America's Top 5 Turnkey Companies!

Logistician · Member since 2012 · 58 posts · 17 votes

Much ink has been spilled on the subject of Turnkey Companies. However, I do not think we have managed to identify top 5 Turnkey Companies in America. I know there are hundreds of companies - perhaps a good place to start would be to identify those that offer a 3-year buy back policy in the event that they do not deliver on the promises?

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Brie SchmidtBusiness Member

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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

11y

Most TK companies I have spoken with are against guarantees. It has been explained to me that they don't need to woo clients with guarantees because their product speaks for themselves. Reminds me of the Tommy Boy scene

https://www.youtube.com/watch?v=cf4C9ssuPjE

I was under contract once to buy 9 "TK" properties and what lured me in was their guarantee.... then I saw the properties and realized they had to offer a guarantee to sell them because that is the only way anybody would buy these crappy properties.

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Justin Kling
Investor · Franklin, WI · Member since 2013 · 25 posts · 11 votes
11y
I purchased a new construction duplex in Indy through Jason Hartman's company. It is great from a numbers standpoint, 2100/mo in rent for a 174K property. The builder/sales rep in Indy were terrible to deal with however (wouldn't return emails or calls, refused to get back to me about a couple of repairs). I had to find my own property mgmt co also as they quit recommending the one they were using. Overall the experience was ok, I love the property and being able to email any Qs to Jason's company and I'd love to have more of those duplexes. The builder/sales rep mess led me to try another company that builds new construction homes in Dallas, Hassle-Free Cashflow Investing with David Campbell. I picked up a couple of new construction homes that hit the 1% rule and his company already had a property mgmt co ready with tenants ready once I closed. It was a great experience. I'm busy working close to 50 hours a week so I decided to go the turn key route and I'm glad I did.
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Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
Originally posted by @Jay Hinrichs:

@Account Closed
if you were deliberately lied to from a seller of RE your remedy is the courts.
Just like if you were deliberately lied to from a stock broker your remedy is the courts.
You would Sue for rescission and if it was egregious enough Fraud.
What prompted me to write the E book for the AUssie folks was one Aussie contacted me about 6 properties he bought or six doors 4 plex in Youngstown and 2 SFR's in Detroit.
he paid 125k for the 4 plex was promised it was rehabbed and rented.. It was after sending my broker contact to do a drive by.. it was neither occupied or even rehabbed it was still sitting there apiece of poo poo never touched... easy examination of title docs revealed the TK marketer hammer in Aussie bought it for 15k and sold it for 125k and never touched it.. With Detroit houses they got rehabbed but were low end... tenants paid maybe 4 months then eviction by the time he got them back again the houses were trashed. he paid 60k each for those and they were probably 20k houses at best. He lost it all his entire savings . So I for one try to champion for the out of area folks I hate to see this happen it gives all the good people a bad name and our country as a whole..
I think the industry has cleaned itself up a lot but there are STILL scammers out there and there are still people selling 10 to 25k cash flow homes and not fully explaining how very hard they are to own and manage if you do not live within and hour of the asset and can take care of it your self.
I am dealing with Aussies as well. Not sure who over there is spewing this nonsense to these people over there but they are getting screwed and the PM's are all part of it. Scumbags all of them. The lady I have tried to help is in a bad spot. 3/4 houses are in the hood. The other is in the inner ring suburb that will make some money but she over paid for all of them
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
11y
@Scott K.
YUP standard procedures for many who sell to foreigners.. they did it in Memphis selling in the worst areas.. pretty much every city that TK lurks in there were these financial sociopaths that have riped off thousands of good people from other countries. and people from socal.
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Scott K.
Real Estate Investor · Madison Heights, MI · Member since 2014 · 693 posts · 216 votes
11y
Originally posted by @Jay Hinrichs:

@Scott K.
YUP standard procedures for many who sell to foreigners.. they did it in Memphis selling in the worst areas.. pretty much every city that TK lurks in there were these financial sociopaths that have riped off thousands of good people from other countries. and people from socal.
That's why I try to help the people from NY and CA. They come out here and I try to show them whats going on. I need to start charging for this lol.
The Assie lady went to a seminar with her friend and before she knew it she was signing up.
It does nothing to help the city of Detroit to get these people properties that will get ripped off and just dump these properties. The houses turn to garbage and now the city has even more blighted properties.
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Paul OBryan
Investor · Los Angeles, CA · Member since 2017 · 43 posts · 9 votes
9y
Very informative post. Good conversations. A lot to think about as I'm considering a TK company. Thanks all for posting.
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Marco Santarelli
Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
9y
Welcome to BiggerPockets @Paul OBryan.
Look around and jump into the conversations. The biggest thing is to ask questions.
Continued success!
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Cristian W.
Miami, FL · Member since 2015 · 30 posts · 2 votes
9y
Hey @Christy Barton , could you clarify to me how to do this direct mail? Send to whom/where?
"...Again, that was the MLS; you can find houses w/rehabs for much cheaper if you do some direct mail."
Please and thank you
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Philip Hy
Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
8y
@Jay Hinrichs @Ben Leybovich On BP, I hear many wholeheartedly recommend Memphis Invest. I don't have any reason to doubt their ability their ability to perform, but their sales rep confirmed that they do markup their repairs and services while other providers like Midsouth Homebuyers (also has a great reputation) does not mark up materials or services, and they offer a lifetime occupancy guarantee where if your property is vacant more than 90 days, they'll pay you the rent. With an offer like that, I struggle to understand why one wouldn't choose a more investor-friendly provider. This is a personal feeling, thus I'm adding it last, but the Memphis Invest sales rep was very salesy and pushed hard, felt like he was on commission. I haven't bought from Midsouth, but plan to later this year.
I do own a property with Spartan Invest in Birmingham, and I have been very impressed with their property management and communication. I am in the process of buying another. Don't know if they markup materials or services. This was my first turnkey, so at the time it didn't occur to me to ask...
If anyone has any other SPECIFIC recommendations of other providers, would love to hear.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Philip Hy its customary for Pm to mark up services ... if they don't they are marking up the asset in the first place same with the rental guarantee's.. those you want to steer clear of.. I have seen rental guarantees totally BK companies..
And just an aside if your property is vacant more than 60 days make sure you check your insurance policy you may not be covered many policy lapse on day 61... make that call you will be glad you did.
I have had numerous discussions with investors since I started funding this stuff in 2002 that lost the entire investment because they did not read their insurance policy.. and if learned it the hard way my self it happened to me personally. total loss. NO insurance.
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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
8y
Originally posted by @Philip Hy:

@Jay Hinrichs @Ben Leybovich On BP, I hear many wholeheartedly recommend Memphis Invest. I don't have any reason to doubt their ability their ability to perform, but their sales rep confirmed that they do markup their repairs and services while other providers like Midsouth Homebuyers (also has a great reputation) does not mark up materials or services, and they offer a lifetime occupancy guarantee where if your property is vacant more than 90 days, they'll pay you the rent. With an offer like that, I struggle to understand why one wouldn't choose a more investor-friendly provider. This is a personal feeling, thus I'm adding it last, but the Memphis Invest sales rep was very salesy and pushed hard, felt like he was on commission. I haven't bought from Midsouth, but plan to later this year.
I do own a property with Spartan Invest in Birmingham, and I have been very impressed with their property management and communication. I am in the process of buying another. Don't know if they markup materials or services. This was my first turnkey, so at the time it didn't occur to me to ask...
If anyone has any other SPECIFIC recommendations of other providers, would love to hear.
I don't know much about them, but some like to go with smaller companies. They are huge and some feel they may get lost in the shuffle. I would hope they do not mark up services but the property may be a bit higher. They are a business and have to make money too!
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Philip Hy
Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
8y
Jay Hinrichs thanks for the reminder on keeping insurance current when vacant more than 60 days! If someone has invested with Memphis Invest, would appreciate if you would PM me to share your experience.
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Marco Santarelli
Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
8y
@Philip Hy -- Welcome to BiggerPockets.
Sounds like you only have one property in Birmingham, which is a great market, and one we sell a lot of properties in, but it would be wise to focus on building a small footprint there first, before venturing off into a second market right now.
We also move a lot of properties in Memphis, and can talk to you about the various options there. MI is a good company but it has been my understanding for a while now that their sales price is above FMV. At least it was for a while in the past. My team could give you more insight as well.
Is there a specific market you're looking at, or are you searching around right now?
Continued success!
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