New REI looking to purchase Turnkey Property OOS.. any advice?

New REI looking to purchase Turnkey Property OOS.. any advice?

Rental Property Investor · Brea, CA · Member since 2020 · 8 posts · 0 votes

My wife and I are W2 earning employees working in Los Angeles looking to add Rental properties in our portfolio. We are looking in Tennessee and Arkansas (but open for any other markets) and want to use a Turnkey Property company for our first purchase to learn the business.

Any advice on steps to take BEFORE making our initial purchase?

Did you create a legal entity BEFORE you made your first purchase?

Any Turnkey Property companies anyone would recommend?

Thank you all in advance! I’m trying to soak up as much info as I can.. I know some if not all questions have been answered here before on different threads but created this one to hopefully have my questions answered here on one thread..

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Columbus, OH · Member since 2018 · 164 posts · 126 votes
5y

@Juan Rivera

Here are few

REI Nation (formerly Memphis invest)(bit expensive and numbers didn't meet for me)

Memphis turnkey properties (I have 2 with them)

Norada real estate (I have 2 with them too)

Let me know if you need anything else .. I can share few more details

Cheers

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  • Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
    5y

    @Juan Rivera I would totally suggest reading David Greene's book. Get your team together, and leverage. I would set up an LLC when you are under contract. I can get you in touch with buying a new build here in NWA. What return are you looking for?

  • Honolulu, HI · Member since 2020 · 196 posts · 190 votes
    5y

    @Juan Rivera Proper Sequence: start interviewing PMs first and start a relationship, then buy a property. A good PM is so important and a great PM can be a source of great advise. Inversely, buying a property first and the finding a PM can be a nightmare. Buying a property and the. having trouble finding a good PM is just dumb and very costly (I did this in my rookie deal and still kick myself, very humbling). Good luck on your journey!

  • Rental Property Investor · Brea, CA · Member since 2020 · 8 posts · 0 votes
    5y

    @Andrew Rosenberg thanks for the info. Never thought of looking into a good PM first. I appreciate the feedback!

  • Rental Property Investor · Brea, CA · Member since 2020 · 8 posts · 0 votes
    5y

    @Ryan Blackstone thank you and look forward to the book recommendation.. I believe it would be a Great first step to lining up a team..

  • Columbus, OH · Member since 2018 · 164 posts · 126 votes
    5y

    @Juan Rivera

    Here are few

    REI Nation (formerly Memphis invest)(bit expensive and numbers didn't meet for me)

    Memphis turnkey properties (I have 2 with them)

    Norada real estate (I have 2 with them too)

    Let me know if you need anything else .. I can share few more details

    Cheers

  • Rental Property Investor · Brea, CA · Member since 2020 · 8 posts · 0 votes
    5y

    @Sachin Amin

    Memphis Turnkey Properties is one of the companies I’m looking to invest with.. do you mind if I message you for more info regarding your purchases with them?

  • Columbus, OH · Member since 2018 · 164 posts · 126 votes
    5y

    @Juan Rivera

    Absolutely and I can refer you to the sales person I worked with..

  • Rental Property Investor · Carlisle, PA · Member since 2013 · 1k+ posts · 543 votes
    5y

    @Juan Rivera, welcome to BP.  I would suggest listening to the BP Podcasts.  Many of them discuss out of state/area investing.  Then start analyzing markets, choosing one, and building your team: realtor, lender, contractor, property manager or reach out to several of the tk companies mentioned above.  Good luck!!

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    5y

    @Juan Rivera yes my advice is very simple. Don’t buy turnkey property long distance. It’s not a good investment

  • Mesa, AZ · Member since 2016 · 3 posts · 2 votes
    5y

    @Caleb Heimsoth I am wondering what your thoughts are on OOS turnkey. You say it's not a good investment; do you have a bad history with it? Or know people who do? Just wondering if you could expand as I am in a similar boat with @Juan Rivera in this strategy. 

  • Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y
  • Investor · Ferndale, MI · Member since 2013 · 130 posts · 41 votes
    5y

    @Juan Rivera, I have a few rental ready properties in Metro Detroit with solid management in place. B and C areas that see great cash flow. If you would like to learn more about the Metro Detroit Market and the properties I have for sale, feel free to reach out.

  • Real Estate Agent · Detroit, MI · Member since 2016 · 82 posts · 52 votes
    5y
    Originally posted by @Carson M.:

    @Juan Rivera, I have a few rental ready properties in Metro Detroit with solid management in place. B and C areas that see great cash flow. If you would like to learn more about the Metro Detroit Market and the properties I have for sale, feel free to reach out.

    I can vouch for Carson, he is solid. 

  • Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    5y

    Let me know if you need help. I bought turnkeys back in 2013.

  • Rental Property Investor · Brea, CA · Member since 2020 · 8 posts · 0 votes
    5y

    @Sachin Amin Did you get my message? I wanted to inquire who you used and your experience. Thanks

  • Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
    5y

    @Juan Rivera Here are answers to your questions below in Bold. I'd be happy to chat personally DM me if you want. 

    Any advice on steps to take BEFORE making our initial purchase?

    get pre-qualified with a lender. I would recommend Aaron Chapman or Greg Iverson

    Read books listed to the BP podcast religiously

    Have a reserve fund

    Try to house hack and invest where you live. Go to your local REI

    Did you create a legal entity BEFORE you made your first purchase?

    If you are getting a conventional loan you need to purchase in your personal name because you will be personally guaranteeing the loan. You can then a few months after ownership quit claim into an LLC. So no don't make a legal entity before you buy if you are going to get a conventional loan. if you are going to pay cash maybe. You live in Brea CA so there are some big expenses there you might want to consider with an LLC vs owning in your personal name so if I were living in CA. Personal opinion if owned less than 5-10 doors I would not get an LLC and just make sure to have good insurance policies. 

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