Looking for TurnKey Company recommendations

Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes

I am in San Diego looking to invest in Memphis, Kansas City or NW Indiana and would like recommendations for Turnkey Companies. I'd like to hear about your experience with the company, why you chose to work with them and how well the property has been managed. Any tips for choosing a turnkey company will be appreciated!

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Douglas SkipworthBusiness Member

Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes

10y

Hi, @Jen Hoang.

For turnkey in Memphis, I recommend that you check out the following companies.

Discount Property Warehouse - Robert Feol and @Stephen Akindona

Buy Memphis Now - @Curt Davis

Memphis Turnkey - @Alex Craig (as mentioned above)

Mid South Best Buyers - Terry Kerry

Memphis Buy and Hold @Derrick Craig

Memphis Invest - Chris Clothier

They are all top notch.

Best of luck to you!

Investor's Guide to Memphis Real Estate

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Adam Bontrager
Investor Relations Manager · Cleveland, OH · Member since 2015 · 117 posts · 50 votes
10y
@Jen Hoang
I'm not familiar with any great Turnkey companies in the areas you specified (although I'm sure they're there). I would encourage you to look into the Cleveland market as well. Cleveland is experiencing a renaissance and the market is perfect for investors.
There's a lot of people moving into Cleveland (especially younger demographics) and the demand for rentals is strong. Additionally, the buy in for investors is very affordable.
I would love to discuss some of the phenomenal opportunities available. Feel free to reach out if I can be of any assistance.
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Account Closed
Developer · San Diego, CA · Member since 2015 · 24 posts · 12 votes
10y
@Jen Hoang, have you checked out turnkey-reviews.com? Brie and Jay are bigger pockets regulars and I've listened to all their podcasts and spent many hours on their site.
***Note, I have not been paid in any way by them, just a genuine reference
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Jen Hoang
OP
Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes
10y
@Account Closed I've checked turnkey-reviews.com. It's a great resource! Just wondering if anyone had other companies they could recommend that weren't listed on that website.
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Marty Bosse
Financial Services / Real Estate Investor · Hanahan, SC · Member since 2014 · 34 posts · 44 votes
10y
Jen...call Alex Craig at Memphis Turnkey Properties and have a converation. I am 100% satisfied working with them.
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Douglas SkipworthBusiness Member
Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
10y
Hi, @Jen Hoang.
For turnkey in Memphis, I recommend that you check out the following companies.
Discount Property Warehouse - Robert Feol and @Stephen Akindona
Buy Memphis Now - @Curt Davis
Memphis Turnkey - @Alex Craig (as mentioned above)
Mid South Best Buyers - Terry Kerry
Memphis Buy and Hold @Derrick Craig
Memphis Invest - Chris Clothier
They are all top notch.
Best of luck to you!
Investor's Guide to Memphis Real Estate
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Account Closed
Developer · San Diego, CA · Member since 2015 · 24 posts · 12 votes
10y
@Jen Hoang, I haven't bought from a turnkey company yet so I can't offer great advice. However, the closest I have come to buying in was with Alex Craig with Memphis turnkey, he is also on bigger pockets and I met with him here in San Diego, and he has been very responsive ever since.
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Steven Gesis
Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
10y
Have you considered the Cleveland, Ohio market ? Its not even so much about the market, its about the people you are partnering with and seeking to place your investment in their hands and want to insure they are being good stewards of your investment.
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Jen Hoang
OP
Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes
10y
@Steven GesisWhich turnkey company have you worked with?
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Steven Gesis
Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
10y
Originally posted by @Jen Hoang:

@Steven GesisWhich turnkey company have you worked with?
Jen, I have worked with several around the country as I invest myself and like to diversify my portfolio, however, it is packed with many many properties in the Cleveland area. For Cleveland I recommend checking out the Marketplace on BP.
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Michael Lee
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
10y
Hello and welcome to BP! Look for an experienced and a company that has been successful for years. I like Memphis Invest and have talked to them a couple of times. I like the way that Chris Clothier talks and I do believe what he says. They seem to know what they are doing. The fact that they are a family business gives them great reputation. I am 59 years old and I found BP about 6 months ago and I am still trying to decide what to do for current and long term returns. Because of what has happened to me I am afraid to work or comit to full time. I am pretty smart and very knowledgable. I have been in the construction business since I was 17. I got a college degree in business that emphasized real estate. That same year that I graduted, in 1980, I got a broker license but I stayed in construction. My father was in real estate for about 40 years and I learned a little bit from him. Whoever you decide on just make sure you check them out. They should never guarantee anything. If you think I can help you any other way please contact me at any time. Good luck!
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Jen Hoang
OP
Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes
10y
@Michael LeeThanks for your input. I am going to a Memphis Invest Seminar this weekend :-)
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Jen Hoang
OP
Investor · San Diego, CA · Member since 2015 · 96 posts · 37 votes
10y
@Douglas SkipworthThanks for the list!
1 Reply
Michael Lee
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
10y
I would too if I could walk. I hope you have a good time.
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David Green
Investor · La Grange, IL · Member since 2015 · 64 posts · 9 votes
10y
Check out @Sharad M. for NWI. He has some nice turnkey properties.
2 Reply
Henry J.
Monterey Park, CA · Member since 2014 · 157 posts · 80 votes
10y
Hi Jen, Do you know which market you want to invest and why? Remember to account for travel cost unless it's a city you like to visit. That's one thing we didn't account for when we started - we would have started in a location we want to visit more often! We have 1 Memphis property with Alex Craig and working on 1 more. Alex is extremely responsive and helpful. We are also working with Douglas / Crestcore team on a BRRR type experience. I met with Memphis Invest team before but I couldn't get the numbers to work with my assumptions. I think Mike D'arrigo of Pinnacle investment has properties in KC. He's pretty active on BP from what I can tell. Good luck! Henry
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Jen Hoang you will find literally 100 plus turn key providers nationwide.
really comes down to the team and PM..
Most of the markets the numbers will pretty much match up.. although when we use our comparsion function on our turn key review site it does show that tax rates can be much different in some markets.
good news is its a buyers market when it comes to turn key.. you have plenty to choose from.
and I like what Chris C says from Memphis invest never be in a hurry because its not like there wont be a house for you at anytime you want to buy .. just make sure its right for you
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
10y
@Jay Hinrichs There are 100's, but how many are worth actually doing business with?
Thank you @Henry J.@Marty Bosse
I can go on and on about things to look for. There are good ones and there are certainly crummy ones, but that is any business. The main thing is the team and the management.
901-848-9028
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Alex Craig very good points.
I look at when I started funding turn key in 2001... by turn key I mean those who buy homes in their home market and then sell them to others who do not live in the market.. they live predominately off shore or in CA or upper east coast IE markets were the investor trying to get started is priced out of their local markets and seek places were they can buy a home with the 20 to 30k they have saved up for a down payment.
As you so correctly state the market changes and evolves.. there are darn few who have been in the business in the same configuration for over a decade.. they have either moved on... changed industries etc.
This is why for the investor PM is SO critical... and you need that back up PM as well.. many turn key companies go into PM not because it makes money but out of necessity to keep client satisfaction up. if they grow it over a long period of time like MI has and maybe you have ( I have no clue how big your PM side is) it becomes a profit center.. Chris makes no bones about that...
One of the most tramatic events for a out of area landlord is changing PM's either their turn key company went out of business and folded PM or PM company folds.. seen that many times.. so you always want to have a pulse on who you can move to if needed.
The marketing of turn key is as you state Alex a very fluid thing with turnkey marketers who are really just real estate brokers but for some reason kind of hide behind a veil of non disclosure until you deep in the deal... And we have seen this one BP the marketing companies get involved with who pays them the most .. that TK or rehabber if you will is not the best and their client suffers..
My intent with our little site was to give the buyer a chance to actually talk with the actual providers like you are.. go to the source as it were.
Some of my longest tenured clients who do a fabulous job for their clients are totally under the radar .. they are not on BP they are not on our site.. they have no website... And they are so good that they get business generally now by referral only... I call them the smaller boutique companies. And if really comes down to the quality of the operator as well. whats their background.. education etc. did they just move to the area or were they like you ( I am assuming since you mentioned 1955) you were born and raised in your market... this alone is one thing that runs through my best vendors lifelong in the market never going to leave and its their lifes work.. that's important.. not some one sitting in sunny CA Hawking properties they never have seen LOL.. but I get both sides of it.. I have been a broker for all these years.. and sold 100's of properties is did not own.. but it was in the course of the normal RE brokerage business.
As for appraised values.. for me mid west appraisals are nice but it really is only about willing buyer willing seller appraisals are really just for information.. if you think just because you have an appraisal on a mid west asset that you could easily put it on the MLS and sell it for 98% of your appraisal that I think is a fantasy.. If there were not hundreds of TK companies selling your local product to out of state folks in all markets not just yours.. the values would be drasitically different. you create your own market when you do this.. its not a real value based on MLS like we would have on the west coast were we have exactly ZERO turn key companies.. WHY they are not needed you simply list it on MLS sell for 98% of list or higher and down the road you go.
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Conrad Z.
Investor · chino hills, CA · Member since 2008 · 13 posts · 5 votes
10y
I can vouch for @Alex Craig, with MempisTurnkey. Top-notch communication (which is huge when you live across the country) his team is solid and they walk the walk being investors themselves. Most importantly I can count on an honest response as far as neighborhoods to invest, contractors, or any other "inside" info coming out of Memphis. PM me if you want details.
2 Reply
Patrick Young
Real Estate Investor · Springfield, VA · Member since 2014 · 41 posts · 17 votes
10y
I have been looking into turnkeys for some time now and have gotten discouraged. The great cash flowing Midwest seems like smoke and mirrors to me. I am looking for properties 100k and up in somewhat better school areas. When interviewing turnkeys all seems good but as I verify properties and areas I become discouraged either by very high list price, overstated rents, poor schools. When I really dig in I am coming up with COC returns 6-8% and this is with modest maintenance reserves. Pro formas never account for lease up fees as well. I guess this is true of any PM property so nothing to do with TK but unless your tenant stays about 3 years you are getting killed in vacancy and lease up fees. Just adding to frustration. If I could find a true A property in pretty good schools at 1% rent to value rehabbed I would buy a lot of them. Is that out there?
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
10y
@Jay HinrichsHow many of those companies you funded are still around? I would say the TK providers still here and have been operating for the past 5 years or more, will stick around as they were savvy enough to transition from $0 down to all cash / conventional financing. If the TK provider has in house PM with a good reputation and offered this service from day 1, then that is a good sign they the PM is a long term focus.
901-848-9028
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Alex Craig great question
1. Detroit    NONE funded 4
2. Indy        One but there is new blood and one of them worked for the one I funded.. funded 4
3. Memphis  I did not fund for you or chris or that other big family but one of the ones I funded is still up and going and we are still at it. funded   3
4. Jackson   One. and I use to fund 5 or 6 in this one market.
5. Birmingham   One funded 3
6. Altanta   None funded 2
7. charlotte   None funded 1
8.. Chicago None but new one's working   funded 2
9. St Luis none funded 1
10 Columbus None funded 2
the BRRR method which left investors with no cash in the deals created a mess for the industry. .but I see that coming back strong now and I just cringe.. nothing like having 15 to 20k into a deal to keep them in the deal.
The Ones that made it through the 3 years were there WAS NO FINANCING were one's that targeted foreigners.. ( very prevelant in Memphis) and you know the one' that did that.
Hammered on IRA buyers.. and then prices crashed in some markets that it was cash only.
now we have financing back in the picture I just closed 3 last week ( I got paid off) in Birmingham were the buyers got in for 30% down 4.75% fixed 30 years.. the new TRIDS spell out their terms.. so its cool I can see exactly what people are doing.   I like this.. payments were about 225 a month on rental income of 800 to 900... so if management can do a decent job.. ( and tenants can be nice) those numbers work and offer some stability for the investor...
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Alex CraigBusiness Member
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
10y
@Jay Hinrichs I feel for the investors who bought in Detroit. I am not knocking Detroit or anyone who owns in Detroit, but this has been a city in decline for years. I would assume there are/were opportunities in the burbs. I am referring to those who bought in the T areas. I call areas "T" areas were a F rating is to generous. I can't take credit for that. My 5th grade teacher wrote a "T" on I believe an English assignment once and I asked her what a "T" is and she told me it was not worth of an "F".
901-848-9028
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Alex Craig I started in the industry in Detroit... great bones all brick homes built in the 30 40 50 by basically Germanic craftsman of the day.... really great product.. values were 100 to 150k in 2001. we lent usually about 60 to 75k per deal.. BRRR refied out at 75 to 95k... rents were 1% rule.
but it was a tough rental market then and rehab market.. rehabber crew needed armed security at the homes to keep thefts in check.. PM office ( owned by contractor) parking lot surrounded in razor wire front window bullet proof with slide draw like a prison to put your rent into .
I got out of their when I followed my TK company to INdy.. houses not as nice but areas not as mean. I did get stuck with 2 OREO there in Detroit and lost about 100k.. I rehabbed them once only to have them destroyed within 45 days ... so I just let them go for tax's.. these same areas no doubt are the homes you see on line fo r2 k to 15k.. its sad really... no question there is flight to the burbs but that is every city I worked in and mentioned above. they all have areas like that just not so pronounced .
@Patrick Young you can get 2 of the 3 your looking for but your not going to get great schools at those price points.. too many renters... another education I got was how many acadamys there are in these areas and so many do not send there kids to public school they send them to acadamys WE have very little private school options on the west coast but in the mid west its common and accepted ... Renters by and large cannot afford acadamys so you have low school scores just the way it is.
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Patrick Young
Real Estate Investor · Springfield, VA · Member since 2014 · 41 posts · 17 votes
10y
So Jay Hinrichs you think I should eliminate school ranking metric in places like KC, Indy? Replace with high owner occupied neighborhoods? Whatever drives long term tenants who are respectful is what I want. Thanks
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