How to find a turn-key provider?

Question

Has anyone found a good turn-key provider that they can trust and the numbers seem to be close to what they say? if so would you recommend them?

If you have met a turn-key provider how did you learn to trust their numbers and what they said?

Thanks in advance,

Henry

Engelo Rumora · Answer

Thanks for the mention Caleb,

Much appreciated

Tom Ott · Answer

There are plenty of us out there. Which market are you looking at? Sometimes if you pick a market first, it is easier to find who operates in that area.

As part of your research, try looking at:

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

The Best Types of Markets for Profitable Turnkey Properties

and

What to Ask When Working With a Turnkey Provider

Martin Sterling · Answer

I know several turn key property providers.

I met them in my local REIA groups. I built relationships with them over months and years and have relationships with those they do business with. I suggest the same for your journey.

Nothing beats real life relationships.

If it's out of state, I'd suggest building relationships with people who own properties through that provider. Over time of building a relationship with them, you'll hear the good, bad and ugly.

I don't think it's smart to jump into any major commitment without a reasonably long period of relationship building and regular contact.

I'm not a fan of those large national turn-key property providers marketing everywhere. I've heard many nightmares of management issues. For example, management not treating tenants in an ethical way (not repairing air conditioning when they were supposed to, or not repairing plumbing or other major issues in a timely manner.)

I've also heard some stories of success too, so I say be very cautious.

Ali Boone · Answer

I've always bought turnkeys and can tell you people I know investors have had good experiences with if you want to direct message me.

It's not about learning to trust anyone's numbers. You shouldn't try to figure out how to trust anything anyone tells you in this industry. It's about learning how to verify the numbers you are given. That's much more concrete and measurable than learning trust. Verifying numbers is pretty straightforward- check tax assessor info for property taxes, get an insurance quote, contact a 3rd party property management company and see what they'd guess as being a realistic rent income, etc.

Jeff Schechter · Answer

Hey @Henry D West,

Great questions...  we're out there.   Some suggestions...

1.  Do they operate in the market(s) you want to be in?

2.  Do they show all realistic expenses on their pro-formas?

3.  Do they offer a warranty on their rehabs?

4.  Do they own/control their own property management?

5.  Can you go see/meet them and their team?

6.  Are they selling only finished properties that have been inspected?

7.  Can you have direct conversations with them via telephone?

8.  Are they the actual TK doing the work, or are they just marketing another rehabber's/PM's property?

Once you ask the above questions, there won't be that many left standing.  From there, just do your due diligence, and you'll be ahead of most investors that go down this path.

Good luck!

James Wise · Answer

If you stick to the bigger names / more established brands in the industry you will be more likely avoid things like false advertising.

Super important to note that real estate is a people business though. Spreadsheets are only going to get you so far. This business has an unlimited amount of variables. If you have say 1 SFR you go from 100 to 0 just like that. Numbers should be seen as a long term average of certain properties in a similar class and market. Not an exact science over the short term with a small sample size.

How to find a turn-key provider?

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