Where to find out of state Turnkey properties?

Starting Out
9yFollow

Where to find out of state Turnkey properties?

Sara Soleimani
Long Beach, CA · Member since 2017 · 34 posts · 13 votes

We are new to out of state investment and were wondering where to find the deals? Turnkey companies? MLS? Should we find local agents? What is the advantage and disadvantage of going with a Turnkey company? Having a team all together?

Any advice is really appreciated! Thank you:)

0Reply
178 views

Most Popular Reply

Maxwell Lee
Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
9y

You can find plenty of info about turnkeys, pros and cons, questions to ask, etc on this site. But to give you a broad overview:

First, the definition. Turnkey in its true form should mean fully-rehabbed. Usually with tenant in place and PM company in-house. So with that established

Pros - 

1) Your work is minimal. You only need to thoroughly vet one provider, who would "replace"the realtor, GC, and PM in your team. You would also only need to manage one ongoing relationship. REI isn't 100% passive as you do always need to manage your vendors/workers to some degree.

2) You should have a stable asset. Capex should not come into play for awhile as all major systems are brand new, and since the turnkey company did the work they should be the ideal candidate to manage the property. If they stand by their product, and if they believe they can get you a good tenant, they should also be able to handle the PM responsibilities with little no problem...in theory.

3) Cash flow from day 1. Some turnkeys will allow you to close after tenants are placed. Which means you get rent checks as soon as you purchase the home. And you can definitely buy with a loan. If you went at it yourself, for a similar fixer upper you'd probably have to buy with cash and you wouldnt get a rent check during the rehab phase or while the property is listed for rent. Could be many months...

Cons - 

1) You pay a premium for the convenience of a finished product. Rarely will you be buying at a discount and some turnkeys argue that you must pay over market as your product is of better quality than what's available on the market. 

2) If you picked a poor turnkey then they can really screw you. Definitely find a way to get a third party opinion...from a realtor, an inspector, or even other investors. 

Good luck!!

4Reply
See this reply in the discussion

34 Replies

Jump to latestLatest
  • Alex Capozzolo
    Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    @Sara Soleimani I am also pursuing out of state investing. My advice: connect with an investor-friendly agent (preferably one that has investment properties already) and have them be your boots on the ground. They will cover the MLS for you, and usually have good tips for off market deals. I focus more on off market, and have never used a turnkey company, but have heard they are becoming more saturated as time goes on. However, that also means that their competition is ramping things up and improving their sites. My favorite site interface is RoofStock but they are limited to certain areas. 

    Where are you planning on investing outside of CA?

    0Reply
  • Anthony Napier
    Flipper · Boise, ID · Member since 2017 · 15 posts · 25 votes
    9y
    I live in Boise Idaho. Because the market is down to a 5 day inventory of fixers I now have set up my flips in Dayton Ohio. My daughter was a realtor in Washington State while stationed there with her husband in the Air Force. Her husband is now retired and working at Wright-Patt AFB in Dayton. She suggested the Dayton area last June. I left Boise to investigate, planning to be back home in a week. I returned home 6 weeks later. The market is great here with plenty of inventory. I've been accommodating Boise Investors and flipping fixers to them. I travel every 2 weeks between Ohio and Idaho but it's worth it. Anthony
    0Reply
  • Account Closed
    Real Estate Investor · Kansas City, MO · Member since 2015 · 222 posts · 121 votes
    9y

    I'm happy to help... I'm in Kansas City, MO and have helped hundreds of investors find out of state investment properties :)

    1Reply
  • Account Closed
    Investor · Minneapolis, MN · Member since 2017 · 86 posts · 34 votes
    9y

    We use the network realwealthnetwork.com (based out of CA, incidentally!) for our out-of-state turn-key investments. It's free to belong and they offer lots of free education as well. :-)

    1Reply
  • Robert Rayford
    Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    9y

    @Sara Soleimani. I am currently making a lateral move and adding a turnkey product to our rehab business. We are in the Jacksonville, Fl and Las Vegas markets. Send me a P.M for more details . 

    0Reply
  • Maxwell Lee
    Real Estate Investor · Miami, FL · Member since 2013 · 474 posts · 214 votes
    9y

    You can find plenty of info about turnkeys, pros and cons, questions to ask, etc on this site. But to give you a broad overview:

    First, the definition. Turnkey in its true form should mean fully-rehabbed. Usually with tenant in place and PM company in-house. So with that established

    Pros - 

    1) Your work is minimal. You only need to thoroughly vet one provider, who would "replace"the realtor, GC, and PM in your team. You would also only need to manage one ongoing relationship. REI isn't 100% passive as you do always need to manage your vendors/workers to some degree.

    2) You should have a stable asset. Capex should not come into play for awhile as all major systems are brand new, and since the turnkey company did the work they should be the ideal candidate to manage the property. If they stand by their product, and if they believe they can get you a good tenant, they should also be able to handle the PM responsibilities with little no problem...in theory.

    3) Cash flow from day 1. Some turnkeys will allow you to close after tenants are placed. Which means you get rent checks as soon as you purchase the home. And you can definitely buy with a loan. If you went at it yourself, for a similar fixer upper you'd probably have to buy with cash and you wouldnt get a rent check during the rehab phase or while the property is listed for rent. Could be many months...

    Cons - 

    1) You pay a premium for the convenience of a finished product. Rarely will you be buying at a discount and some turnkeys argue that you must pay over market as your product is of better quality than what's available on the market. 

    2) If you picked a poor turnkey then they can really screw you. Definitely find a way to get a third party opinion...from a realtor, an inspector, or even other investors. 

    Good luck!!

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

    We are new to out of state investment and were wondering where to find the deals? Turnkey companies? MLS? Should we find local agents? What is the advantage and disadvantage of going with a Turnkey company? Having a team all together?

    Any advice is really appreciated! Thank you:)

    The firs thing you need to do is identify what market you want to get into. Then, you should look for true providers there. Be careful as some people throw the word "turnkey" around. Some are just agents who think the property doesn't need a lot of work and call it "turnkey" others will dump you on to a PM as soon as they make money off of the sale.

    You want a true provider who, owns the home, renovates the home, and manages the home.

    Please look at:

    How to Find the Right Turnkey Real Estate Investment Company for You

    and

    The Best Types of Markets for Profitable Turnkey Properties

    0Reply
  • Ozzy SmithPro Member
    Specialist · Dayton, OH · Member since 2014 · 352 posts · 265 votes
    9y

    @Sara Soleimani and @Alex Capozzolo

    I specialize in helping out of state investors. I'm located in Dayton Ohio but also work in Cleveland and Cincinnati markets as well. I come across great ROI and cash flow properties very regularly. I have been assisting my clients with being their eyes and ears on the ground. If you would like to talk get in touch with me, I think I can help.

    1Reply
  • Alex Capozzolo
    Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    @Ozzy Smith That is much appreciated! I am currently focusing on Philadelphia as my farm, but have heard good things about Ohio from an affordability standpoint. Keep up the good work and you will reach that 100 unit goal !

    0Reply
  • Ozzy SmithPro Member
    Specialist · Dayton, OH · Member since 2014 · 352 posts · 265 votes
    9y

    Thanks @Alex Capozzolo,  we are well on our way.  Things are happening VERY fast here.  If there is anything I can help you with let me know

    0Reply
  • Alex Capozzolo
    Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    @Ozzy Smith Right back atcha!

    0Reply
  • Todd Douglas
    Realtor · Detroit, MI · Member since 2017 · 184 posts · 33 votes
    9y

    @Sara Soleimani What Markets are you looking in? 

    My advice to you would be to find an  agent in the market you are looking to invest in. People have different connections and most investors prefer properties that are off market. I am an agent In the Michigan market, but my company holds/brokers for sellers that hold in multiple states. Any questions or concerns feel free to contact me.

    0Reply
  • Timothy Stauffer
    Wholesaler · Kansas City, MO · Member since 2016 · 129 posts · 25 votes
    9y

    Hi @Sara Soleimani have you considered Kansas City? Properties are low and has an amazing ROI. Feel free to PM me if you need any assistance.

    2Reply
  • Chris Carter
    Investor · Kansas City, MO · Member since 2017 · 49 posts · 11 votes
    9y

    @Sara Soleimani

    Hi! Kansas City is growing and you can get your hand on pretty low priced properties that can turn a 30-40% investment. PM me if you have questions. 

    2Reply
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    9y

    @Sara Soleimani

    If you want TK I would buy a renovated apartment building and get into the commercial space (5 units and over), you could start with a 5 or 6 unit in one of the cash-flowing markets mentioned in this thread. I'm in the process of rehabbing 6 units I bought on the MLS using a local team in KC. The properties are residential, a duplex and a fourplex. Property valuation is so much more straightforward for commercial, I'll only buy 5 plus units in the future.

    Podcast Guest on Show #373
    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Sara Soleimani:

    We are new to out of state investment and were wondering where to find the deals? Turnkey companies? MLS? Should we find local agents? What is the advantage and disadvantage of going with a Turnkey company? Having a team all together?

    Any advice is really appreciated! Thank you:)

     I would check here on the BP Marketplace. There are many turnkey providers, realtors & property managers who pitching products daily that are geared towards people just like yourself.

    0Reply
  • Ryan Antista
    Investor · Long Beach, CA · Member since 2016 · 33 posts · 3 votes
    9y

    @Lee Ripma I think that's a good recommendation. I also live in CA and have been looking at OOS investments. 5-6 doors sounds smart and would like to ask you a few questions. Please PM me if you are open to sharing.

    Thanks!

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    If only there were a website where you could go to review turnkey providers ... @Jay Hinrichs you wouldn't happen to know of any such site would you? :)

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @David Faulkner  I bet @Brie Schmidt  would know and she has some great pod casts from actual turn key buyers on her site that are defiantly worth listening to.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    9y

    Looks like you've decided to look outside of Long Beach! :) I responded to your other forum just a bit ago. 

    As far as going out-of-state, there are different options-

    https://www.biggerpockets.com/renewsblog/2012/12/2...

    As far as turnkeys, that article hits some pros and cons and here's some more to consider-

    https://www.biggerpockets.com/renewsblog/turnkeys-...

    I have some on turnkeys vs. BRRRR options and such, so if you are considering those let me know and I can send more.

    Hope those help.

    0Reply
  • Sara Soleimani
    OP
    Long Beach, CA · Member since 2017 · 34 posts · 13 votes
    9y

    @Ali Boone Thanks for all your advice! The Long Beach one is on behalf of my parents in law who are out of country and have sent us the money. Since they won't be able to move here in couple of years, we are buying it for them as a rental now until they will be able to move in. And since we live in LB they want to be here close to us! They are worried that the prices might go even higher. The out of state is our own investment plan ;)

    Are your BRRR options in CA? That would be great if you can share those with me. We actually did one recently (our first) in Signal Hill and we are waiting for a year to be able to cash out.

    0Reply
  • Sara Soleimani
    OP
    Long Beach, CA · Member since 2017 · 34 posts · 13 votes
    9y

    @Alex Capozzolo Thanks Alex for your advice. I am doing research on Indianapolis, Memphis, Kansas City, and Atlanta. What are your sources on the off market ones? What I have noticed is that the properties on the Turnkey providers websites are a little bit more expensive than the similar, fully rehabbed properties found on MLS listings. @Maxwell Lee comment was very helpful explaining the point of going with a Turnkey provider which I was thinking is my only reasonable option for OOS properties. But I guess I will have my options open and look everywhere to find the right property. 

    0Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 891 votes
    9y

    @Sara Soleimani The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.

    By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

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

    @Sara Soleimani The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Management, and a Real Estate Investment Brokerage in case you ever decide to sell.

    By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

    That is exactly what I was saying! 100% agree! Some of these other companies just find properties on the MLS and call it "turnkey." Misusing the word does not help people entering the game.

    3Reply
  • Alex Capozzolo
    Investor · San Diego, CA · Member since 2016 · 351 posts · 141 votes
    9y

    @Sara Soleimani That's awesome ! Best of luck hitting your goals in those areas :) 

    For off market deals, I push direct mail letters / flyers to lists pulled from List Source! Absentee Owners with some Equity is never a bad place to start

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free