Investment groups that help you find deals

13 Replies

So I was talking to a buddy of mine he tells me he has joined an investment group that helped him find a turn key property in plainfield NJ not the best area but nonetheless a good rental area. The place is already rented supposedly and doesn't need much but maybe 20 k in cosmetic fixes mostly. 

So fellow members my question is there such thing as and investment group you pay to join in his case 6k and they find you the deals and do all the leg work? from what he explains it sounds like they are wholesaling to find this properties. 

Does anyone know where I can find this groups and join. I would definitely  consider paying a membership fee if its worth it. I mean the fact they do all leg work is worth it. I work full time job is kind hard to wholesale and direct mail for me right now so this wouldn't be bad idea. 

I've told him I am interested in joining but he hasn't gotten back to me on that. 

What  you guys think?

Sounds like a total scam you have to trust these people to give accurate numbers which they almost certainly won't and they could well be wholesaling and charging the fee at the same time and/or saving the best deals for themselves.

Yes. There are groups, like ours, that help their members find deals. However, you must treat the deals you get that way just like any other deal. Run the comps, run the rents, look at your cash flow and equity capture. If the deal works do it if not don't. You can find groups at www.nationalreia.org.

@Andre Fierro I think this is a terrible idea. Why would you pay $6K to join some group that will supposedly find you a property? Why not just find a good turn key company that doesn't charge you a membership fee to work with them? What happens after you pay your $6K fee and they don't find you a deal?

I guess his paying the 6k fee for them finding him properties @ wholesale prices. His also getting services “such as lawyers fees,finance, construction.They find you a property that u like in your budget.They get u your permits”

The story is this guys. He bought the 2 fam house for 250k it goes for 325k and if he fixes all the cosmetic things it boosted it up to the 400k area. He plans on adding adding half bathroom. House already has separate boilers, gas, and water tanks, Updated wiring and panels. Its already been converted to gas He Can get at least 1500 per unit. He put 20% down payment.

I don't know guys but to me sounds to good to be true so I just thought I share the story. I guess the best option for me in finding deals is through our agent and mls listings. I guess I can also use turn key services but wouldn't those be on the high end price?

I guess my goal here is finding or making sure I am using every resource possible in my situation for finding deals. When time allows it and when I’ve gotten my feet wet enough with a few deals and I don’t half to work a mandatory 40 hrs a week I can look into wholesaling hopefully.

Originally posted by @Andre Fierro :


I don’t know guys but to me sounds to good to be true so I just thought I share the story. I guess the best option for me in finding deals is through our agent and mls listings. I guess I can also use turn key services but wouldn’t those be on the high end price?

A turn key is not necessarily going to be any more on the high end price than a similarly rehabbed property on the MLS. Good turn key companies don't make their money selling above market value. They make their money by improving the property and forcing equity which is where their profit comes from.



 

Originally posted by @Andre Fierro :

So I was talking to a buddy of mine he tells me he has joined an investment group that helped him find a turn key property in plainfield NJ not the best area but nonetheless a good rental area. The place is already rented supposedly and doesn't need much but maybe 20 k in cosmetic fixes mostly. 

So fellow members my question is there such thing as and investment group you pay to join in his case 6k and they find you the deals and do all the leg work? from what he explains it sounds like they are wholesaling to find this properties. 

Does anyone know where I can find this groups and join. I would definitely  consider paying a membership fee if its worth it. I mean the fact they do all leg work is worth it. I work full time job is kind hard to wholesale and direct mail for me right now so this wouldn't be bad idea. 

I've told him I am interested in joining but he hasn't gotten back to me on that. 

What  you guys think?

 Well for starters there are a ton of really popular turnkey markets across the USA. Cleveland is the one I am most familiar with so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

In addition to those listed above there are tons of other turnkey markets out there Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets. In no particular order I have listed some of the most popular markets for out of state investors

  • Cincinnati, Ohio
  • Dayton, Ohio
  • Toledo, Ohio
  • Youngstown, Ohio
  • Cincinnati, Ohio
  • Memphis, Tennessee
  • Saint Louis, Missouri
  • Indianapolis, Indiana
  • Detroit, Michigan
  • Erie, Pennsylvania
  • Louisville, Kentucky
  • Milwaukee, Wisconsin
  • Jackson, Mississippi

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly. After doing this I think you'll find more than enough options available to you without the upfront $6k buy in.

@James Wise thanks for giving me some markets to look into appreciate that however for now I’m trying to stay as close to my market as I gain some experience but in near future might come in handy. However Erie P.A is pretty close going good to look into that market.

Not sure about Erie having any turnkey companies.  I live there and never heard of one, so they must not be great at marketing if there is one. I asked James Wise a while back over direct message and got some spam automated response.  So not sure who he was referring to. 

Turnkey isn't my cup of tea. I don't usually think of it as a product to look for near home since it's basically cookie cutter all the work done for you and property management set up. If I were looking at turnkey I'd probably start with Memphis Invest just based on what I've heard, but again, not an area I can claim to know a ton about.