Hello BP community,
Is anyone familiar with a turnkey company that I could utilize a BRRRR method with?
I have a HELOC on my primary residence but have little free time so the prospect of turnkey real estate really interests me.
What I envision is working with a company to buy a distressed property in a Midwest city and do the rehab through them all cash from the HELOC. Once rehabbed the company would place a tenant and manage the property going forward and I would refinance the property to pull all the capital back out to do again.
Is anyone familiar with a company that has a model alone these lines I could contact?
I'm just responding to keep your thread alive because I like it. ;-)
Sorry. I don't. But that sounds really cool! Have you tried just googling? That sounds like a great idea. I think I'd like to get into something like that. Maybe I will google that for my area. :-)
@Logan Halliburton First, I know of a few companies that have or are doing this, although in most cases you are not going the kind of equity to be able to get all of your cash out on a refi. I will also caution you that on these programs you are assuming a lot more risk, and very dependent on the company actually performing. I have heard more horror stories of how these have gone wrong. You have to be particularly certain of the trustworthiness and competence of the team you are working with. Make sure you have plenty of protections in place if you go this route you could get very seriously burned.
@Logan Halliburton , I'm very cynical about the idea of a Company setting itself up as a "Turnkey" Company whose promise is to "wholesale" a distressed home to you, and arrange all the subsequent rehabbing, and provide ongoing property management, and still cost you only 70% of a Lender's genuine appraisal for their re-finance, so that you'd get all your outlay back again. The usual whole-service arrangement means: you end up paying more than market value!
[A Turnkey Companies job is to not leave the customer with any equity that the market will pay for!]
I'm with @Brent Coombs .
I love the idea of leveraging the BRRRR strategy in order to generate wealth. I would argue that a Turn-Key BRRRR is almost an oxymoron.
A Turn-key investment is typically one that has already been revived back to life after coming from a distressed scenario.
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