I'm looking for a great Turnkey investment. Does anyone know any great companies that are reliable and have good properties?
@John Garcia I recently worked with Martel Turnkey so I would definitely recommend them. They have properties in Cleveland and Memphis and I recently started seeing some properties come up in MO.
Let me know if you want to connect and chat about the purchase process
@Aj Parikh Thank you for the info, I would love to connect with you in regards to the process.
It’s hard to find properties here where I’m located. So I would like to see about this type of investment and see if the numbers work.
Hi @John Garcia !
I recently (October 2020) closed on my first turnkey investment in Kansas City, MO. I had a great experience purchasing this property and everything is going well with regards to numbers so far! I wrote a post of the property. Feel free to reach out if you have any questions about my experience!
@Joseph Schweizer Awesome, I had a few questions regarding the property management and the fees they charge and wanted more information about that since I do not live in those areas.
For the property I purchased, the PM fee is 9%. PM ranges from 8-10% typically.
A new tenant is one month's rent. You are not required to stay with the PM put in place when you buy the company, so you can look for different PM if you are looking for specific rates.
@John Garcia I have experience with Memphis and Little Rock turnkey companies. Great cash flow markets with low price points. Being out of state, I think it is important to look for a company that has been in business a while, good reputation, and has in house property management. I would definitely look at these markets as part of your search.
@Andrew Akins Thanks for your input.
I’ll definitely start looking in those areas.
Do you recommend any TurnKey company’s that you have worked with?
@John Garcia you didn't mention what market you are interested in but regardless of what market you choose, here are some key things to look out for and avoid in any turn key company.
- *Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)
- *Don't allow for your own independent property inspection
- *Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)
- *Require you to pay for any renovation upfront
- *Sell only in cheap. low end neighborhoods
- *Don't accurately represent the neighborhood/property classification
- *Don't have consistent rehab standards for all properties
- *Don't provide a scope of work for the property
- *Can't provide references of repeat investor
- Avoid these with any turn key company and you should do fine.
We have one in Irvington NJ that we have just received the purchase offer. We have not signed the agreement yet. We are bidding on few more distressed properties to buy and turnkey. If interested in NJ shoot me a line. I Will send you more details.