My Turnkey Experience with Real Wealth Network (RWN)

My Turnkey Experience with Real Wealth Network (RWN)

Construction Project Manager · Sycamore, IL · Member since 2015 · 91 posts · 109 votes

I've been getting a lot of inquiries about my experience with Real Wealth Network, so I figured I would post some more details on this new thread to try to answer some of your questions. 

In early 2017 I went to visit the Alabama markets of Montgomery and Huntsville with a RWN tour.  The first day we toured Huntsville, walked quite a few properties in various stages of rehab, and had a good tour of the city and different neighborhoods.  On the second day, we did the same in Montgomery.  I live in IL and it's no secret my home state has some issues, along with one of the highest property tax rates in the country.  I have a good number of local doors, but was looking to diversify a little.  The AL markets showed strong cash flows, which is what I'm looking for! 

In March 2017 I pulled the trigger and bought a house in Huntsville, and one in Montgomery through RWN's local turnkey provider, ROI Turnkey Properties. I paid mid $80k for each house and got conventional 30yr fixed loans. The rents were $850 in Montgomery, which was already rented at time of purchase, and a projected $925 rent on the Huntsville property that was vacant upon closing.

Montgomery: Shortly after I closed on the Montgomery property, I got a call from my property manager letting me know that the drain was slow to drain. After some exploration, it was determined that the sewer line from the house to the street had roots growing through it and that their estimate was $2,500-$3,000 to fix it. (not a good way to start off a turnkey experience - Right?) Well I sent an email to both RWN and ROI, explaining that this issue was probably known before I closed on the property because there were already tenants in place. Ben, my RWN adviser instructed me not to pay for the repairs, and that ROI would be on the hook for them. They did make the necessary repairs and it didn't cost me a dime!

Later in the year, I learned that the tub was cracked. The tub had a fiberglass liner over the old tub and the new one had cracked. Since ROI gives a 1 year warranty on all their rehab items, they went in and repaired that for me as well.

Huntsville: I closed on this property without a tenant, but was confident that it would be filled quickly because it was March, and we were just coming into the good lease up months. The original property management company was ok with correspondence, but as a month went by, I started to "bug" them a little more, asking how the lease up was coming. Shortly after, I got a call from ROI that they were not happy with the property management company and that they were going to switch to another company that we'll call "X" and the new company was averaging placements within 72 Hours! I was excited about that, but it took awhile for the new company to take over, and I'm left with a vacant property in the meantime. So X takes over and I'm needing to get a tenant placed soon, so I waited a week to get some details, and I called and left a message. Over the course of probably 6 weeks, I would leave voicemails, emails, texts to just about every contact I had, and I would say I got a response about 5% of the time. Finally, the 4 month mark from when I closed on the property was coming up and still nothing. So I got on Zillow to check the rental listing out and I was going to call to see what kind of service I got as a potential renter. The number listed was one of the numbers that I already had, that never called me back. So I borrowed a friends' phone with a different area code (in case they were screening my calls) and when I called the listed number, it went straight to a recording that the number was no longer listed! I was beyond pissed! I immediately called every contact I had with X and ROI, and nobody answered the phone. So I emailed everyone within the 2 companies and said that if I don't hear from anyone within 24 hours, I'm going to start screaming from the rooftops! Well, after closer to 30 hours, I still hadn't heard anything, so I sent one more email, which bluntly displayed my displeasure, demanding someone pay me at least 2 months lost rent, and firing X at the same time. I sent the email to all my contacts within X, ROI, and RWN (including Kathy Fettke). My phone started ringing within minutes this time! First it was X wondering what they needed to do to make things right. I said that I just need you to give up the keys and walk away. Jared with ROI called me shortly after, and we had a long conversation, where he was deeply apologetic, and was going through a lot of the same issues with X on his end. He instantly agreed to send me 2 months rent, and I had the check in hand a few days later. I had found a smaller, local company to take over the duties of property management, and they returned all of my correspondence very quickly, usually within minutes. I found them on BiggerPockets, and thanks @Zachary C., you and your wife were (and still are) lifesavers for me! After switching over to the new company, it was rented out within a week or two, and rent has been deposited in my account monthly. 

I have had some correspondence with ROI since then, and I know that they too have fired X for the same reasons as I did, and they are now using AHI Properties to manage their turnkeys. I did honor my contract with X for the entire one year, but as of yesterday, my Montgomery property is now managed by AHI as well. Still too early to tell how they are doing, but I know they were/are having difficulties getting any records from the old company. However, David with AHI has been very good with all correspondence so far, and at this point, I know they will be a lot better than the old company.

I highly recommend RWN , as they are a large community of investors, and they definitely had my back! Had I gone alone on the deals, I would have likely been replacing the sewer line and fixing the tub in Montgomery and wouldn't have gotten reimbursed rent from Huntsville. To clarify, I think ROI would have taken care of me, but I never would have found out who they were, had it not been for RWN. So I probably would have just bought off of the MLS from a random seller.

So where do I go from here?  I actually just bought a duplex in Huntsville on 2/15/18 with my new friends from Huntsville and I'm trying this more direct method of acquisition instead of the turnkey model.  I couldn't do it without the Cole's!  They have been through a few properties, and taken video with commentary while they walk the property and sent that to me.  I also just picked up another local (IL)deal mid February, so now I'm taking a small break to get everything running on all cylinders and build up some more cash for my next deal!

Sorry for the novel, but I wish I had something like this before I used a turnkey company, so I hope this helps!  Let me know if you have any questions, I'm happy to share!

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East Palo Alto, CA · Member since 2017 · 19 posts · 17 votes
7y

I’ve unfortunately had bad experience with Real Wealth Network. I flew to Cincinatti after being on the waiting list to purchase there for over six months. I was all ready to purchase since Missy Has such a great reputation among  members - “she is worth the wait” is what everyone said. 

I wasn’t able to buy because The woman who handled sales was on a long phone call. 

I wrote follow up emails to both Missy and the woman in charge of investor relations. I haven’t heard anything back for months  

In the meantime I lucked into a personal referral in another market and have bought a home with much better ROI.

It is apparent to me that the homes are sold at about 30,000 over the local market value. (We are talking 100,000$ homes so that’s a 30% markup and still no customer service).   The explanation provided by the affiliates is that they have done stellar rehab on the homes so they are worth the extra money    I don’t know how investors are fairing because the margins are tight at this point in the market in Ohio.  I would maybe not begrudge the profit if I hadn’t been completely ignored after taking four days to go see the area. It’s dissapointing because I love the real wealth network podcasts and what they say they are trying to do.  

We had even worse experience with their north Texas affiliate who required us to sign an exclusive contract with her prior to looking at her offerings. 

She was late to a phone appointment with my husband who observed a new post to her personal Facebook while she was running late. She did not seem to understand that home prices could possibly ever go down.   So- not every impressive.  

I really wish I had more positive information. 

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  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    8y

    Thanks for taking the time to write a thought out honest post and your good and bad experiences.  

  • Huntsville, AL · Member since 2017 · 44 posts · 31 votes
    8y
    Nice to know that people you were working with stepped up to make things right. Seems like a pretty good turnkey success story, despite its issues and frustrations.
  • Rental Property Investor · Fremont, CA · Member since 2016 · 298 posts · 222 votes
    8y

    Hi Kyle!

    Really appreciate you taking time to share your experience! Happy for you that things are looking to be improving. 

    -Gorden

  • Sylvan Springs, AL · Member since 2017 · 4 posts · 4 votes
    8y

    Kyle,

    Thanks for sharing! These are some of the nightmares that run through my mind, but it's good to know you rebounded and things worked out for you!

  • New to Real Estate · San Francisco, CA · Member since 2018 · 13 posts · 5 votes
    8y

    Thanks so much for sharing! 

  • East Palo Alto, CA · Member since 2017 · 19 posts · 17 votes
    7y

    I’ve unfortunately had bad experience with Real Wealth Network. I flew to Cincinatti after being on the waiting list to purchase there for over six months. I was all ready to purchase since Missy Has such a great reputation among  members - “she is worth the wait” is what everyone said. 

    I wasn’t able to buy because The woman who handled sales was on a long phone call. 

    I wrote follow up emails to both Missy and the woman in charge of investor relations. I haven’t heard anything back for months  

    In the meantime I lucked into a personal referral in another market and have bought a home with much better ROI.

    It is apparent to me that the homes are sold at about 30,000 over the local market value. (We are talking 100,000$ homes so that’s a 30% markup and still no customer service).   The explanation provided by the affiliates is that they have done stellar rehab on the homes so they are worth the extra money    I don’t know how investors are fairing because the margins are tight at this point in the market in Ohio.  I would maybe not begrudge the profit if I hadn’t been completely ignored after taking four days to go see the area. It’s dissapointing because I love the real wealth network podcasts and what they say they are trying to do.  

    We had even worse experience with their north Texas affiliate who required us to sign an exclusive contract with her prior to looking at her offerings. 

    She was late to a phone appointment with my husband who observed a new post to her personal Facebook while she was running late. She did not seem to understand that home prices could possibly ever go down.   So- not every impressive.  

    I really wish I had more positive information. 

  • Rental Property Investor · Aiea, HI · Member since 2016 · 33 posts · 11 votes
    7y

    @Kyle N.  I am interested in the Huntsville market and have used TK in another market but would rather find a light rehab property with good PM instead of complete TK.  Would you mind sharing who you are using for your more direct method of acquisition?  Thank you.  

  • Construction Project Manager · Sycamore, IL · Member since 2015 · 91 posts · 109 votes
    7y

    @Logan Ho, I’ve bought from a wholesaler called Local Homebuyers, AJ Cole is the guy. Google him and you can find his info. I’m currently using Astro Prperty Management, and (@Zachary C.) they have helped me find property to purchase as well. 

  • Rental Property Investor · Aiea, HI · Member since 2016 · 33 posts · 11 votes
    7y
    Originally posted by @Kyle N.:

    @Logan Ho, I’ve bought from a wholesaler called Local Homebuyers, AJ Cole is the guy. Google him and you can find his info. I’m currently using Astro Prperty Management, and (@Zachary C.) they have helped me find property to purchase as well. 

    Thank you!

  • Specialist · Jersey City, NJ · Member since 2019 · 20 posts · 4 votes
    7y

    @Kyle N. thanks for sharing post on RWN .. Kudos to @Zachary C. for been a saver to an Investor. 

     @Zachary C. I will keep you in mind for my investing helps.

    Thanks

    Sumeet

  • Member since 2018 · 1 post · 5 votes
    7y

    I set an appointment to meet with Real Wealth and they did an initial 15-minute phone call. I was told that someone would then be contacting me about the next step, investing. I called and emailed numerous times and never got a hold of anyone. I figure if they're this hard to get a response from when you have money to invest and have not yet invested, once you invest and have a problem, you'll never hear from them. I am sick of chasing this company. They give you a number but no one ever answers the phone. Even just after they call and leave a message. 

  • Real Estate Agent · San Francisco, CA · Member since 2018 · 3 posts · 2 votes
    7y

    @Kyle N. Thank you for posting this review! Good data point for me as I consider using RWN.

  • Member since 2019 · 8 posts · 4 votes
    6y

    @Kyle N. Thank you so much for sharing your experience with RWN, I'm just in the process of considering joining them. 

  • Tamar HermesPro Member
    Real Estate Coach · Austin, TX · Member since 2019 · 70 posts · 28 votes
    6y

    I can add my experience with Real Wealth Network.(RWN)  I just closed on a property in Texas.

    I like Kathy Fetke and her team a lot.  They are responsive and are there to support you.  

    As with any endeavor where you get support, nothing is free.  RWN and the affiliates get a cut on your deal. The affiliates are often the brokers and sometimes even own the properties that they recommend for you to buy.  They do make it easy for you to walk away from deals and the network carries accountability.  

    Often times they will flip a property and sell it to you as a "turnkey".  This happened to me on a property in Jacksonville, Florida. The inspection proved that the repairs were not done to my standards and I got out of the deal.

    The Texas property is brand new.  It is not yet rented and will turn out to be about to be around a 7% cash on cash return.  I don't have to do much and I am hoping to see some appreciation in the next 5 years.

    I think it is a good solution if you are nervous and want lots of support. If you have experience and can manage certain aspects on your own, it is best to find your own deals to make the most profit.  If you get a new construction, you actually get billed $2000.00 paid to RWN on closing. I did not realize this, but apparently it is in the fine print.

  • LA · Member since 2019 · 14 posts · 6 votes
    6y

    @Tamar Hermes can you please share your experience with Texas property? I am considering to buy a new property in Dallas through RWN.

  • Investor · Bay Area, CA · Member since 2014 · 165 posts · 45 votes
    6y

    @Tamar Hermes Thanks for sharing. Buying new construction would seem to eliminate risk of having to do major repairs in the near term and therefore theoretically no need for inspection.

    Did your newly constructed property come with a warranty?

    You said, "If you get a new construction, you actually get billed $2000.00 paid to RWN on closing. I did not realize this, but apparently it is in the fine print."

    Can you elaborate, what this additional fee was for? Is it some kind of commission since RWN does not get paid a normal commission for new construction?

  • Tamar HermesPro Member
    Real Estate Coach · Austin, TX · Member since 2019 · 70 posts · 28 votes
    6y

    @David S. The $2000.00 is RWN commission. In a new construction the broker doesn’t have a way to cut them into the deal so that is how it is paid. It has been over two months and my home is still not rented. I actually visited the area and it seems like there is growth happening there, but the quality of the few applicants I have gotten so far, have had low credit scores and had several large debts to previous management companies. I think ultimately the investment will be ok and it will rent. Bottom line, I think if you are very busy and don’t want to deal with finding your own people, it is an option. Since I am a seasoned investor I will likely not go this route again.

  • LA · Member since 2019 · 14 posts · 6 votes
    6y

    @Tamar Hermes thanks for the update.

  • Tamar HermesPro Member
    Real Estate Coach · Austin, TX · Member since 2019 · 70 posts · 28 votes
    6y

    @Anand Mundada. Sure thing!!

  • Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Tamar Hermes. I'm with RWN and leave for Detroit on the 2nd of Feb. Any advice.

  • Construction Project Manager · Sycamore, IL · Member since 2015 · 91 posts · 109 votes
    6y

    I completely agree with @Tamar Hermes on this working for very busy people that don’t have the time or expertise to do it on their own. For a true turn key operation, you will pay a bit of a premium, and for a lot of people it’s probably well worth it! Like anything, if you want to dive into it and do it yourself, you’ll make more money (if you do it right). There are plenty of people here on BP that are willing to help out and lend a hand to their city if you are not from there.

  • Tamar HermesPro Member
    Real Estate Coach · Austin, TX · Member since 2019 · 70 posts · 28 votes
    6y

    @Kyle N. Thanks Kyle! I see you are in Illinois. Is that where you do most of your deals?

  • Member since 2019 · 248 posts · 248 votes
    6y
    Originally posted by @Delbert Standifer:

    @Tamar Hermes. I'm with RWN and leave for Detroit on the 2nd of Feb. Any advice.

    Prepare to lose all your money 

  • Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes
    6y

    @Paul S. Why because I'm a newbie?

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    6y

    @Tamar Hermes what was the purchase and what’s the rent supposed to be? What part of Texas? 7 percent return is low. Long term you’ll probably realize you’re closer to 5, which is really bad return.

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