Real Estate Investing Companies

Rental Property Investor · New Hartford, CT · Member since 2019 · 5 posts · 0 votes

Just curious about everyone’s thoughts on Turnkey Real Estate Investing companies like Smart Invest in Birmingham, AL?
Does anyone have any experience with them? It actually sounds too good to be true but before I reach out to them I just wanted to hear from the BiggerPockets community before I do.
They state that they find the home, rehab it, find the tenant and get the investor in touch with the lender. I am sure there is probably a fee and commission paid to the company as well.

Thank you. Any feedback would be welcomed.

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Joseph Crunkilton

Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes

@Claudia Adams

I would highly recommend reaching out to @Zach Lemaster over at Rent to Retirement. They focus on turnkey ready properties in markets with high cashflow and appreciation.

I recently just closed on a property with them. What impressed me was the ease of closing, quality of property and returns on my investment. If you're looking at turnkey providers, you need to give them a look.

Feel free to PM me and I can elaborate on my experience.

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Jason CoryPro Member
Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
6y
@Claudia Adams I am in Birmingham. I haven't ever heard of the company. It doesn't mean they don't exist or can't deliver what you said. Continue to do your due diligence.
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Joseph Crunkilton
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
6y
@Claudia Adams

I would highly recommend reaching out to @Zach Lemaster over at Rent to Retirement. They focus on turnkey ready properties in markets with high cashflow and appreciation.
I recently just closed on a property with them. What impressed me was the ease of closing, quality of property and returns on my investment. If you're looking at turnkey providers, you need to give them a look.
Feel free to PM me and I can elaborate on my experience.
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Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
6y
@Joseph Crunkilton Thank you for the shout out!

@Claudia Adams

Please let me know if you have any questions on anything. I typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer. Please let me know if this is something you would like to schedule.

Also for your reference, here are some other forum discussions from investors that have worked with us in the past like Joseph. I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/users/ZacharyCole/references

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/users/ZacharyCole/references

[email protected]800-311-6781 Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
Rent To Retirement5334 Reviews
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Ayyub Omer
Member since 2020 · 18 posts · 8 votes
6y

@Claudia Adams
I don't think turnkeys are too good to be true, but rather a trade off that might make sense depending on the situation. If you want to know the positive aspects of turnkey you can ask any turnkey provider, so I'll just state some of the negative factors you might be overlooking:
1- You probably won't be able to sell the property for what you bought it for. You'll need to hold for a few years just to recuperate negative equity plus closing costs. Many turnkey companies will tell you this themselves, that this needs to be a long term investment or something like that.The property might appraise, but you probably won't be able to sell it for appraisal price without the marketing apparatus that the turnkey company has.Sometimes you might be lucky, and with high end turnkey properties you have a better chance of selling to owner occupants as well, but this is often the case.
2- The pro forma is a snapshot of a performing month, and there will also be many non-performing months. These properties are usually in worse areas too, at least the cheaper ones, which means a worse tenant who will be harder on your property. So expenses will generally be higher than what you see in the proforma. Again, the turnkey company will probably tell you about this, but sometimes as investors we tend not to notice.
3- You won't learn as much. This isn't a big problem if you only ever intend on buying one or two properties, but if you're interested in real estate long term then the educational benefits of doing it yourself can't be ignored.
That being said, people have made a lot of money buying turnkey, but just be aware that there are people who've lost money or who've just been breaking even as well.
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