I am about to jump back into real estate investing with the goal of purchasing turn-key rentals. I live in Cali, but will be investing out-of-state. As I begin to put together my "investment team" in each local market I am analyzing, I wonder whether it is best to assemble members from different companies (i.e. using a real estate agent from one company and a property manager from a different one) or if it is OK to go with one company that offers a wide range of services (a "one-stop shop")?
Do y'all have any thoughts on this? Are there conflict of interest concerns in using one company that offers a range of services?
you can certainly use and assemble your own team but most tk companies have a system in place for you to take advantage of which is why most people use a tk provider.
Some of my most valuable team members referred me to colleagues who also became members of my team. I didn't plan it out that way, but when you find good people and have a bad experience with another professional you work with, you tend to ask those you can count on for advice.
Hope this helps and good luck bro!
As a out of state investor, I have a preference for turn-key companies that already have a full team in place, and particularly property management, most preferably under the same ownership. The PM can really make or break your investment deal, and I want a PM that is motivated to keep investors (and tenants) happy over the long term.
Remember the difference in incentive in working with individuals worth an entire team. One individual only has so much incentive to perform properly for you because they will make a minimum amount on the deal. But a company who is in charge of the whole process has a lot more incentive. That company needs each department to perform as best as possible because their sales depend on it. Each department relies on the other, so they all have to work together to make the whole sale a good one. Individual team members don't have that incentive, and likely could care less, so the motivation to go out of their way to make your property perform well is much less, if anything.
That's great advice from everyone so far. And that's why I have grown to like turnkey providers. Especially as an out of state investor.
Just as a counter point to think of; with a single provider, if that provider is not good you have a bigger problem then if one person is bad and you just need to fill that one roll.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
I personally run team players from various companies. I don't really work with particular companies; I just work with whoever I like.
Thanks for the insight! It sounds like finding a company that can provide all of the services is the general preference, particularly for out-of-state investors. But I can definitely see the drawback if you don't like one part of their service and you are "bought into" a bundled package of services (kind of like cable companies' "triple play" packages, lol).
The important thing for me from these responses is that there is no bias against using a full-service company. So if I find one I like, I won't be going against conventional wisdom by using them.
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