Selling a Turnkey Property

8 Replies

Just out of curiosity has anyone bought a TK and in the months afterward needed to sell for financial or other reason? 

If so, what way did you go about it and where did you market?

Thanks!

not a good idea you will loose money It can take years for a turnkey to appreciate enough where you might break even http://turnkey-reviews.com/

This might be a good place to start if you want to sell your property There are multiple threads on BP about turnkey investor's not being able to get their money out even after some years  


Originally posted by @Adam Widdicombe :

Just out of curiosity has anyone bought a TK and in the months afterward needed to sell for financial or other reason? 

If so, what way did you go about it and where did you market?

Thanks!

 Never have and generally paying retail for run of the mill sfr and selling same year limits exit to loss unless in a hot pocket or very strong sellers market turnkey or not.

Most turnkeys ( bp variety) have that part built in as they are typically not in hot pockets. Many I have checked were worth more or same inflation adjusted 15 years ago. When you add sellers cost and get sell ready condition cost, forget about it. 

And also since we are now in fully recovered market (top?)buying TK today, and selling shortly after is almost always going to be no bueno, hot pockets excluded.  

Location still matters. Good luck!

@Matt R. - I agree! You are on spot. A picture worth more than words. First 13 years local investor had property.

If someone were to need to sell their TK that fast after buying it (hopefully that's not the case), I'd encourage them to first go back to the TK seller and ask if they are interested in it. They could likely buy it back at similar cost and resell it to someone in their buyer's list for higher. If they aren't willing to buy it back, they may have recommendations for who to work with on it. Otherwise, I'd talk to wholesalers and agents in the area and see what people can offer for possible sales leads.

@Adam Widdicombe , we had client in this scenario right here on BP a couple of years ago.  It happens so I would approach it like this.  In such a short period of time, the TK company you worked with should be willing to work with you and help you move your property.  Whether it is back into their portfolio or to another investor.  I would suggest like @Ali Boone that you go to them first and see how they can help you.  Hopefully, it is performing as you expected and therefore should have the same value for another investor that it had for you.  

Best - 

any real estate bought at market will garner a loss if sold a few months or even a few years after buying it. if there Is no appreciation there is going to be a loss.. don't care what how or were you bought it.

only way you break even is if you bought said real estate way under market or like some markets the values jumped 10% or greater in the preceding year.

Originally posted by @Adam Widdicombe :

Just out of curiosity has anyone bought a TK and in the months afterward needed to sell for financial or other reason? 

If so, what way did you go about it and where did you market?

Thanks!

 If the tenants are still there you want to see if the turnkey company is a brokerage. If yes have them sell it for you as they will maximize your exit price. If the tenants are gone an agent who handles the more traditional residential side of the business may be the better option.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

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