I own a property in the Birmingham area through a turn-key company. I haven't been very pleased with my experience with this company, especially when I compare it to the great turn-key experience I have in Memphis. I have a plan to buy a couple more properties in Alabama. One company that was recommended to me by my turn-key company in Memphis was ROIPGM - http://richliferealestate.com/
I have talked to one of there people, and he seems like a really nice guy, but I don't want to make another mistake. Does anyone have any experience with this company and their PM - AHI Properties?
Any other recommendations?
Hello Daniel, I purchased a property from ROIPGM October 26th 2017. The property manager is AHI. This is my first property with them and I am still not sure what I think about their turnkey service.
My property is still vacant. It has been marketed for rent since August 2017. So, this is a bit disappointing. AHI just took over their property management in November 2017 so I know there really isn't any history with them.
Did you decide to purchase a property with ROIPGM?
What turnkey provider did you use in Birmingham?
Have you looked into Spartan Invest? I just got a few houses from them. So far a positive experience.
Hi Rob, I actually am in contract on my first property with Spartan Invest. Rehab should be done this month and then we'll close. I like what I have heard so far about Spartan.
How long on average were your properties vacant? and did you the rent you were expecting?
Keep in Mind B ham if you have section 8 tenant their section 8 department is slower than most in the Deep south this can lead to some lag time.. PGM has good ethics and will endevour to do the right things from my experience with them.
I am sorry I didn't respond earlier but I rarely get on to Bigger Pockets. From what I have heard, Spartan puts out some great properties and has great service, but I don't know them personally. My team is unique from most turnkey providers because we refinance whatever we don't sell, so every purchase we make we would be fine to hold in our own fund.
Regarding our PM company, we only switched our properties to AHI around mid to late September. We were formerly working with another PM company. We didn't start referring our clients to AHI until mid to late October. We have been very pleased with their work especially because they inherited a number of problems that rolled over from the former PM company.
Eddie, I am sorry to hear that your property hasn't rented yet. We do everything we can to get the houses turnkey, but the last and perhaps most important step of renting the homes is up to the PM company. We used to do the PM piece in house, but found that our staff didn't meet my own expectations. I manage several hundred homes in a fund and couldn't afford to have mediocre Property Management, so we rededicated our efforts to find a PM company that could do it better than us. The first was not a success, but we feel the second, AHI, is very much a success. They are knowledgeable, capable and hard working. Time will ultimately tell. Nationally I have worked with over 2 dozen Property managers over the past 10 years and have found that property managers can be excellent one year and terrible the next, so, long story short, turnkey doesn't mean hands off. You'll have to keep your eyes on your investments in the future for as long as you have property in any market.
One other thing I recommend to turnkey buyers, and I have made it a point with my team to emphasize, is the need to purchase a rented home because you can never be sure when a house will rent. I have even switched my stance to actively discourage buyers from buying vacant homes. I differ from many turnkey sales companies in that they want a newly rented property or one that is vacant to be sold to their clients. I personally believe a tenant with 4-12 months of on time payments is a more valuable asset to the new buyer because it shows a tenant can and will make payments in a timely manner.
In addition, the rental market is the hottest from March to August so September through February usually experiences a slow down due to school starting and the holidays which may mean that homes purchased in August or September may sit vacant until the spring.
@Eddie Knoell - I am new with spartan. I got my first under contract last summer and am under contract on the second, so I have not had the vacancy or maintenance problems yet.
For my first one I was pleased: The appraisal came in at $1500 above purchase price. They had it rented out a few weeks before closing (nov 2017) and they got $25 more for rent than the original projection.
$97500 purchase price for a 3/2
$950 for rent
Thanks Rob Fuller for the response on this forum, I really appreciate it. You mentioned that you now encourage investors to purchase rented homes, how does that logistically work with the ROIPGM process? Aren't most of your homes rehabbed? Are you saying that you recommend your investors to wait to close on one of your rentals homes once the rehab is complete and the PM gets a new tenant in there? OR is ROIPGM looking for homes that won't need rehab and have an existing tenant?
Look forward to your reply. Thanks
Hi Rob Hakes, thanks for sharing your Spartan Invest experience.
I think what Rob is saying is that it's less headache for everyone to only sell properties that have the tenants in place. ROIPGM did 250+ homes in the last year and a 40 unit apartment complex, and as part of the growth from excellent revues and a lot of client referrals property management became a problem. That's a crucial part of the business as you have experienced. A national vendor that had a huge staff and were in multiple states was going to be a great solution, but AHI I believe is absolutely outstanding. Bryan Jenkins is a one of two Master Property Managers (a very difficult designation to obtain) in Alabama and he does an excellent job. I believe this is the first time I have heard of this dilemma. Please communicate immediately when you have any issues, we want to solve the immediately.
Recently I made some huge improvements by getting rid of general contractors and managing sub contractors myself. The cost savings has allowed us to put together properties with even higher renovation standards than before (new kitchens, tiled backsplash, stainless appliances, granite countertops, completely gutted and redone bathrooms) while still having many homes in the $82,000-$99,000 range. Here is an example:
My property manager contact at AHI has been Doris Tucker in their Huntsville office. The home I purchased was marketed for rent by Renters Warehouse in July 2017 through October 2017 and then AHI took over right before I closed on October 26th 2017.
I would be happy to speak to you about it. I will private message you if you would like.
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