Rent To Retirement How Does It Really Work?

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Rent To Retirement How Does It Really Work?

Austin Shade
Rental Property Investor · Pomona, CA · Member since 2021 · 20 posts · 38 votes

Hi there, My name is Austin I’m new to the Bigger Pockets world and I’m looking to buy my first property this year within the next 6 months if possible. I’m 23 years old I’ve been saving money for a property since I was 17. I live in Southern California where the market is extremely saturated, prices are high, and cash flow is extremely difficult. I have enough money to get something out here but the numbers make more sense out of state and there are more cash flow properties in places like Florida,

Missouri, Ohio, and Alabama etc. So I’ve come to the conclusion that It would be the smartest move to buy a property in another state and continue to live here in California. My question is in regards to the service that Bigger Pockets always promotes on every podcast, Rent to Retirement. So I understand they are turnkey properties and I recently just learned what that means, but I started doing my research on new construction homes in Florida and I really like them I found a good price and it says it would cash flow $359/month or $4,308/annually. I found this to be amazing and I have my sights locked on this property, but then I was on YouTube yesterday on the Bigger Pockets channel looking for a video where they went more in depth over this service. I didn’t find that, but I did find a video basically going over the risks and dangers of getting into turn key real estate. Now I am in no way questioning the integrity of Bigger Pockets, but I’m new into real estate and I’m trying to educate and make informed decisions. So my question is Is Rent To Retirement a smart investment? Or Should I buy a piece of property on my own terms and renovate it and all that? Are they a legit service? Are there hidden fees? Should a turnkey be my first buy? What are the PROS & CONS of using this service? Also am I in charge of getting tenants or do they do that as well? In the video Brandon was saying you can’t trust turnkey companies numbers and I sat down and crunch the numbers and it all came together. I guess all I’m asking for is some guidance. I’m really excited to jump head first into real estate and take it head on but I just don’t want to make a move with a lack of understanding of this specific service. Any help or guidance would be greatly appreciated

-Austin Shade

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Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
5y

@Austin Shade

Yes, we are a legit service.  I'm not sure what you mean by this, or what videos you are referring to by our team, or by any others.  We have hundreds of positive reviews from clients that have worked with us if you do some research on this site, and we've helped hundreds of investors build very successful rental portfolios for many years.  I've included some links for you below that show some of this discussion on the forums already that would be good to reach through.  @Joseph Schweizer can you provide some insight here.  

We do have FL new builds that are available, and probably one of the best TK investments for a newbie by going with a new build.  Whether or not going TK for your first property is completely a decision you need to make based on your investments goals, experience level, resources available, time you want to be involved, areas you want to invest in, etc.  

The most successful investors invest in the markets where they can get the best returns, and should be diversified across multiple markets. Regardless of where you invest it is essential that you have the right team to assist you in building a successful portfolio. It doesn't really matter if you start locally, or not. The main point is that you get started. If your local market is so expensive that it will take you years to save up for a downpayment then I would highly encourage you to look at a market you can invest in sooner. If it takes you multiple years to save up money to invest those are valuable years lost of cash flow, tax benefits/depreciation, appreciation & debt reduction by the tenant paying the loan down. It's also years lost of education, which is the most valuable resource to help you be successful long term. If you truly want to invest locally, but don't have the capital to then use real estate investing out of state to help you build equity over time & save up your cash flow to invest locally. Just my two cents on the matter. We look forward to connecting with you!

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/users/ZacharyCole/references

[email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
Rent To Retirement5334 Reviews
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  • Kruse Collins
    New to Real Estate · Vineyard, UT · Member since 2021 · 3 posts · 8 votes
    4y

    I've been going through the process with the team and I think something that will make you confident in whatever you choose with them is running the numbers yourself. I'd also reach out to real estate agents in the areas you are looking at specific properties and show them the turn key deal you're looking at and they can do a great job at confirming or not confirming if that property would really rent for what they're saying. Real estate agents also have good insights on whether the property is in a good neighborhood, city, etc. 

    I've found a property through rent to retirement that checks my boxes and checks out from what I've talked through with agents local to that area. The team at Rent to Retirement has been very helpful in the process as well!

    7Reply
  • Adam Sieg
    Member since 2022 · 48 posts · 119 votes
    4y
    Quote from @Kruse Collins:

    I've been going through the process with the team and I think something that will make you confident in whatever you choose with them is running the numbers yourself. I'd also reach out to real estate agents in the areas you are looking at specific properties and show them the turn key deal you're looking at and they can do a great job at confirming or not confirming if that property would really rent for what they're saying. Real estate agents also have good insights on whether the property is in a good neighborhood, city, etc. 

    I've found a property through rent to retirement that checks my boxes and checks out from what I've talked through with agents local to that area. The team at Rent to Retirement has been very helpful in the process as well!


     These are great advice and recommend adhering. Coming frI’m a previous purchaser of multiple properties I’ve yet to have a property that doesn’t appraise for the purchase price, not rent for price advertised or honestly perform poorly.  the only property we may have had issues with was related to the PM company but Zach lemaster assisted in getting us payment as well as helping find a new PM company. 
    there are always risks with rental properties no matter who you purchase through but R2R have demonstrated their reliability to us. 

    3Reply
  • Alex Gerondale
    Member since 2023 · 10 posts · 7 votes
    3y
    Quote from @Ali Boone:

    Just to put some clarification in here, Austin... the questions you're asking are really a mix of different questions. If I'm understanding right, you're first asking about the turnkey strategy as a whole, and whether you should do that or do a property yourself. For help on that question, check out this article-

    https://www.biggerpockets.com/...

    Then there's a clarification about different kinds of turnkey companies, because who is who matters for understanding who/what to do your due diligence on. You said "is Rent to Retirement" a smart investment? That again goes to the previous question... you're actually asking if turnkeys are a smart investment... but then if you decide to pursue turnkeys, you need to understand the difference between a direct turnkey provider and a turnkey marketing company. RtoR is a marketing company, as are many good companies, so they aren't the one who is directly selling you the property. They're merely connecting you with the company (direct provider) who does. That simply matters so you know where to direct your due diligence focus. Yes, research RtoR and learn about them and see if you want to work with them, but they aren't the one selling you the property, so don't stop your due diligence there.

    Yes, absolutely run your own numbers. You should always verify everything for yourself and don't take anyone's word for anything.

    As far as whether turnkeys are a good strategy or not... I've been buying turnkeys since 2011 (not through Rent to Retirement) and I wouldn't choose any other strategy! They aren't perfect, nor is any strategy, but they fit for exactly how I like to do things.

    Hope that helps. The biggest thing is--separate out the questions you're asking into their specific categories so you can better and more easily figure it all out.


     Hello Ali, just curious as to which TK companies you work with. I would like to compare and contrast different teams before I make the final call for who I work with.

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    3y
    Quote from @Alex Gerondale:
    Quote from @Ali Boone:

    Just to put some clarification in here, Austin... the questions you're asking are really a mix of different questions. If I'm understanding right, you're first asking about the turnkey strategy as a whole, and whether you should do that or do a property yourself. For help on that question, check out this article-

    https://www.biggerpockets.com/...

    Then there's a clarification about different kinds of turnkey companies, because who is who matters for understanding who/what to do your due diligence on. You said "is Rent to Retirement" a smart investment? That again goes to the previous question... you're actually asking if turnkeys are a smart investment... but then if you decide to pursue turnkeys, you need to understand the difference between a direct turnkey provider and a turnkey marketing company. RtoR is a marketing company, as are many good companies, so they aren't the one who is directly selling you the property. They're merely connecting you with the company (direct provider) who does. That simply matters so you know where to direct your due diligence focus. Yes, research RtoR and learn about them and see if you want to work with them, but they aren't the one selling you the property, so don't stop your due diligence there.

    Yes, absolutely run your own numbers. You should always verify everything for yourself and don't take anyone's word for anything.

    As far as whether turnkeys are a good strategy or not... I've been buying turnkeys since 2011 (not through Rent to Retirement) and I wouldn't choose any other strategy! They aren't perfect, nor is any strategy, but they fit for exactly how I like to do things.

    Hope that helps. The biggest thing is--separate out the questions you're asking into their specific categories so you can better and more easily figure it all out.


     Hello Ali, just curious as to which TK companies you work with. I would like to compare and contrast different teams before I make the final call for who I work with.


    Sure, anytime. Can you shoot me a message?
    0Reply
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