to use "Turn-Key" providers or not?

Question

forgive me for asking but I'm new to BP and new to investing. I'm sure this has been discussed a million times on the forum. I have almost no time to spend on my infant real estate investing career so I am looking for extremely passive income. I am convinced real estate is the best way to build long term wealth. However, I don't want to get screwed or be "that chump from Socal" who the house flipper from the mid-west took advantage of. What should I do?

Account Closed · Answer

Thee are plenty of areas in California that can provide the same or better results then the midwest. Is the lure of the $30000 "pigs" calling you to the midwest

https://www.biggerpockets.com/forums/311/topics/24...

Tom Ott · Answer

Hello Jayson,

First off, I'd like to say welcome to the world of REI. It seems like you are on the right path in terms of ideas. You sound like you know what you want, just unsure of where to start.

It sounds like with everything you have going on, turnkey investment might be the way to go!

One of the best options for someone like you is investing in turnkey properties. For example, our company rehabs homes and sells them to investors. We also manage them so you do not have to worry about it. It becomes just like any other investment for you. It is a better way of buying and holding. We manage everything from tenant vetting to maintenance.

In terms of markets, I can tell you right now the Midwest is booming. Many people moved out to the costs and Texas a few years ago and real estate took off. It really took off in prices. Homes are very expensive out there now. The Midwest is now starting to see a similar boom, but the real estate is still very affordable!

We have been seeing a large influx of investors in Cleveland. Many people from out of state are buying and holding in the area. They are almost never vacant as well!

We are in Cleveland and things are really booming!

Message me if you have any questions.

Ali Boone · Answer

Sure. Shoot me a PM or an email.

Jayson Trierweiler · Answer

thanks!

Ali Boone · Answer

Lol. I love your post! Your phrasing is awesome.

The answer to your question is--make sure you're working with the right guys. How to find the right guys? Networking.

I live in Venice and have always bought turnkeys, and I can vouch that there are good ones and bad ones. But once you are in with the good guys, you're in.

Steve Haight · Answer

@Jayson Trierweiler

We are neighbors. Have a friend in Carlsbad, nice place to live. Not sure what you are looking at? Are you a first time investor and thinking of investing long distance? If any advice I can give no matter what real estate deal near or far, verify everything!! I have always been a land investor as I never deal with leaky toilets. Read my bio, if you like reach out maybe I can provide you with a connection or info that may help guide your ship.

Happy Investing

Larry Fried · Answer

@Jayson TrierweilerHi and welcome to BP! As a turnkey buyer myself, I suggest one thing you might consider in choosing a market to invest in, is it a place you would actually like to visit, because travel there you should before closing on your first property.  You should get to tour neighborhoods and properties and meet with the turnkey provider(s) you are considering working with.  Now, after the first purchase and building trust with the provider and the all important PM, it may not be necessary to travel there for additional purchases, but do get an independent inspection.  Just my 02 cents!

Curt Davis · Answer

If like you said your looking for the least amount of hands on and you dont have time to be as involved as you like then it does seem like you might seek the services of a TK provider.  The hard part for you will be deciding what market and provider to go with.  You will surely be inundated with TK providers here telling you how great their market is or get info from affiliate marketing people who will want to refer you to a TK provider for a hefty fee.  I am surprised I have not yet seen the repeat offenders chime in yet.

You can use sites like TK reviews as just one tool for reviewing markets and companies.  Also ask around.  You will probably find the best cash flow in Midwest markets, that is primarily why investors buy here for the purchase price to cash flow ratio.

Good luck as this is not an easy choice.  The higher price you can afford the better off in general you will do long term.

Jayson Trierweiler · Answer

@ Steven Picker

There are many reasons I'm looking at the mid-west and the south. Mostly the ratios, land lord friendliness, taxes, etc. Not necessarily the 30k pigs.

to use "Turn-Key" providers or not?

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