Turnkey provider not allowing access to new construction home?

[Geoff Bolton]

New investor here that's been using a turn key provider and I have what I hope is a newb question.  I am concerned by the fact that I have a deposit down on what's a new build construction home from a turnkey provider.   I happen to have a trip planned to the area around the time construction in targeted to complete and I asked about walking through the property.   I am being told that's not possible as a third party company is building the home and the turn key provider is also not allowed on the build site since it’s a hard hat zone and a liability.  I have never heard of a home being build where the buyer is not allowed access to construction site?   Needless to say this has the hair on the back of my neck up.   Other then walking from (unfortunately I already closed on 3 similar properties) the deal any suggestions from the BP community?   

[Chris Clothier]

Originally posted by @Geoff Bolton:

New investor here that's been using a turn key provider and I have what I hope is a newb question.  I am concerned by the fact that I have a deposit down on what's a new build construction home from a turnkey provider.   I happen to have a trip planned to the area around the time construction in targeted to complete and I asked about walking through the property.   I am being told that's not possible as a third party company is building the home and the turn key provider is also not allowed on the build site since it’s a hard hat zone and a liability.  I have never heard of a home being build where the buyer is not allowed access to construction site?   Needless to say this has the hair on the back of my neck up.   Other then walking from (unfortunately I already closed on 3 similar properties) the deal any suggestions from the BP community?   

Geoff, I read two things that do concern me about you scenario, but I wanted to ask if the three properties you already purchased were with the same company?  If so, do they have a good track record with you as far as communication and meeting your expectations?  That would probably change my thoughts a bit, but here are two things that I flagged.

1.  Placing a deposit on the property while its being built.  This is a read flag for me.  A quality company offering a turnkey service will have financial stability.  They are not going to ask or deposits on new build properties.  They may ask for earnest money once the property is completed or closer to completion, but I look at upfront money on a new build as a poor sales tactic meant to keep an investor quiet and possibly nervous of losing their money if they complain or ask questions.  

2.  If whomever you are buying this property from is not allowed on site, then who is inspecting the progress of the property?  That is a crazy statement to make and rightly does nothing but sow doubt in your mind.  We build from the ground up as well and access to properties is never an issue for us or clients.  It is the only way to manage expectations.

Lastly, there is nothing wrong with public scrutiny.  Best business practices are never improved if you never get called out for poor ones.  I respect you for allowing them time to get you a better answer.  Hopefully you get one quickly, but understand that having your business practices discussed in public is not always a bad thing.  A strong company will take responsibility for mistakes or have solid responses as to why they operate the way they operate.  Either way, don't wait too long to react.  If they are not inspecting the project, then you need to.