Rental Property Investor · Brooklyn, NY · Member since 2020 · 113 posts · 25 votes
Hello Everyone,
I am looking for turnkey provider recommendations. I have a full time job and finding it challenging to hunt for deals so I decided to look into a turnkey company. I noticed there are a few out there, and was wondering if any of you have used one if so which and how was your experience?
I work full time outside of real estate as well and I recently (October 2020) bought my first investment property. I went the turnkey route and the property is out of state for me. My experience so far has been great. See my post below for more info about my purchase!
Investor · Morrison, CO · Member since 2015 · 221 posts · 177 votes
5y
@Sam Sala, I get the complexity and issue of getting started and trying to find a good solution that makes you feel good about what you're buying. Sometimes it's easy to buy a turnkey solution and you're managing a good property.
I also want to bring up, probably something you've heard before, is looking into syndication options. You can bring a selected amount to the deal (above the minimum in the fund) and be apart of a deal that is truly passive on your part.
Rental Property Investor · Brooklyn, NY · Member since 2020 · 113 posts · 25 votes
5y
@Joseph Schweizer thank you for the reply, I went through your post and I'm very interested to hear more. I have sent you a connection request. I would love to ask you a few questions if possible.
I am looking for turnkey provider recommendations. I have a full time job and finding it challenging to hunt for deals so I decided to look into a turnkey company. I noticed there are a few out there, and was wondering if any of you have used one if so which and how was your experience?
Thanks in advance.
Sam
The Cadillac of that space is REI Nation. You can use them for comparison or use them from the jump works.
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
5y
@Sam Sala I'm a big fan of a turnkey experience (full service, easy to pull the trigger, generally hands off and esp after purchase) but I like a wider range of inventory. If something isn't fully renovated and I have 12k of deferred maintenance but I'm brining that much less to close because purchase price is substantially lower and I'm financing half as much AND I have a higher cap rate.. that's a win! What returns are you hoping for? Or just seeing what's out there?
Rental Property Investor · Brooklyn, NY · Member since 2020 · 113 posts · 25 votes
5y
@Kiera Underwood Hi Kiera, I am trying to get started with property that will appreciate decently over the next few years preferably over 10%. The goal is to stack them every year and i have to have good equity in order for me to be able to accomplish that.
Handyman · Brattleboro, VT · Member since 2019 · 82 posts · 46 votes
5y
@Sam Sala. Table.Investments is an awesome quasi-turnkey company to work with on Oklahoma City. I've done a few properties with them... And it's spoiled me for the rest of the industry. Now my standards are super high because that's how they operate. Check em out
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
5y
I have purchased 3 turnkey properties in Milwaukee, Wisconsin from Storehouse 3:10 Ventures (shoutout to @Stuart Grazier). Most turnkey companies are not nearly as excellent as Storehouse, which is why their waiting list is over 2 years right now. I'm lucky because I believed in them very early on and was able to get two properties from them in 6 months before there was a waiting list! I'm happy to chat more about my experience buying turnkey and my experience with Storehouse.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
5y
Good turn key providers are rare, if not impossible to find - for a simple reason. They do all the heavy lifting, but for less than half of the profit, and without residual income. Capital is so easy to come by, that it makes sense to just get financing and hold on to them. Double the profit, growing equity and less work (not have to sell it to an investor) - why on earth would you create a cashflowing asset and then give it away for a few bucks?
One reason is they know better and only keep quality assets and sell off the rougher ones.
@Sam Sala - if you don't have the "REI bug" and you don't feel the need to chase down deals and remodel and then lease them out, you are just liking the numbers, so this makes you look for a short cut - don't do it! Because you won't succeed long term. I have seen this with so many people over the years. Selling a portfolio is not as easy as you may think, especially in low income neighborhoods, where buyers are shaky and you have to sell a house 3 times before it actually closes. Nobody is talking about that.
There are other options, like invest on a crowd funding plattform. Or if you do have the bug (and I missunderstood) then buy a property that is in good shape. Renting it out is not as hard as you think. And you can have a PM or an agent take care of that too. Just some thoughts.
Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
5y
@Sam Sala Put more focus on the deal. Every turnkey company will have their share of unhappy investors. And it's usually because they didn't do a thorough due diligence. Run the numbers, get a 3rd part inspection/appraisal, research the neighborhood (Demographics, income ranges, crime, etc.). Turnkey is not 100% hands off. There is still some effort needed on your end. If you're looking for something truly hands off, look into syndications.
I have purchased 3 turnkey properties in Milwaukee, Wisconsin from Storehouse 3:10 Ventures (shoutout to @Stuart Grazier). Most turnkey companies are not nearly as excellent as Storehouse, which is why their waiting list is over 2 years right now. I'm lucky because I believed in them very early on and was able to get two properties from them in 6 months before there was a waiting list! I'm happy to chat more about my experience buying turnkey and my experience with Storehouse.
Best of luck on your journey!
Hi Doug,
Thanks for the input, so why do you think they are the best?
@Sam Sala. Table.Investments is an awesome quasi-turnkey company to work with on Oklahoma City. I've done a few properties with them... And it's spoiled me for the rest of the industry. Now my standards are super high because that's how they operate. Check em out
Thanks for the shoutout Joseph! Remind me how long your wait was with Table? If I remember correctly there's no waitlist because there's an equal playing field created for everyone interested. First come first served on every property!
Handyman · Brattleboro, VT · Member since 2019 · 82 posts · 46 votes
5y
@Kiera Underwood No wait at all! I found just being vigilant on Wednesday morning (when the properties were released), knowing my numbers and knowing exactly what I was looking for was enough. I had it narrowed down to neighborhood and price point, then looked for that. Definitely first-come-first-served is the best way if you can set aside the time to jump fast when needed.
I keep seeing deals that they have slip away b/c I'm in the middle of three other deals rn (2 flips and 1 new build) , but as soon as I'm out I'll start jumping again.