What to ask potential turn key companies

What to ask potential turn key companies

Investor · Chula Vista, CA · Member since 2015 · 44 posts · 12 votes

So this is not really a debate on whether tk is for you or not but more along the lines of what would you ask these companies? Heres what I have so far:

How long have you been in business?
How many customers are repeat buyers?
Whats the average turnover rate ( for a specific area)?
Whats the average ROI per year (I get this is very subjective)?
Is property management in house?

These are just a few, feel free to chime in and add some.

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Ned CareyPro Member
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Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
11y

Given that you cash flow forecast is bull poop, what can I really expect as a return? 

How many references can you give me of investors who have owned for 4 years or more?

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    11y

    Given that you cash flow forecast is bull poop, what can I really expect as a return? 

    How many references can you give me of investors who have owned for 4 years or more?

  • Agawam, MA · Member since 2015 · 12 posts · 0 votes
    11y

    If I am not wrong you want to ask something from your potential manager or company before hiring.

    So here are some of the points that helps you:-

    1. How many properties do they manage?
    2. What are the costs?
    3. Are they certified and licensed?
    4. How does their eviction process work?
    5. What kind of properties do you specialize in?
    6. Where are the majority of your properties located?
    7. And last but not the least, ask that whether they provide you with a transparent fee breakdown?

    If they are solid real estate company then they will surely explain you all the process about transparent fee breakdown.

  • Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
    11y

    @Rob Z.

    I would add that the first thing I would ask is what is your strategy and what types of areas are you buying/selling in. Some buy in better areas some in worse, some will sell you at 100% of "value" some will sell at a slight discount. I would compare this with what you are comfortable with doing. 

    I would also ask:

    1) Do they charge a leasing fee on top of the property management fee and if so does that fee roll over when someone signs a new lease or only to place it.

    2) if they provide any type of guarantees and if not wht happened last time something went wrong (if they tell you nothing ever went wrong run far and fast unless they are really new).

    3) if they can give you referrals. 

    4) What costs are excluded from their calculations. Some don't agree with calculations of say capex. 

    You can also check out http://turnkey-reviews.com/

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