can help in any way.


@Dan Zitofsky Good morning, 
When you said "There are some areas with huge cash flow but the properties won't appreciate and others with minimal to no cash flow but will appreciate tremendously." How would I know which area is which? Where would i go to do this research? Thank you in advance for your assistance.