Turnkey Company in Arizona recommendations

11 Replies

I am trying to find a reputable turnkey company within Arizona.  Can you please provide recommendations please?  

Yes, I understand the pros and cons of turnkey companies.  I tend to get a lot of mixed reactions when I say I'm going to use a turnkey company.

Thank you! :)

Cynthia,

You're not really going to find much, if anything, available in terms of turnkey in Phoenix. The turnkey model tends to work better in areas with lower-priced properties that allow for the turnkey company to profit as well as the investor.

Why are you looking for a turnkey property? I can see buying turnkey's out of state, but locally I don't see the advantage. I'm sure there are some good turnkey's, but many slap together bad rehabs, throw in some tenants, and sell them at a hefty profit. There is a misconception that turnkey rentals are passive income, they are still a business and you have to stay on top of the property manager.

As always, don't trust the internet, seek professional advice. Good luck!

I don't know of any turnkey companies there anymore. There were some back in the day (~2010ish) when the market was conducive to cash flow, but it's not really now so the turnkey model can't really be supported.

Why turnkey?

Originally posted by @Cynthia Andersen :

I am trying to find a reputable turnkey company within Arizona.  Can you please provide recommendations please?  

Yes, I understand the pros and cons of turnkey companies.  I tend to get a lot of mixed reactions when I say I'm going to use a turnkey company.

Thank you! :)

 Hmm, not sure what you are looking for but these are turnkey in Phoenix. Look at the spreadsheet for numbers

Average Cash Flow Per Door In Phoenix Metro Area

https://www.biggerpockets.com/forums/600/topics/58...

@Bob Okenwa -  thank you!!

Good point @Matt Shields - I wanted a company to buy, rehab, get rent ready and mange for me. I am new and think this might be a good way to get started. I thought it might be a better way to learn the process if I was local. 

Thank you @Ali Boone - turn key due to all the pros involved. I don’t have experience or a team in place yet and don’t want to push off getting started. 

Thank you @Mike M. !

Originally posted by @Cynthia Andersen :

@Bob Okenwa -  thank you!!

Good point @Matt Shields- I wanted a company to buy, rehab, get rent ready and mange for me. I am new and think this might be a good way to get started. I thought it might be a better way to learn the process if I was local. 

Thank you @Ali Boone - turn key due to all the pros involved. I don’t have experience or a team in place yet and don’t want to push off getting started. 

Thank you @Mike M. !

Be careful out there! While there are good turn-key companies, this industry is fraught with fraudsters. Investment Property Experts (IPX) is a well known turn-key company in Arizona. They advertise a lot and even had a radio show. I used to listen to the show, it was really good and made me want to invest with them. I thought maybe I was doing it the hard way when easier profits were to be made. 

Unfortunately, I found that the owner had lost his mortgage and real estate license in Minnesota for equity stripping, breach of fiduciary duty, incompetence, fraud, lack of disclosures to consumers, and violation of an order to produce records, other forms of misconduct, and is permanently barred from mortgage origination or servicing. 

Recently, the Arizona Corporation Commission served IPX with a  cease and desist order and it appears that investors money is at risk.

If you need help, just let me know. Not all rental property needs rehab, and there are property managers if you don't want to manage the property. I would also suggest that you read some books on rental property investment and management, but you don't need to pay thousands to a guru. Good luck!

Originally posted by @Matt Shields :
Originally posted by @Cynthia Andersen:

@Bob Okenwa -  thank you!!

Good point @Matt Shields- I wanted a company to buy, rehab, get rent ready and mange for me. I am new and think this might be a good way to get started. I thought it might be a better way to learn the process if I was local. 

Thank you @Ali Boone - turn key due to all the pros involved. I don’t have experience or a team in place yet and don’t want to push off getting started. 

Thank you @Mike M.!

Be careful out there! While there are good turn-key companies, this industry is fraught with fraudsters. Investment Property Experts (IPX) is a well known turn-key company in Arizona. They advertise a lot and even had a radio show. I used to listen to the show, it was really good and made me want to invest with them. I thought maybe I was doing it the hard way when easier profits were to be made. 

Unfortunately, I found that the owner had lost his mortgage and real estate license in Minnesota for equity stripping, breach of fiduciary duty, incompetence, fraud, lack of disclosures to consumers, and violation of an order to produce records, other forms of misconduct, and is permanently barred from mortgage origination or servicing. 

Recently, the Arizona Corporation Commission served IPX with a  cease and desist order and it appears that investors money is at risk.

If you need help, just let me know. Not all rental property needs rehab, and there are property managers if you don't want to manage the property. I would also suggest that you read some books on rental property investment and management, but you don't need to pay thousands to a guru. Good luck!

 Good find on the IPX Temporary Cease & Desist. Turns out this is for a Mexico project at Rocky Point with a Mexican partnership. He was (raising money) Offering Promissory Notes at 15% Interest, (not selling real estate). Turns out they don't own the project they are Borrowing money against, the partner owns the property.

He apparently didn't confirm that local Arizona investors were accredited (which is an IRS term, that they have lots of money and he didn't provide certain disclosures.) I think the problem isn't at all related to what the Original post is all about, but it does apply to anybody considering Syndication (like investing in apartments). 

You can't legally solicit & raise money from people you don't know unless you follow very specific filing & disclosure steps. 

You CAN however, sell property you own, as a turnkey. These are very different things.

Originally posted by @Cynthia Andersen :

@Bob Okenwa -  thank you!!

Good point @Matt Shields - I wanted a company to buy, rehab, get rent ready and mange for me. I am new and think this might be a good way to get started. I thought it might be a better way to learn the process if I was local. 

Thank you @Ali Boone - turn key due to all the pros involved. I don’t have experience or a team in place yet and don’t want to push off getting started. 

Thank you @Mike M. !

You might consider educating yourself and putting some money into a syndicated apartment deal. Before I get attacked, Yes, I syndicate apartments. However, that is the only CF left on Phoenix MSA. SFR model doesn't work.

My wife works with a number of investors. Yes, they are still buying. They are putting a lot of money down, and they are buying quality. Just yesterday I happened to be in the car when she needed to stop over at a property she is under contract on to take some measurements for one of her investors. He is an out of town guy and buying this sight-unseen, but they do a lot of business so there is a lot of trust. And then there's me...

This is a condo in Chandler. He is under contract for low $200's. He is going to dump $100,000 into it. The thing will rent for $1,450. He will CF about $750. It needs carpets cleaned and appliances, aside from that it TK. Patrisha will list it on the MLS and he'll have 5 applicants in 24 hours in that location. It pencils to about 9% COC, before the paper losses, and obviously, he needs to store cash.

Feel free to reach out if this sounds interesting. Patrisha won't manage it for you, but she can help you set it up.

Mike, I agree that selling turn-key rentals doesn't involve securities but with the owner of IPX being barred from having a mortgage or real estate license in Minnesota, a cease and desist from Arizona, and complaints mounting from his turn-key rentals, I would be very cautious purchasing any property from him. 

I don't think you will find turnkey sfh that will cashflow there. I am looking at 100k apartments that only rent for 700 a month :(

@Cynthia Andersen - I am a property manager in Phoenix, and I own a 4-plex and a 5-plex that are currently undergoing renovations. The 4-plex will be finished first and will rent for $2,900 per month. My asking price will be $315,000. The 5-plex is going to take a minute because it is a fire property. PM me if interested.

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