I am looking for review on turnkey providers

7 Replies

I am looking for recommendations for turnkey providers of SFH's in markets outside of MN. Preferrably from a 3rd party and isn't selling their own services. I currently don't invest outside of MN and am looking to potentially diversify.

Thanks,

Jake

Yes, there are companies that vet good providers.  None of them work for free.  They simply take the hard work of a good turnkey company, mark up the product, and sell it to you.  So, you're now paying the markup of the TK provider AND the referral network. 

The only way you'll truly vet in an unbiased way is to speak with other investors with experience dealing directly with the TK provider.  From there, you should go visit the provider and see their operations. 


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I like @Jeff Schechter 's approach as well. It's just my thought that if Norada has built a reputation on evaluating turnkey companies, it might be helpful for him to even give him insight into who to start interviewing! Per their referral he could ask providers for connections with other investors they've worked with, fly to see them etc. The turnkey provider does have to pay for those referrals, so I totally understand the pain point Jeff! 

@Account Closed that review of a property isn't crazy to me! It's not factoring in CAPEX as many evaluations don't. How would you do it differently?

Originally posted by @Jeff Schechter :

Yes, there are companies that vet good providers.  None of them work for free.  They simply take the hard work of a good turnkey company, mark up the product, and sell it to you.  So, you're now paying the markup of the TK provider AND the referral network. 



Actually the above it’s completely untrue- the price is not marketed up, price is exactly the same- the tk provider pays the transaction referral fee, not the buyer  and the property price is the same, and property has to appraise for market value. No one is over paying. The tk provider is making less by choice bc of the partnership they created with Norada. 

 

If you click on “analyze this” button from the same page-  it takes you to the page where you can change all assumptions, and add in YOUR numbers. The first page is used for quick info, and basic stats. 

Purchase Price:$92,000Rental Income:Rental Income shows the actual lease amount when property is leased; otherwise it is the target lease rate.$950
Bedrooms:3Property Tax:$67
Bathrooms:1Insurance/HOA:$46
Size: (sq ft)1,074 Property Mgmt:$95
Price/Sq foot: $86Cash Flow: (Raw)$742
Year Built:1951Cap Rate:9.7%
Parking:Rent/Value Ratio:1.0%
Neighborhood:B+DealGrader™:7.7

 Emaple of a property right off Norada. If only real life income expense calculations were so simple............................lol.

 

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