Investing in Turnkey properties

17 Replies

Being a new young investor there are two things I do not have, a lot of capital and a lot of time. I am currently working and going to grad school full time. So, there is little time to look for good deals and manage a property.  Plus, the CA real estate market is a little above my pay grade. So, I considered investing in turnkey properties specifically in the Atlanta area. I have family there who would be able to keep an eye on my properties. 

I would like to know others experience with turnkey properties and companies? Pros and cons? Also, any recommendations on a good company to use would be greatly appreciated. 

Im in the same boat man. Im currently in a contract for my first turnkey deal its in memphis. I think you really got to make sure you can trust the company you work with especial if its your first time. I think one of the most important things is being comfortable and confident in the people your investing with. Once you find a company have them send you some properties and run the number over and over and over. Then ask questions and run the number again.

[email protected] | 6172709592

Personally, I think it's insane.  Find your own place, find your own manager - or better yet manage it yourself.

If it sounds iffy, or too good true to believe, then run the other way.  

Look for deals closer to home that you can manage yourself, or at least drive to, to see what's going on there.

Anything else, unless you hire someone you completely trust, is nuts.  In my opinion.

There are too many shysters out there ready to take advantage of you.  Don't be .....silly.

@Billy Maloney

How are things going with the company in Memphis? Would you recommend that others use the company? 

Originally posted by @Sue K. :

Sue, I just moved to the SF Bay Area and housing prices are just too expensive for me to invest in right now. That's is the reason I am looking at properties out of state. I have lived on the east coast all my life and I do not know anything about the west coast market. All of my free time, the little that I have, is used reading books trying to gain knowledge.  Who should I know in the Bay Area as far as agents, PMs, other investors, etc? 

Hey Kanisha, where are you from on the east coast? I'm on the east coast as well (NJ) maybe I can help you find a company out here, if you feel comfortable or familiar with this market.

Originally posted by @Edward Hall :

I'm from Atlanta and still have family there so it would be great if I could find a company there. Or the D.C area. 

If your going to go the out of state route I think Atlanta is your best bet.

You are from the area, you know the neighborhoods. You have the best understanding of the value out there.

You should be able to tell if your paying a fair market price for the home and the types of tenants who would be willing to live in the neighborhood said home is in.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

Hello Ms Edwards:

I'm in Baton Rouge, Louisiana, and I have contacts all over the country to include Atlanta. I was always told to follow the Gold. If it is a good deal that can be verified by a Licensed Title Attorney anywhere with fair ROI. Why not make the money?

I would also contact the BBB in the area to "start with trust" but again verify.  I'm a member, and like to work with other A+ members on turn key property deals 

Medium real estate logo imadeAlex Hamilton, Hamilton Investment Properties CHDO Inc. | [email protected] | (225) 238‑3923 | http://www.hamiltoninvestmentschdo.com

Originally posted by @James Wise :

If your going to go the out of state route I think Atlanta is your best bet.

You are from the area, you know the neighborhoods. You have the best understanding of the value out there.

You should be able to tell if your paying a fair market price for the home and the types of tenants who would be willing to live in the neighborhood said home is in.

 James thank you for the advice. 

Originally posted by @Alex Hamilton :

Hello Ms Edwards:

I'm in Baton Rouge, Louisiana, and I have contacts all over the country to include Atlanta. I was always told to follow the Gold. If it is a good deal that can be verified by a Licensed Title Attorney anywhere with fair ROI. Why not make the money?

I would also contact the BBB in the area to "start with trust" but again verify.  I'm a member, and like to work with other A+ members on turn key property deals 

 Alex, thank you for your insight. Are any of your contacts members of BP? Or are there any you recommend that will be helpful in my journey? 

Originally posted by @Canesha Edwards :
Originally posted by @Sue Kelly:

Sue, I just moved to the SF Bay Area and housing prices are just too expensive for me to invest in right now. That's is the reason I am looking at properties out of state. I have lived on the east coast all my life and I do not know anything about the west coast market. All of my free time, the little that I have, is used reading books trying to gain knowledge.  Who should I know in the Bay Area as far as agents, PMs, other investors, etc? 

 This is a huge state.  Even if you know a market in another state, you will have to manage your manager, at minimum.  So, why not do that in California where you can drive to your investment?  Look at Chico, Arcata, Shasta County.  Just a few hours away.  You could self-manage.

I managed a building for an owner in the SF Bay Area, but I would not share his info with a stranger.  Sorry.  But, I know there are meet-ups that some of the BP members go to.  I'm not sure how you find out about them.  Someone here on BP could tell you.

Originally posted by @Sue K. :
Originally posted by @Canesha Edwards:
Originally posted by Sue K.:

Sue, I just moved to the SF Bay Area and housing prices are just too expensive for me to invest in right now. That's is the reason I am looking at properties out of state. I have lived on the east coast all my life and I do not know anything about the west coast market. All of my free time, the little that I have, is used reading books trying to gain knowledge.  Who should I know in the Bay Area as far as agents, PMs, other investors, etc? 

 This is a huge state.  Even if you know a market in another state, you will have to manage your manager, at minimum.  So, why not do that in California where you can drive to your investment?  Look at Chico, Arcata, Shasta County.  Just a few hours away.  You could self-manage.

I managed a building for an owner in the SF Bay Area, but I would not share his info with a stranger.  Sorry.  But, I know there are meet-ups that some of the BP members go to.  I'm not sure how you find out about them.  Someone here on BP could tell you.

 That is understandable. Thank you for the advice. I will definitely look into the areas you mentioned. 

@Sue K. im working with a company called memphisinvest. If you ask around you ll hear good things. Ill let you know how it goes along the way. 

[email protected] | 6172709592

Originally posted by @Billy Maloney :

@Sue Kelly I hear ya. It would be nice to get a property close by in CA, but the numbers dont make sense unless your a more experinced invest and know how to find those deal.  I hope to get to that experince level but right now turnkey out of state is a good learning process for me. Managing properties takes time and some of us dont have it. 

Its all about finding a great company with a good systems in place. As a first time investor I find turnkey to be my best option for me to start out. @Canesha Edwards im working with a company called memphisinvest. If you ask around you ll hear good things. Ill let you know how it goes along the way. 

 I wish you the best of luck.  Just be cautious.

I've always bought turnkeys and I think they are great. I don't think they are 'too good to be true' at all. It's all in preference, and I would never want to do everything and manage everything on my own....ever. 

It's all about the team you work with. As far as Atlanta, I have a ton of experience with Atlanta turnkeys as I am from there, lived there during the turnkey boom for a few months to work with properties, and I own turnkeys there. As far as the companies that are still there, it's down to slim-pickings. The boom ended awhile ago in Atlanta, but there are still folks out there that do them. I don't personally recommend the market anymore, one major reason being saturation, but if you do want to buy there you certainly can. Just know what you are buying.

Medium hipsterinvestment logo black300dpiAli Boone, Hipster Investments | [email protected] | 310‑957‑2101 | https://goo.gl/x52ZKJ

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you