Turnkey Rental Properties and Recommendations

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Turnkey Rental Properties and Recommendations

Menalik Archer
Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes

Hi All,

I'm just starting out and ready to buy some turnkey rental properties. There's one company that sends me listings every so often but when I google the company, nothing shows up except for their main webpage. The deals are fantastic as far as the numbers go but I'm hesitant to "give money out over the internet" to a company that I can't do much due diligence on. I spoke to a rep and he seems very knowledgable about the process.

1. What questions would YOU ask them before doing business with them?

2. Can anybody recommend a reputable Turnkey Company that they've worked with? I'm looking for properties around 100k or less to start with.

Thanks!

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Jeff Wallenius
Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
9y

@Menalik Archer if you can't verify the track record of a turnkey operator that's a red flag in itself. There are quite a few potential pitfalls with dealing with turnkey rentals and a whole myriad of questions that you need to ask. What areas are you looking to invest in? What's your goals? I'm happy to assist if I can, feel free to PM me for additional.

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  • JR Hinds
    Investor · Portland, OR · Member since 2014 · 146 posts · 101 votes
    9y

    I'd be very cautious about deals with fantastic numbers from a company with a business card website. Check out turnkey-reviews.com and see if there's anything there. Turnkey companies are mostly local, so you'll want to identify your market first, then find a turnkey provider you like.

    2Reply
  • Jeff Wallenius
    Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
    9y

    @Menalik Archer if you can't verify the track record of a turnkey operator that's a red flag in itself. There are quite a few potential pitfalls with dealing with turnkey rentals and a whole myriad of questions that you need to ask. What areas are you looking to invest in? What's your goals? I'm happy to assist if I can, feel free to PM me for additional.

    3Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Menalik Archer Along with JR's and Jeff's cautions above, I suggest you research the people in who own any company you are considering.  Some shady players will switch company names when the previous one gets a bad reputation.  Are you looking to invest in Florida, or elsewhere?  

    1Reply
  • Menalik Archer
    OP
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
    9y

    @Larry Fried Thanks! I'm open to investing in and outside of Florida. I'd like to start out with properties between $50k-$100k.

    0Reply
  • Elizabeth Wilson
    Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    @Menalik Archer - I agree with the rest of the guys and would add that I'd make the effort to come meet the teams and talk with some of their current clients. It's a long term relationship.  There are some great companies in Memphis!  @James Wachob and @Chris Clothier are both hosting investor events in May.  Great way to learn about the city and these guys and their companies.

    The BP forums is also a way to get feedback on any TK company before signing deals.

    Good luck! And let me know if you decide to come visit us on the river!

    1Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    Here are a couple of questions you can ask.

    1) Do they own real estate in the market and are they actively buying

    2) Do they purchase or own real estate in the areas they are currently selling (in other words, would they own what they are selling)

    3) Do you pull permits on your jobs

    4) Is their PM company licensed 

    5) Explain how your property mgmt company is transparent with maintenance and billing your property management company (Probably most important as a non-transparent PM can bleed you)

    6) How does your Property Management company excel in communicating to the investor (also important as you are out of state)

    901-848-9028
    1Reply
  • Menalik Archer
    OP
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
    9y

    @Elizabeth Wilson Thanks for the info!

    @Alex Craig I'll definitely be asking these questions. I've bookmarked your website as well.

    From what I've been seeing, Memphis seems to be a a great area for turnkey properties. I'm considering flying up one weekend to check out some of the neighborhoods.

    2Reply
  • Derrick Craig
    Memphis, TN · Member since 2013 · 969 posts · 524 votes
    9y

    @Menalik Archer

    1. How did they get started, Do you have any body that I can speak to that you have done business with, and last but not least do you invest and or manage properties the areas you are promoting. Alex stated a lot of the other questions I would also ask.

    Good luck and happy investing!!

    0Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    9y

    Feel free to ask the BP community about a specific company and you will get real feedback. What you really are looking for is a company you know you can trust. You want a company that has longevity in the business and places clients success above their personal interest. 

    Visiting Memphis and looking at their operations first hand is also a good idea especially if you are feeling nervous about the company you want to work with.

    1Reply
  • Menalik Archer
    OP
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
    9y

    @Stephen Akindona The company in question is Rent To Retirement .com
    I'll check out your company also. Thanks!

    0Reply
  • Stephen Akindona
    Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
    9y

    I actually know Zach and we work with him as well and he is a standup guy! I know he owns several properties here in Memphis and in other markets across the country and I know you will be in good hands working with him! If others have worked with him I'm sure they will chime in!

    1Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    I don't know the guys at rent to retirement. I noticed the phone number on their site is not local. That is always a red flag. I would rather work with local market experts, especially since each market has many to choose from.

    901-848-9028
    1Reply
  • Menalik Archer
    OP
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 21 posts · 7 votes
    9y

    @Stephen Akindona Oh Perfect! I've spoken to Zach. Good to know he's reputable!

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    9y
    Originally posted by @Menalik Archer:

    Hi All,

    I'm just starting out and ready to buy some turnkey rental properties. There's one company that sends me listings every so often but when I google the company, nothing shows up except for their main webpage. The deals are fantastic as far as the numbers go but I'm hesitant to "give money out over the internet" to a company that I can't do much due diligence on. I spoke to a rep and he seems very knowledgable about the process.

    1. What questions would YOU ask them before doing business with them?

    2. Can anybody recommend a reputable Turnkey Company that they've worked with? I'm looking for properties around 100k or less to start with.

    Thanks!

    Always make sure they are a real/true Turnkey provider! Sometimes there are companies out there that just throw the word "turnkey" around without knowing what it rally means.

    I would suggest looking at: How to Find the Right Turnkey Real Estate Investment Company for You

    That will help you ask the right questions. Best of luck!

    0Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    @Menalik Archer Happy to answer any additional questions.  I consistently work in the Memphis area and have a personal portfolio there as well.  I've had a number of conversations with Alex & his partner Jeremy, but he does not seem to remember me.... : (

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5335 Reviews
    WebsiteView Page
    0Reply
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