Turnkey Marketer, Promoter, Provider ... Margins and Value

Buying & Selling Real Estate
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Turnkey Marketer, Promoter, Provider ... Margins and Value

Cory Tuck
Professional · Topeka, KS · Member since 2016 · 29 posts · 14 votes

Does anyone have experience with how turnkeys are priced with and without a Turnkey marketer?  

I am wondering if the price of the property is typically increased because there is an additional middleman.  Or since the marketer sends a large piece of business a providers way, the marketer's investor gets discount pricing.

Thanks in advance

Cory

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    turn key marketing companies run the gamut in pricing.. but you can expect them to be in line with Real estate commissions at 6%... they double end them its not like MLS were an agent ( in this case a turn key marketer) represents the buyer and makes half the commission. As well as I don't know as I have never bought through one of these companies if they indeed have you sign the normal agency disclosures.. It for certain though that they need to be licensed on one state to do this.. and the fee's need to be paid to their brokers.. If they are just taking a referral fee under the table or on the hud and its not called a commission and its to an unlicensed marketer then they are clearly selling RE without a license and that is not legal. and if you ever had an issue you would not have their E and O to go back on or the state agency other than turning them in for SElling RE without a license.

    I know in all the wholesaler threads there is this big back and forth the pro wholesaling say baloney its just assigning an equitable interest.. but with these marketing companies if they don't own the turn key company or own the assets they are clearly selling real estate  for compensation.

    Now some of the companies were trying to charge 10K a file those companies have had a hard time finding quality product at those rates as turn key companies cant just add on the price because the appraisals will not work.

    One of the main things on this site though is the subliminal marketing as in not being straight forward that they are marketing companies there are a few on this site that just make post to get you to respond then tell you they are marketing agents.. I think some of them the way they do it would get in trouble with their state department of RE for improper advertising.. but that's their issue.

    so to that end if your working with a marketing company simply ask them to refer you to the state they are licensed in and what their license number is and make sure its current and they are working for a reputable broker.. you want that E and O protection if something go very wrong..

    unlicensed folks other than getting them in trouble will offer you no recourse monetarily.

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  • Cory Tuck
    OP
    Professional · Topeka, KS · Member since 2016 · 29 posts · 14 votes
    10y

    Thanks @Jay Hinrichs for the solid, quick response.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    NP... not a lot of mystery   some mysterious folks .. but its pretty straight forward and the guys on this site that admit to be marketers do a pretty nice job at the end of the day.  Most turn key companies employ their services as some point.. a few of the top dogs do not as they have grown organically over the years have opened offices in CA and create all the buyers they can handle in house.

    And actually some of the marketing companies struggle at times to find TK companies that will bring them inventory as they find their own buyers and do not have to cut the pie as it were and or add another level of communications etc.

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