2 Turnkey providers listing the same property???

Question

I was just browsing a couple of turnkey sites, and I noticed something strange - the same property is listed on both sites.  Is this common?

http://www.spartaninvest.com/properties/1437-highl...

http://www.noradarealestate.com/Real-Estate-Invest...  (about halfway down the page)

Even the pictures are the same between the two sites.

Anton Ivanov · Answer

@Alex Zuroff

Norada is a turnkey marketing company - they don't buy/rehab/sell properties themselves, they help other turkey companies sell their properties by providing marketing services.

There are several turnkey marketing companies out there, Norada and Maverick being the biggest, as far as I know. An easy way to tell which type of company you're looking at is if they list properties in different geographical areas - they are a marketing company. Turnkey companies typically operate in a single city or a few neighborhood cities.

Marco Santarelli · Answer

@Alex Zuroff -- Welcome to BiggerPockets.

Good observation, and good question.

Our company is BOTH a turnkey provider and promoter.

As Anton mentioned, if you're clear about the specific market you want to invest in, and you've vetted and done your due diligence on the providers, inspectors, lenders, that you want to work with, then it might make sense to work with the team you've "assembled".  The key here is knowing about their reputation, standards, and service before and after the sale.

One of the key benefits of working with the nationwide provider such as our company, is we are completely agnostic when it comes to markets, neighborhoods, providers, inspectors, etc.

If you're working directly with a local provider then all they can talk to you about, and sell you, is their own personal inventory.   This naturally creates a local-market bias.    This also makes it hard to compare apples to apples when shopping around or comparing multiple markets.

If you're a sophisticated investor with lots of real estate experience than "going it alone" may work out for you.  However, we find even experienced and sophisticated investors work with us for the extra education, counseling, and free value added service that we provide.   Think of us as an advisor and partner to help you build your real estate portfolio and achieve your financial goals.

Last but not least, there is no extra cost or disadvantage in working with a nationwide service provider such as ours. You have nothing to lose and everything to gain.  We do not charge you a dime, nor do we mark up the price of properties from our builders and local providers.  The price is exactly the same.

Hope that helps.   Feel free to contact me with any questions.

Continued success!

John Patton · Answer

Hey folks. Did anyone check to see that this home is in the Birmingham School District. Rent to much. Going rental  rate for the 3/2 in that area at best 875 to 950, not the 1150 in my humble opinion. Good luck JP

Marco Santarelli · Answer

@Todd Krzeminski @Alex Zuroff

I actually recorded a podcast episode last year that goes into some detail about the differences, as well as the pros and cons:

Turnkey Real Estate Investing Explained (PREI 004)

Continued success!

Alex Zuroff · Answer

Thank you, @Marco Santarelli.  I had a feeling you'd be chiming in soon.

Since I am a new RE investor and have no idea what markets I should be looking at, it sounds like I should be talking to you guys first.  I've heard nothing but good things about you so far on the forums, and I did notice that the price listed on your site for that property I noticed was exactly the same price listed on the Spartan Invest site.

I look forward to working with you and your team.

Anton Ivanov · Answer

@Alex Zuroff

I would say the biggest advantage of turnkey marketing companies is that they often have advisors who can give you insight into several different markets and help you pick the one that fits your goals and risk tolerance. For example, I personally know Marco who runs Norada and he is extremely knowledgable and has a lot of contacts throughout the country.

Along with advice, turnkey marketing companies also list properties from several different markets, so you can see what's available around the country. If you're a new investor and are not sure where to buy, this can be a good start.

If you already picked a market where to invest and you don't need extra step-by-step guidance, it will just be faster to find a turnkey company in that market and work with them directly.

Alex Zuroff · Answer

For some reason I was under the impression that Norada was a provider themselves.  Now I know.

What are the advantages/disadvantages with going through a marketing company like Norada vs. the TK operator directly?

Wayne Brooks · Answer

Well yes, since many of them are simply marketing co.s.  They don't do the actual acquiring, rehabbing, etc. ......they don't own the properties, they are marketing for the turnkey "operators".

Jonathan Godes · Answer

Rentometer has it going for an average of $908 a month and median of $950. Maybe you get $1,100 because it is renovated nicely, but know that you would be looking for tenants who are going to be willing to pay a 20% premium over the "average" house in the area. That might be pushing it a bit. I would run your numbers conservatively (not more than $950) and see if the deal still makes sense to you. Before you buy it is no time to be optimistic.

According to Norada's calculator (LOVE the financial tools on their website BTW), if you get $950 a month in rent you can cashflow $74 a month.

Tom Ott · Answer

Hello Alex,

For lack of a better term, those sound like "pseudo providers" They simply use the listing to their advantage and claim to have a turnkey ready to go for you, when ready they are just marketing the home.

A true turnkey provider owns the home and does the remodeling themselves. Whenever you are looking to invest in turnkey properties, always do some research on the company. Sometimes the company can be just as, if not more, important than the actual property. Some of these providers will be with you for the sale, but the head out as soon as you are the owner. They might not actually do property management.

It can be a very complicated world out there for turnkeys! Feel free to send me a message if you have any questions.

2 Turnkey providers listing the same property???

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