Newbie from Hoboken, NJ

11 Replies

Hello All,

I'm from Hoboken, NJ and I'm looking to learn more in terms of purchasing cash-flow positive rental properties. I'm looking at a strategy of using turn-key companies to purchase homes in mid-west and south. I'm wondering if anyone has had good experiences with that process. I have some limited experience in real estate as I owned a home in the St. Pete, FL area back in 2006 primarily as an investment. I've listened to many Get Rich Education podcasts by Keith Weinhold and find him to be pretty informative. He advocates for several turn-key real estate companies on his website. I'm thinking this would be a good way to get started.

I've worked in the Life Science/Healthcare field for over 12 years and I'm currently VP Business Development for a digital marketing company.

Appreciate any insights.

Best,

Prem

Originally posted by @Prem Schoff :

Hello All,

I'm from Hoboken, NJ and I'm looking to learn more in terms of purchasing cash-flow positive rental properties. I'm looking at a strategy of using turn-key companies to purchase homes in mid-west and south. I'm wondering if anyone has had good experiences with that process. I have some limited experience in real estate as I owned a home in the St. Pete, FL area back in 2006 primarily as an investment. I've listened to many Get Rich Education podcasts by Keith Weinhold and find him to be pretty informative. He advocates for several turn-key real estate companies on his website. I'm thinking this would be a good way to get started.

I've worked in the Life Science/Healthcare field for over 12 years and I'm currently VP Business Development for a digital marketing company.

Appreciate any insights.

Best,

Prem

 Hello and welcome! Best of luck to you!

Hello and welcome to BP!  Sorry, I have no experience with turnkey companies.  But do note that even when using a company, you need to visit your property at least annually.  I'd also suggest something closer by, at least until you've gotten a few properties under your belt.

@Prem Schoff Welcome to BP! Keith over at Get Rich is a great guy, and it's an awesome informational resource. I think, for now, you're doing the right things - just research research research. Of course, being a turnkey CEO myself, I am generally pro-turnkey, but that doesn't mean there aren't some less-than-scrupulous players out there. There are plenty of threads on the forums about TK experiences, good and bad, and which companies people have had good experiences with in different markets. If you've heard of a company and you'd like to know more, there is likely a review thread or three where someone has documented their experience. Alternatively, reach out to a rep here on BP and see if they have any info they can provide.

If you are going to go the TK route, however, remember that the most important factor is the people you work with. Even an amazing property in a hot market can turn into a money pit if the people you have managing it drop the ball. I always encourage new TK investors to narrow down their potential providers to one or two, and then go visit them. Consider it an investment in your investment. A lot of people can talk a great game, but looking someone in the eye and seeing their product in person is absolutely the best way to suss out the gamers from the good guys. 

TK has aggressive proponents and naysayers - so you kind of just have to make sure you know what you're talking about and then be willing to ask hard hitting questions. Don't take other people's opinions or experiences as gospel, do your own due dilligence. This topic comes up a lot, so I won't ramble much further, but here's a link to a thread with some TK company vetting tips: https://www.biggerpockets.com/forums/55/topics/361...

Best of luck!

Clayton

@Prem Schoff  welcome to Bigger Pockets. BP is the place to be for real estate investing. It has everything you need from free online videos and educational courses to having the ability to post blogs and connect with other investors, the possibilities are endless. You came to the right place, I wish you all the best!

@Prem Schoff Hi and welcome to BP! Turnkey is how I got started in my OOS investing, and it has worked well for me, although there were certainly bumps along the road. I started in 2012, and it is ever more challenging to find the right team in the right market during a tightening and more competitive environment. As Clayton said, it is so much about the people you choose to work with, and there are more turnkey teams I would avoid then there are well run and trustworthy operations. And by all means plan on visiting the market and the teams you are considering. All best in your REI!

Hi All,

Thanks for all the great feedback. I'm looking forward to diving more into the BP site and further educating myself. It sounds like turnkey investing is more tricky than I originally anticipated so good to know that you have to be extra cautious for unscrupulous players.

NJ doesn't seem to be a great state for cash flow rental properties. Has anyone had any luck within 2-3 hour range outside of NYC area? Say upstate NY or eastern PA?

Thanks,

Prem

Hi Prem! Have you looked into Binghamton, NY? It's near enough for you, I have a number of investors who live in the NY metro area but invest here. Binghamton has very low appreciation, but has high rents for the price of properties. Please let me know if there's any way I can help!

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