Real Estate Investor · Fremont, CA · Member since 2011 · 13 posts · 5 votes
Hi,
My name is Kumar from Northern California, employed full time. Have spent several months trying to educate myself by reading most of the articles on this website.
I am a regular visitor to this website, this forum provides ..
# Great wealth of information on real-estate, concise but still well described for newbies.
# Information is shared by members who are actually doing this business, this makes it realistic.
Having spent some time researching on Turnkey projects, I am planning to start investing in out-of-state rental properties. Local properties are very expensive to invest in decent area, which would have been my preferred area to invest.
I have come across several companies that has turnkey offerings for investors.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Kumar,
I have not looked in detail at your list, so cannot comment on the deals offered by any of these specific companies. I have, however, reviewed a number of deals offered by turnkey companies. The majority (though not all) of the deals I have reviewed have been, at best, mediocre. They're priced above other properties in the same area and the claimed rents are higher than the market. These companies are, all too often, aimed at people exactly like you. Someone from NY or CA or some other very high priced market. You will look at these deals with your CA eyes. You will think I can't believe these houses are so cheap and will jump in with both feet.
Before you engage in a deal like this, you need to 1) learn about the landlord business, and 2) learn the market where you're buying.
I get beat up for advocating the "50% rule". That is, expenses, vacancy, and capital will eat 50% of your gross schedules rents. Really, that's market rent. Any particular property in any particular year will do better or worse than this rule of thumb. But for a portfolio over the long term, this rule seems pretty good.
You can do quite a bit better by contributing your own labor for management and minor maintenance. But it you're living in the bay area and have properties far away that's very difficult to do. You will have to pay a PM and you will have to pay someone to deal with the most minor of problems. So, this rule of thumb is what you should consider.
Second, learn the area. That can be as simple as spending some time doing research. Look on realtor.com and local web sites and see what's for sale in the same area. Look on craigslist and other sites and see what's for rent. Watch for six months or a year and see what disappears and what's still there month after month. Then, once you've found something where the deals being offered are comparable to the market (you're not going to get screaming good deals going this route), the claimed rents seem about right, and properties come and go for both for-sale and for-rent properties, buy a plane ticket. Go there. Drive the area. Drive up and down every street in the area of the properties. Day and night. Meet the sellers. Look over their operation. Meet the PM. Buy a soda at the 7-11 and see what the area is really like.
Real estate is not like stocks. If you buy a stinker stock, you can sell at a loss at any time. Thirty seconds online and its gone. Real estate isn't like that. You get stuck with a stinker and it can suck more and more cash out of your pocket. Even if you pay cash. If you're leveraged, and you overpay, you can end up with a "deferred down payment" and have to pay to get rid of a bad property.
Real estate can be a good investment. But for many people who got caught up in the hype of the bubble years, it can be absolutely devastating. Learn the business first. Learn what's a good deal for you and what's not. Then jump in.
Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
14y
Investing in turn-key properties will have you paying premium prices for the properties. Are you in a position to pay this amount to get these types of properties.
Investor · Atlanta, GA · Member since 2010 · 186 posts · 14 votes
14y
I do not know any of these companies you listed above. But, Dale is right. These turn key properties are generally a lot more expensive than those you buy from agents or wholesellers.
Further, these so called turn key properties are not trouble free as they claim to be or not any better quality.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Kumar,
I have not looked in detail at your list, so cannot comment on the deals offered by any of these specific companies. I have, however, reviewed a number of deals offered by turnkey companies. The majority (though not all) of the deals I have reviewed have been, at best, mediocre. They're priced above other properties in the same area and the claimed rents are higher than the market. These companies are, all too often, aimed at people exactly like you. Someone from NY or CA or some other very high priced market. You will look at these deals with your CA eyes. You will think I can't believe these houses are so cheap and will jump in with both feet.
Before you engage in a deal like this, you need to 1) learn about the landlord business, and 2) learn the market where you're buying.
I get beat up for advocating the "50% rule". That is, expenses, vacancy, and capital will eat 50% of your gross schedules rents. Really, that's market rent. Any particular property in any particular year will do better or worse than this rule of thumb. But for a portfolio over the long term, this rule seems pretty good.
You can do quite a bit better by contributing your own labor for management and minor maintenance. But it you're living in the bay area and have properties far away that's very difficult to do. You will have to pay a PM and you will have to pay someone to deal with the most minor of problems. So, this rule of thumb is what you should consider.
Second, learn the area. That can be as simple as spending some time doing research. Look on realtor.com and local web sites and see what's for sale in the same area. Look on craigslist and other sites and see what's for rent. Watch for six months or a year and see what disappears and what's still there month after month. Then, once you've found something where the deals being offered are comparable to the market (you're not going to get screaming good deals going this route), the claimed rents seem about right, and properties come and go for both for-sale and for-rent properties, buy a plane ticket. Go there. Drive the area. Drive up and down every street in the area of the properties. Day and night. Meet the sellers. Look over their operation. Meet the PM. Buy a soda at the 7-11 and see what the area is really like.
Real estate is not like stocks. If you buy a stinker stock, you can sell at a loss at any time. Thirty seconds online and its gone. Real estate isn't like that. You get stuck with a stinker and it can suck more and more cash out of your pocket. Even if you pay cash. If you're leveraged, and you overpay, you can end up with a "deferred down payment" and have to pay to get rid of a bad property.
Real estate can be a good investment. But for many people who got caught up in the hype of the bubble years, it can be absolutely devastating. Learn the business first. Learn what's a good deal for you and what's not. Then jump in.
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
14y
Kumar you might be better off loaning money to people that have experience so that you can be passive and get a solid return.
I laugh at turnkey. Turnkey "to me" would be all new wiring,plumbing,mechanicals,roof etc. (basically a new building almost) and then a tenant screened very heavily with additional security deposits.
I would venture to say most of these "turn key" properties they put lipstick on it and then put a marginal renter in there.Then all of a sudden you have a no pay to slow pay tenant,damage to the property,mechanicals start to fail,and oh yes you are states away depending on an individual to protect your investment.
Usually the turn key properties are built on the cashflow and have little appreciation compared to other properties.If you were to buy such properties the company should offer a turn key "guarantee".
Example: Buy this property from us and if it's not everything we said it was going to be we will buy it back from you at the price you purchased it for within a year from your purchase date.
If the turn key company is selling crap they won't stand behind what they sell.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
14y
The mere fact you can create a list like this Kumar, should be evidence to you that you’re investing into a fad. All of these firms will promise you’ll never have to lift a finger because they have local property managers wrapped around their fingers. They could have dozens or even hundreds of deals in an area that they can hold in front of a property manager to focus their attention.
When the music stops however, and it always does, the money for these deals will dry up and the companies you listed will disappear. Your property and associated obligations will of course remain. Who will turn the key for you then? That is, unless you have many properties in a particular area, how will you convince a property manager to efficiently and honestly manage your few homes?
If you must do this, after you’ve done all the research Jon suggested above, I’d buy as many homes in one area as possible to ensure you have the economies of scale and enough assets to draw a property manager’s attention. Unless you have a huge amount of money to purchase many homes in many areas (in which case I’d suggest apartment buildings) you’ll want to focus your efforts. Diversification here is not your friend.
SFR Investor · Phoenix, AZ · Member since 2009 · 484 posts · 181 votes
14y
I looked over the listings for the one in Phoenix, and I wasn't impressed. I wouldn't touch those properties anywhere near the listed prices - actually I wouldn't touch them at all if I was paying for labor, they all looked like money pits.
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
14y
To me, turnkey = investor trying to sell to investor. In the case with turnkeys, from what I've seen, the first investor sucks all of the profit out of the property when selling to the second investor. Bottom line, you don't want to be the second investor unless rents are at or below market and price is at or below value. You're better off just searching the MLS for properties that don't need much/any work and buying them at a nice discount than to go with turnkeys.
On a side note, every time I read the work "turnkeys" I think "turkeys" which makes me think it should be hyphenated, but I'm gonna leave it :)
Real Estate Investor · Salem, OR · Member since 2011 · 422 posts · 149 votes
14y
Michael you beat me to it.
"Turkey" properties. I think the same thing.
I believe there is a place for them & that they can provide a quality product. But it would take a seller with a lot of integrity willing to educate their buyers & to provide accurate #'s. Personally I don't feel there are a lot of people out there who are willing to do it.
Real Estate Investor · Fremont, CA · Member since 2011 · 13 posts · 5 votes
14y
Thank you everyone for pitching in your views and comments.
Dale & Nate : I expect price of acquiring through turn-key will be slightly higher, not sure by how much ( 10 to 15 % more). But looks like, I am under wrong assumption that they would have less problems and would be rehabbed with better quality.
Jon: I agree with 50% rule & Real estates are not like stocks. I will start working on learning the markets. Thank you on all the pointers you have
Joel : I thought about loaning, but this still carry risk of lending to wrong people. And cannot leverage from lower rates and market downturn.
There are couple in the list that guarantee tenant an year, now after reading all the comments, this might be priced in the property price.
Jeff: Totally agree that having at least few concentrated at a location will be advantageous for management. But, I have to start with first deal, probably that is the toughest.
Michael : Searching through MLS is easier as you stated. It might be difficult to decide on the location unless I am local, even going there for couple of days may not let the complete story. This was making me to think on turn-key, but looks like more problems are bundled with turn-key investments.
Brian : I will pm and get more info on trenton management company.
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
14y
It’s not dirt cheap prices you want, Kumar. If it were, you could easily buy a pile of $500 properties in Detroit. You’re looking at least for long term cash-flow, maybe some appreciation, and an area that affords safety and stability to protect your asset as well as enough property managers for you to pick and choose from long term. Price is a small part of the equation. I’d encourage you to establish your criteria before you speak seriously with any agents or sales reps.
Frankly, I agree with Joel and I would take my money and lend it locally short term. It’s actually pretty safe, though admittedly, I am a bit biased.
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
14y
kumar, i believe there are better opportunities than turnkey..we have some turnkey guys on here, and i'm sure they'll chime in...however, 2 years ago RetireOnRentals ouf of Charlotte sold a house for 80 or 90k. the almost identical house i bought in the same neighborhood for 19k a few weeks prior....even putting 30k into rehab..does that sound like they're only making 10-15%...investors are greedy, and they're trying to make as much as possible on the sale unfortunately...lending, discounted notes are some other good options where you can earn 15-20%
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
14y
I've looked at out of state stuff too and the turnkey numbers are quite a bit higher in almost every one I've found. One thing you might want to try instead is finding a good realtor. There are some realtors that specialize in investor deals and some are even out of state friendly.
This would be a better bet and you'd probably save yourself about 20% on your all in cost (purchase/rehab) based on some of the numbers I've seen.
They tend to have contractors they'd recommend as well. The trick is going to be finding a good contractor and a good property manager. But in this market, I don't think its impossible. Just need to get a little lucky with putting together your team and you'll probably be ok.
I could understand if the numbers don't work in a state like California. And I'd rather risk the out of state investing than not get in the game at all. I don't think you're going to go wrong with the prices/cash flows that are out there right now. And it simply can't last like this forever.
When the music stops, I think there are going to be a lot of people kicking themselves for not getting every single property they could have gotten their hands on.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y
Okay. Here is the contrarian view to most of the posts above.I've never had a turnkey company but I have definitely sold a lot of turnkey properties to investors. You need to remember that here on BP, most of the posters are very active in the real estate market, and many do it for their living. You are forgetting all of those people that are very successful in another business the desire to purchase real estate. They don't have the time to go out and be a bird-dog, or to find someone that will do a rehab with them, or research properties in Detroit or Memphis or Miami.
For these people, they might be willing to pay a little more since they value their time at a lot more than what most people on BP value their time.(don't take this slap for more than what it is)
Now we need to discuss what constitutes a turnkey property. If you are talking about a piece of crap in Detroit as one of the above posts did, that would be a serious mistake in my opinion for many reasons.
When I started delivering turnkey properties to investors, they were very pleased at my process.
I would pay cash for a foreclosure property at the courthouse steps. Many investors don't want to pay cash so that it eliminated their first problem or concern. I would then take this property and do all rehab necessary to make it a viable investment. Most investors don't want to do this step either. I would then advertise and rent this property to someone that passed a credit check and had a minimum of first and last months rent. Most investors are not capable of this step either. I would then have the property appraised by a legitimate appraiser at the current value.
I was then in a position to reduce the price to less than the appraisal and deliver a property fully rented, fully rehabbed, and fully managed by an actual property management company.
In my opinion, this was definitely a win-win situation and several BP members actually purchase properties this way. These were not your normal bird-dog BP members. Several of these investors bought multiple properties from me of the same type.
This led to me moving into an actual subdivision which I later purchased. I have built new homes-- all four-bedroom, two bath, and two-car garage homes, that are fully landscaped and fully fenced. They are also fully rented and completely managed. Again, I have several investors that have purchased more than one home in the same subdivision. They have all paid considerably less than full appraised value.
These investors are interested in long-term profit and could care less about the 50%/2% suggestion. They enjoy having a property that doesn't require repairs, doesn't require a .357 and is managed by someone else.
I don't imagine this is the normal method of the turnkey companies that are discussed above, but I certainly would not rule out the benefits that turnkey properties offer too many investors. Rich
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
14y
Rich Weese I'm sure you're offering a quality product at an acceptable price. I'm also sure there are people who are willing to sacrifice some return in exchange for a more passive investment. I will stand by my basic contention, however, that many of the deals offered by these turnkey companies are overpriced and low quality. If someone chooses one of these companies randomly and just accepts their claims without verification and without understanding the market and the landlording business, the odds are better than even they will end up taking a loss. Maybe they will be lucky and pick a good company. I know they do exist because in looking at a bunch of these deals I have seen some that are OK. But I've see more that are priced above other properties in the same area, are claiming rents that are above the local market rents, and are understating expenses.
Investor · Southlake, TX · Member since 2009 · 950 posts · 338 votes
14y
Kumar, rather than taking a chance with a turnkey property from a group that does not have the same profit motive that you would, I would find a trusted investor who is knowledgeable and experienced in one of your preferred markets to partner with. You both would benefit to pay the least amount possible as well as maximizing the profit.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y
Jon and Tod-
In my post I never vouch for any turnkey company nor praised any of them either. The prices and rents of my properties that have been sold to investors have been very comparable to other properties in the same market. I'm sure many of the turnkey companies are fleecing the general public and taking advantage of the uneducated investors. I will also stand by my comments in my previous post. Rich
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
14y
Something I would consider if I was Kumar: And this is not from a real estate expert perspective, but rather a practical perspective.
Based on Rich's comment, the turnkey investment is most appropriate, from an investment standpoint (not from an operational standpoint - which I discuss below) for the investor more willing to commit to appreciation and mortgage pay down approach and is not too concerned with cash flow, even if you get a good-for-turnkey deal. IN GENERAL.
If that is, in fact, something you are okay with, why not invest in your own back yard where your potential for appreciation will likely surpass that of the mediocre appreciation of the inland areas with turnkey sellers? These inland areas tend to be where the turnkey companies sell their wares form what I have seen.
If my choice was marginal return from an out of state investment vs marginal return for a local investment - the answer would be easy for me.
From an operational standpoint, you have other considerations. As Rich said, many investors don't want to or are not able to pay cash, don't want to do rehabs, don't want to lease, don' t want to manage. If this is the case, and you are okay with mediocre returns, I think the question is not so much "do I want to invest turnkey?" but rather, "why do I want to invest in real estate?" Personally, I think you should be willing or capable to perform some if not all of these duties if you are going to take on the risk that is inherent with real estate.
If you have no desire to be involved in any part of real estate except for the returns, why not find something in which you are more interested for investing? You are, probably, more likely to succeed investing where your interests and/or knowledge lie.
Investor · Omaha, NE · Member since 2011 · 475 posts · 211 votes
14y
Kumar:
If you are interested in tax free returns from real estate and want to be completely passive you may want to consider investing with a real estate investment syndicate rather than owning yourself. You'll have to do your due diligence to be sure of their track record but it would at least allow you to invest without the headaches of management.
Investor · Cincinnati, OH · Member since 2010 · 1k+ posts · 928 votes
14y
Well, Kumar, folks are pretty much just saying that there are some bad companies out there doing this, but there are some good ones as well, as Rich described. That sounds like most other industries I’m familiar with, though admittedly the regulation in this industry is between lax and nonexistent. (I’m not complaining over lack of govt interference, mind you.) So you need to do thorough due diligence, bet you didn't know that, huh??
I personally would be very cautious investing in an area I couldn't drive to and back in the same day. I might do it, but I'd have to do 3x the due diligence on all aspects of the REI company and market I was evaluating. I'm sure you're prepared to do this level of DD.
One option for you is to draw a circle (or in your case on the coast a quarter of a circle) extending out 150 miles from your home and consider that an area where you could feasibly invest. The Fresno/Madera corridor is within that distance of the Bay area and delivers up 2% (or near 2%) properties, no doubt about it. So why don't you go to that area and check it out. You will get much better results from your team (PM, contractors, realtor) when you can drive there and show up on their doorstep at any moment! You will need to commit to making weekly trips until things are really rolling and your trustworthy team is in place. This is not as difficult as it seems. Start with talking to PM's in the area, as well as REO listing agents.
If you really want to invest long distance on a TK basis, you need to verify numerous things. I’ve never dealt with a TK company, but I’d look for the following:
* TK company profits no more than 15% of purchase price at time of your sale. You want verification of what they paid (public info), and get a very detailed breakdown of what has been done to the property, so you can determine approximate rehab cost. Do not take their word that it's a "$20k" rehab, that’s them giving you a retail estimate for work they’re doing in house or with investor contractors. If they're trying to profit more than this, I think it's a ripoff, personally. Now the company may try to overstate the extent of the rehab they did to the property. I want to see “before” and “after” pictures, and you’ll verify when you visit that the stated work has been done. Others will say, “hey, what do you care what they’ve got in it, if it’s a good deal, it’s a good deal”. I don’t feel they’re ethical or have my best interest at heart if they try to earn an outsized profit just because they might be able to get away with it.
* The purchase price is 10% (preferably 15-20%) or more below market, and you've verified this with a certified appraisal or independent BPO from your own agent in that area. Additionally, if sales data is readily available on the assessors site, then do your own checking. Verify that there is retail (owner-occupied) purchase activity occurring in the prior 6 mths in the area of your candidate property.
* Same thing with checking out market rents. Use Zillow zrent, rentometer, padmapper.com, CraigsList, local Section 8 tables (can get these from the local housing authority office), and other tools to get comfortable with rents.
* You want systems/mechanicals/roof that are in the last 7-9 years of useful life to have been replaced. You probably want a property that is 30 years or less in age. You may determine that you always want the copper replaced, if present, for example.
* Gross rent yield is at least 16%, with properties renting for $850+ per month. Armed with this requirement, and all the info above, you can negotiate price with the TK company.
* TK company has some history and scale. Company provides the names of investors who have been with them for awhile, that are agreeable to talk with you about their experience. The company has a great reputation (find this out by talking to realtors , investors, and lenders in that market).
* TK company has private lending opportunities available. I’d be careful here, however, as the rate you have to pay may be higher than the true long-term net yield on the property. If you’re new, you may be able to use conventional financing for the first few deals, and after a couple of years of owning rentals you can likely get a few more conventional loans. Other than that, you’re probably stuck with a private lender, as local banks where your property is located will almost certainly not make a portfolio loan to you as a long-distance owner.
* And of course the prop mgmt. is an additional dimension of DD that you will have to perform to make sure you don’t get ripped off.
A lot of TK companies make Year 1 guarantees of net income. This has little value to me in a long-term asset. Some companies are doing equity splits where you just make a loan on the property at 8-9% interest, and get 50% of the profit at the 5-7 year exit point. (among others, truewholesalehouses.com and Michiganturnkey.com do this, though the latter is a pretty small/newer company operating in the Detroit suburbs and Pontiac). This idea of the TK company having “skin in the game” is appealing. Some companies pay you a below market rate of rent (you have a lease with the TK company), and in turn cover all the maint expenses and a pre-determined % of capital replacements. This is interesting, and gives them a strong incentive to efficiently care for the property and place good tenants, though a long-term guarantee like this is only as good as long as they’re still around.
Rich is dead on that there are many mid- to high-level executives and business owners making $150k (in the midwest, or equivalently $250k on the west/northeast coast and expensive areas), that see the value in buying one of the few truly undervalued assets out there, but love their work and enjoy a very high return on their labor from that work. As Rich says, this is not the profile of *most* on BP (some, of course)sure). These individuals want a passive investment, and these TK companies absolutely can play a role in this. Also, poor hapless investors living on the west or northeast coast simply can't locate adequately cash flowing poperties in their immediate area. For these, of course TK is also reasonable. And a TK property is an ideal "financeable" property on a conventional loan, as no additional rehab needs to be done. You can optimize your leverage because the TK company has already bought and rehabbed, either using its own cash or a bank loan program it has in place. So you can get into the deal with just 20% down on the front end, rather than looking to pay cash (or hard money proceeds) for an REO, do the rehab, and figure out how to refinance the damn thing. So this is very attractive as well.
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
14y
Nice post David - took me a little while to get through it - but well thought out.
I would only highlight one point you made and that is the fact that this is becoming a niche piece of the real estate industry and there are in fact good and bad companies operating in the niche. Just like any industry or service, there are going to be reputable providers and those that are in the industry for the short term quick hit.
The term Turn-Key is really nothing more than a marketing slogan at this point and there is no definition as to what it means or how it applies to the services an investor can get. Too often it simply means someone is trying to appeal to investors who are either unable or unwilling to put the work in to have a cash-flow positive investment property. So a company simply calling themselves Turn-Key really means nothing on the surface. You have to really dig to find out what kind of company they are on the inside.
I think most quality companies, and I do consider my company to be one of the best in the industry, will tell you that the advice given on here is spot on when it comes to your due diligence. The advice that Jon Holdman placed on here was correct and if you are not willing to at least review and try to understand why you want to invest in a certain city or with a particular company, then you are opening yourself up to a big letdown and possible failure as an investor. Unfortunately, there are a lot of very poor investment opportunities out there today disguised as good deals. If you are not willing to investigate and put the time and effort into learning what/where/who you are investing with, then I would not advise purchasing Turn-Key properties.
Then again, Kumar RK, I am pretty sure that is what you were trying to do with your post. I think that list was a little premature and you should absolutely be investigating the markets before you investigate the companies. If the market makes sense for your long-term investment goals, then the next step would be to investigate who is there which one - IF ANY - is able to match your goals as an investor.
Real Estate Investor · Chattanooga, TN · Member since 2009 · 191 posts · 47 votes
14y
After buying property on my own, I thought it might be easier to try a few turnkey properties. I tried companies in Ohio and Tennessee.
I would never again use one company. Their deal ended up being my worst deal ever, hands down, for so many reasons. Why it was so bad is a long but ultimately comical conversation. Hints as to why it was bad? Think of lost equity, incorrect rehab costs, property not secured, incorrect rents quoted, 2 title issues, including one inherited lawsuit. Unfortunately, I can go on. Ultimately, the entire deal was horrible because I obviously didn't do sufficient due diligence on the company or the property.
On a happier note, I'd still buy from the other company I tried if the right deal presented itself. One of my best deals came from that company. The company has been great for so many reasons.
If you buy from a turnkey company, make sure you do all your own due diligence. Tell the company exactly what you are looking for with the numbers, rehab, rent, area, etc. Don't just believe them when they tell you the numbers, rehab costs, rent, etc. Research it all when they bring you deals. You could treat the turnkey company as you would a wholesaler or a realtor, they are another resource to send you deals.
If you want to know company names, feel free to call me because I don't feel comfortable mentioning specific companies here.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
14y
Someone has way too much time on their hands! Let me reply to what you think is a discrepancy in a previous post. I have never run a credit check, if you are talking about an actual credit reporting company that receives a fee to run the credit check. I don't even know the name of a single credit reporting company.
I have my own personal four-page application filled out by every prospective tenant. This application covers all the things I'm interested in, including but not limited to, the items mentioned above. I want to know the amount of income earned and how secure that income is to continue being earned at the same job or in the same profession. I also want to know if they have declared bankruptcy, and that does not automatically rule them out of being a tenant. Especially in this day and age when the economy has destroyed so many people's credit. There are many other items required in My app/credit check.
I hope this explains my method of doing a credit check compared to the credit reporting agencies that use a boilerplate method just like FICO uses on their scores. Rich
