Seeking recommendations for Turnkey Promoters

Multi-Family and Apartment Investing
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Seeking recommendations for Turnkey Promoters

Account Closed
Woodside, NY · Member since 2018 · 7 posts · 1 vote

I'm a new investor looking to find a good turnkey promoter for multifamily residences and apartment complexes. Does anyone have recommendations for (or warnings about) promoters you've worked with?

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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
I have not seen any turnkey promoters who really deal with multifamily. I know some providers that deal with multifamily but that’s really about it. Is there a reason you want to use a promoter? A turnkey provider makes money on the final sale to you, a promoter makes money on referrals when someone like you buys a house from one of the providers they recommend to you. It’s extremely similar in how they make money.
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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    I have not seen any turnkey promoters who really deal with multifamily. I know some providers that deal with multifamily but that’s really about it. Is there a reason you want to use a promoter? A turnkey provider makes money on the final sale to you, a promoter makes money on referrals when someone like you buys a house from one of the providers they recommend to you. It’s extremely similar in how they make money.
    1Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    There aren't necessarily going to be turnkey promoters, or even turnkey providers at all, on apartment complexes. And when you say MFRs, I don't know if you mean residential MFRs or commercial ones. There aren't turnkey providers for commercial properties because turnkey providers...the turnkey companies (versus just someone selling a turnkey-condition property) work in bulk. They buy and sell a lot of houses and that's their business. There isn't enough commercial inventory that they could work that fast. So they are pretty strictly a residential investment-only type of company. 

    Are you just specifically looking for a turnkey-quality MFR or apartment complex and you're wanting someone to connect you to some? Or what are you trying to do or buy exactly?

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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    Whoops, I hit "post" too fast. I had one other thing. Back in the days coming out of the crash, there were a lot more MFRs available from turnkey companies (duplexes, triplexes, fourplexes). But where we are in the real estate economy today, there just aren't that many out there that are cash-flowing. That's why so few turnkey folks have any for sale now. But that again depends on if you meant residential or commercial MFRs.

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  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    8y
    Originally posted by @Account Closed:

    I'm a new investor looking to find a good turnkey promoter for multifamily residences and apartment complexes. Does anyone have recommendations for (or warnings about) promoters you've worked with?

     Did you narrow down a market yet? There are a ton all over the country.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Ali Boone:

    Whoops, I hit "post" too fast. I had one other thing. Back in the days coming out of the crash, there were a lot more MFRs available from turnkey companies (duplexes, triplexes, fourplexes). But where we are in the real estate economy today, there just aren't that many out there that are cash-flowing. That's why so few turnkey folks have any for sale now. But that again depends on if you meant residential or commercial MFRs.

    you can find these quite easily in Chicago market were most turnkey is some sort of duplex to 4 plex. 

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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Hi @Caleb Heimsoth, I read @Ali Boone's  book Turnkey Rental Properties 101 and thought she made some good points about the value of working with a promoter vs. working directly with a provider - super summarized, providers have a vested interested in selling you on their market and their properties while a promoter may work in numerous markets and with numerous providers and can be slightly more neutral about which one you choose. 

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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Hi @Ali Boone, by MFR, I meant residential MFR - I was lumping commercial MFRs in with apartment complexes. Thanks for explaining that providers don't work with commercial properties; I didn't realize that sector was completely outside of their purview.

    Based on what I've read so far, I'd prefer to start off investing with turnkey providers and (possibly) branch out from there after I've gained more experience. I'm interested in working with turnkey providers more because of their investing model rather than the specific niche.

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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Hi @Tom Ott, I've done some market research and have a few places that I'm interested in; however, one of my goals in connecting with a turnkey promoter was to get more insight into markets.

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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Hi @Jay Hinrichs, thanks for the input about Chicago!

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Hannah Officer Estalote I would be careful about saying providers don’t work in commercial or multifamily. I know for a fact this isn’t true. Some companies do, do this they are just few and far between and typically take longer as rehabbing and turning around an apartment complex is not easy. In the last 6 months I’ve seen a 8 unit sell for 430k, a 12 unit sell for 740k and a 20 unit that was 1.2M all in the same city, same provider. I would look at the popular turnkey markets (Cleveland, Memphis, KC, Indianapolis, Birmingham, etc) and pick one. From there you’ll likely find 1-3 good providers in that market. Then go fly out and meet them. Then choose one. I think that’s easiest. If you go the promoter route please make sure to still vet the provider, and make sure who you are buying from.
    1Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    8y
    Hannah Officer Estalote turnkey mfh is to join a syndication as a limited partner.
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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Thanks, @Caleb Heimsoth!

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  • Account Closed
    OP
    Woodside, NY · Member since 2018 · 7 posts · 1 vote
    8y

    Thanks, @Lane Kawaoka, I'll have to add that to my research list. :)

    1Reply
  • Beatriz Delgado Diez
    Ladera Ranch, CA · Member since 2017 · 5 posts · 0 votes
    8y

    Northepeak Investments have turnkey MFR (2-4 units) in south Chicago. I haven't bought from them but the rehabs look really good. Maybe @Jeff Wallenius can chime in

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Hannah Officer Estalote syndications are a good option but make sure you’re an accredited investor as that’s what most will require. That means net worth greater than 1M excluding personal residence or 200k a year or more in earned income. 300k if joint with a spouse
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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y
    Originally posted by @Account Closed:

    Hi @Ali Boone, by MFR, I meant residential MFR - I was lumping commercial MFRs in with apartment complexes. Thanks for explaining that providers don't work with commercial properties; I didn't realize that sector was completely outside of their purview.

    Based on what I've read so far, I'd prefer to start off investing with turnkey providers and (possibly) branch out from there after I've gained more experience. I'm interested in working with turnkey providers more because of their investing model rather than the specific niche.

    Providers vs. promoters, you mean, or just turnkeys in general are what you are shooting for? Not sure I know what you mean as far as niche.

    Thanks for your compliments in your comment about my eBook! Reach out anytime if I can be of any help along the way as you get further into the turnkeys.

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  • Kiera Underwood
    Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    7y

    @Account Closed as far as promoters I'm a big fan of Norada! 

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