Where are the good turnkey providers?

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Where are the good turnkey providers?

Kevin Drouillard
Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes

Hello BP,

I'm on the hunt for a good turnkey provider. Does anyone have any recommendations for one? I looked into Kansas City and Chicago, but I'm open to suggestions. I've spoken to and interviewed alot. I've been under contract with one in Chicago, but I backed out of that one because of appraisal disagreements. I've been in contact with one in KC, but it's been a little slow to actually take off. KC seems to be a good one with houses ranging from $50k-100k and renting decently. After about a year of researching, I'm ready to really move forward. I have enough in savings to buy maybe 2 or 3 properties, depending on the price of course. I understand doing it myself would be best, but I do feel strongly that a good turnkey provider is a good way to start. Since I'm in NYC, out of state is most likely a must (because of the lower cost of entry).

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

@Kevin Drouillard Is that the range you are looking for $50-100k? Personally, as an OOS investor myself, I'd avoid the lower end of that range, and go for properties $75k and up, as these will tend to be in areas with better overall results, and easier to finance.

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    9y
    I like Memphis personally. If you want more info on TK there just PM me
    1Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    9y

    @Kevin Drouillard Is that the range you are looking for $50-100k? Personally, as an OOS investor myself, I'd avoid the lower end of that range, and go for properties $75k and up, as these will tend to be in areas with better overall results, and easier to finance.

    5Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Kevin Drouillard Good to hear you looked at chicago because I am confident in the investment opportunity long term for buyers in Chicago. No matter where you buy, do your research on the property management that will support your investment for years to come. In Chicago, always get second opinion on the blocks you are buying on. I am happy to give you my opinion, based on our experience, on any Chicago options you are reviewing. 

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

    Hello BP,

    I'm on the hunt for a good turnkey provider. Does anyone have any recommendations for one? I looked into Kansas City and Chicago, but I'm open to suggestions. I've spoken to and interviewed alot. I've been under contract with one in Chicago, but I backed out of that one because of appraisal disagreements. I've been in contact with one in KC, but it's been a little slow to actually take off. KC seems to be a good one with houses ranging from $50k-100k and renting decently. After about a year of researching, I'm ready to really move forward. I have enough in savings to buy maybe 2 or 3 properties, depending on the price of course. I understand doing it myself would be best, but I do feel strongly that a good turnkey provider is a good way to start. Since I'm in NYC, out of state is most likely a must (because of the lower cost of entry).

    Turnkey is a great way to go when investing out of state. In the markets you are looking for, I do not know of any specific companies, but I would check out: 

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

    or

    What to Ask When Working With a Turnkey Provider

    Those will at least get you started. 

    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    9y

     I recommend you check out the website established by @Brie Schmidt for evaluation of Turn Key providers.  

    312-681-7487
    1Reply
  • Andrew C.
    Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
    9y

    @Kevin Drouillard I'm also from NYC and decided to invest out-of-state.  I decided on a provider in Kansas City, MO.  The market is a lot more competitive now compared to when I bought 2 years ago though but there should still be some decent deals to be found.  Feel free to PM me.

    I also agree with @Crystal Smith that you should check out the website: 

    http://turnkey-reviews.com/

    1Reply
  • Sean Tagge
    Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    9y

    Hello @Kevin Drouillard, 

    We are one of the largest Turnkey Providers in Memphis TN. We are looking to sell 250-300 turnkey properties this year. We would be delighted to discuss with you the Memphis market and why investing here makes sense. Feel free to reach out to me or my partner @James Wachob with any questions you have about turnkey properties. 

    Best, 

    Sean Tagge

    0Reply
  • Rachel Bier
    Investor · Napa, CA · Member since 2016 · 77 posts · 80 votes
    9y

    We've bought several turnkey properties in KC, I'm happy to share our experiences if you send me a PM

    4Reply
  • Rashard Alomari
    Investor · Memphis, TN · Member since 2016 · 215 posts · 128 votes
    9y
    Memphis is a phenomenal market! Very versatile and the COC returns are heavy. Welcome aboard! Rashard Alomari
    0Reply
  • Jason Hopkins
    Investor · Memphis, TN · Member since 2016 · 549 posts · 286 votes
    9y

    There are a lot of good TK providers in Memphis.  I would suggest reaching out to @Douglas Skipworth and @James Wachob  There have a good reputation in the city.

    2Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Kevin Drouillard:

    Hello BP,

    I'm on the hunt for a good turnkey provider. Does anyone have any recommendations for one? I looked into Kansas City and Chicago, but I'm open to suggestions. I've spoken to and interviewed alot. I've been under contract with one in Chicago, but I backed out of that one because of appraisal disagreements. I've been in contact with one in KC, but it's been a little slow to actually take off. KC seems to be a good one with houses ranging from $50k-100k and renting decently. After about a year of researching, I'm ready to really move forward. I have enough in savings to buy maybe 2 or 3 properties, depending on the price of course. I understand doing it myself would be best, but I do feel strongly that a good turnkey provider is a good way to start. Since I'm in NYC, out of state is most likely a must (because of the lower cost of entry).

     The markets most represented here on BP by turnkey providers are Memphis, Indy & Cleveland. If you setup a keyword alert for turnkey you will quickly see who the major players are in those markets.

    Good luck in your search.

    1Reply
  • Jamal Page
    New to Real Estate · Lawrenceville, GA · Member since 2017 · 16 posts · 4 votes
    9y
    Mark Ainley I would like your thoughts on a neighborhood. 105th - 107th block of Green. Area code 60643.
    0Reply
  • Kevin Drouillard
    OP
    Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes
    9y

    @James Wise , yes I realized Memphis is super hot on BP. It's so interesting because I thought it was Kansas City or Indianapolis. I will be reaching out to the folks that told me about Memphis.

    1Reply
  • Jessie Nunley
    Springfield, MO · Member since 2017 · 158 posts · 114 votes
    9y

    @Kevin Drouillard do you know of any turnkey companies that do anything other than cash?

    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    9y
    Kevin Drouillard look homie in this sellers market it makes more sense for Tkps to just sell to retail. I was buying these things a few years a ago and it was pretty sweet back then but now margin are so thin. If they are telling you that you are going to cashflow few hundred a month I will show you how to property underwrite like a real investor and not a salesman.
    1Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Jamal Page I will send you a PM on your question. Thanks for reaching out. 

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61078 Reviews
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    0Reply
  • Andrew Hargreave
    Rental Property Investor · Shorewood, IL · Member since 2016 · 80 posts · 46 votes
    9y

    @Kevin Drouillard, if you're looking for a great Chicago turnkey provider, let me plug @Mark Ainley and his company GCRealty.   We purchased from Mark and Bryan back in Dec 2016 and have been extremely happy with their level of service and responsiveness.  The rehab work was high quality and they've handled any repair requests, rent collect, etc (like they're supposed to) which has made this a passive investment opportunity which is what my wife and I needed.  We both have full time jobs and 3 kids in college (well, one just graduated) so we don't have a lot of time to spend on managing everything at this point.  Feel free to PM is you'd like more information.

    0Reply
  • John B.
    Chicago, IL · Member since 2017 · 46 posts · 20 votes
    9y

    @Lane Kawaoka are you effectively saying that you wouldn't recommend for a new investor to go into a full TK solution?

    I've been looking at a few properties analysis on various TK websites and many times I see an inflated cashflow because expenses seem a bit lower (e.g. few seem to take into consideration long term capex expenses), without even counting the exit strategy (I read on a few threads on BP that people got burned when they wanted to sell their property they bought at retail value from the provider in one of these markets since they couldn't find a buyer. Still, if CF is positive, as a 10+ y long term investment it might still make sense?). Is that what you are referring to with "underwrite like a salesman" or is there more?

    Even adjusting the expenses and make them higher (~50-60% rental), some opportunities still seem decent, especially if one allocates a smaller portion of his/her portfolio, for diversification so to speak.

    Thanks

    0Reply
  • Isaac Shikwana
    Investor · Sylvania, OH · Member since 2017 · 9 posts · 12 votes
    9y
    Have you looked into Ohio? Toledo is a good market for rentals. Also you should check out turnkey-reviews.com
    2Reply
  • Vivek Khoche
    Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    9y

    @John B. - What is important is you win when you buy, more important is how to sell. Tenant quality, foreclosure of house next door and neighborhood turning into war zones is beyond anybody's control.

    Happy Investing

    Vivek

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    9y
    Originally posted by @Kevin Drouillard:

    Hello BP,

    I'm on the hunt for a good turnkey provider. Does anyone have any recommendations for one? I looked into Kansas City and Chicago, but I'm open to suggestions. I've spoken to and interviewed alot. I've been under contract with one in Chicago, but I backed out of that one because of appraisal disagreements. I've been in contact with one in KC, but it's been a little slow to actually take off. KC seems to be a good one with houses ranging from $50k-100k and renting decently. After about a year of researching, I'm ready to really move forward. I have enough in savings to buy maybe 2 or 3 properties, depending on the price of course. I understand doing it myself would be best, but I do feel strongly that a good turnkey provider is a good way to start. Since I'm in NYC, out of state is most likely a must (because of the lower cost of entry).

    Good turnkey providers are hard to find.

    Really hammer down on the due diligence phase and take as much time as needed before deciding.

    I'd suggest choosing the "right team" over choosing the "right market".

    Thanks and much success

    Podcast Guest on Show #89
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    5Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
    9y

    @Jason Hopkins thanks for the shout out! 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
  • Ritch Bonisa
    Specialist · Indianapolis, IN · Member since 2016 · 841 posts · 480 votes
    9y

    I agree with @Engelo Rumora.  You don't even have to go TK if you have the right team in place.  It can be done independently at wholesale pick up prices.

    1Reply
  • Vivek Khoche
    Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    9y

    @Kevin Drouillard - I would suggest to research more and expand your criteria beyond TK/No TK or market specific. Just finished talking to my Private Mortgage Banker of Leaders Club Member and discussed his REI investments in a market never heard of $170K brand new house appraised for $190K. There is nothing specific happening in so called cashflow market pickup a table and roll your dice.

    "Education is what you get by learning from others. Experience is what you get by not learning from others."

    Happy Investing

    Vivek

    0Reply
  • Kevin Drouillard
    OP
    Investor · Brooklyn, NY · Member since 2016 · 50 posts · 25 votes
    9y

    Thank you guys for all your helpful responses. I finally am going with a company that's called USREEB, and have managed to put 3 properties under contract,  all of which are in C neighborhoods.

    Yes, I wholeheartedly agree, its the TEAM that matters! , @James Wachob , @Engelo Rumora @Ritch Bonisa

    This company does have a lot of inhouse teams, which is great. I gotta see if they have their own brokerage though. 

    It seems Memphis is also a very good Market, so I'm going to have to check into that if this doesn't work, or for my next investment venture. Like @Gianluca B. said,  it's the long term aspect that is appealing to me. I really am thinking 10+ years, and would just rather not overpay for something, like I was about to do in Chicago. I understand TurnKeys tend to be overpriced, but with the whole idea of keeping them long-term, I feel that they can potentially pay off.  hopefully, I have luck with this one and am successful investing with this company.  I will be researching a lot of your recommendations though.  

    2Reply
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