Curious if anyone has any experience with this turn key investment company? Thank you!
JWB built my 1st Home. Everything went very well. Pretty well built home.
No real complaints with JWB. 👍🏻
Good to hear. Thanks Kurt!
Thanks for the info, any more info on these turnkey invest companies is always welcomed. Did you have any damage with the superstorm?
@Brandon Shindler I've never worked with JWB but they are one of the larger players in the area. I have had terrible experiences reaching out to their property managers regarding rentals and making offers on dispositions of theirs.
That being said they may just not like working with other agents.
Did you end up using them?
I am in the process of closing on a deal now, scheduled to wrap up in the next couple of weeks
Hello. I am currently working with JWB. They have great customer service and I was very pulled in by their desire to build a long-term relationship with their investors. In a podcast, they mentioned how typical property managment companies collect first month's rent as a tenant placement fee. I was surprised to read that JWB still does collect first month's rent as a tenant placement fee.
I received an email from JWB yesterday saying not to be alarmed, when in fact the situation was quite alarming. One of the tenants passed away, and they had to vacate. They were a few months in to a two year lease. About $1,300 is being done on the turnover and JWB will be collecting a tenant placement fee. Not too happy about the situation as I was just starting to enjoy the passive income. The situation has also put a sour taste in my mouth and I am reluctant to invest with other turnkey properties. I will continue to update with the progress of the situation.
All in all, they have a great motto to "underpromise and overdeliver," unfortunately, it's been the other way around.
Updated over 2 years ago
I just got off the phone with Gregg, and am feeling much better. I regret my earlier post and wished I would have waited. I am a beginning investor and didn't look at my overall return in investment or remember that vacancy and maintenance are accounted for in ROI. I am reminded of when I began the purchasing process and how I was uncomfortable with a certain situation, and how Mike walked me through the process and spent time clarifying things, making sure I understood. There was no rushing. Having a tenant move out a few months into the lease is unfortunate, uncomfortable, but is also a possibility. I am hopeful for the future with JWB, am appreciative of the time Gregg and Courtney have spent communicating things for me, and feel like they want to develop long-lasting relationships with their clients.
Hi @Rebecca K. ,
Can you clarify what the issue was with tenant placement? What did they charge you?
Typically in Jacksonville tenant placement is 1/2 of first month's rent.
I was upset that I would have to pay the tenant placement fee again since there was a break in the lease. However, after further communication, JWB told me they would be covering the placement fee since it was a unique situation. Not something they would normally do, but a gesture they wanted to make because the situation happened so new in the game.
JWB charges first month's rent for the tenant placement fee. While doing my research on turnkey properties, I've seen one month to half of one month's rent, and somewhere in between.
While it was an unfortunate circumstance, I have been extremely happy with JWB and their customer service. Courtney, Mike, and Gregg do a great job of walking me through the situations and explaining any questions and concerns I may have. Gregg also pointed out to me that I am still on track to meet my ROI.
Thanks for your question, Joseph.
Congrats on your purchase, Pam! Would love to hear how things continue to progress. JWB has been great thus far.
Hi @Rebecca K. to clarify,
JWB placed a tenant and charged one month rent as tenant placement, one of the tenants died (extremely unusual and not something they could have foreseen), the surviving tenant broke the lease and left, JWB did the turnover, JWB placed a new tenant at no charge.
Is that correct? How much do they charge for ongoing management of the property?
Now, they are saying they are not waiving the tenant placement fee. They originally said they were using the security deposit to fund the turn-over and I would get the remainder; that in the end, I might end up with more money. Now they're saying, nope, it's going to the tenant placement fee. They get two in a span of a couple of months, when I wasn't planning on paying a second for two years because I bought the property with a tenant in place for two years.
Bad miscommunication on their part.
My part, it would be better to purchase properties that charge less rent. Second, when working with a new turnkey property, I will start by purchasing only one property.
Partly correct @Joseph Hamaoui. There is still no new tenant in place. Old tenants left July 10 and have not paid July rent. JWB is charging me the tenant placement fee.
Ongoing property management is 10%.
@Rebecca K. 10% seems to be fair market rate here. The property manager I've partnered with for our turnkey projects charges 10% typically with 1/2 of first month's rent for tenant placement. I'm not sure what his policy is regarding tenant placement if the tenant leaves early. I am going to ask him. I feel it's unfair to charge a regular tenant placement for such a scenario but at the same time I understand they have to spend a bit of money and some time to place a new tenant so I'm ok with them getting paid as long as the lease wasn't broken for something they should have caught during the screening process.
Are you looking at other turnkey companies now?
@Rebecca K. thanks for this update. Sorry about the issues your having with JWB. I have looked at JWB myself as I thought they may be a good option for me as I'm getting started. When speaking with Greg Cohen he made a comment that since I live in Jax would I ever want to visit the property, which I found to be an odd question. I mentioned that the only time I would want to visit was when the property was vacant, and he quickly said that wouldn't work for them. He basically said the owner would slow down the process of turning the property over if they showed up at the property. Really strange comment, and I actually thought I miss understood what he said. I explained that all I would want to do is simply walk the property, and he said that really doesn't work for them. He was very nice, and professional on the phone so I was very surprised with this statement. I was ready to do something with them until he made that comment, and now seeing your post kinda makes me glad I passed with them.
Good luck with your property, and I hope everything works out for you.
That is really odd, Jim, especially since they offer up to $1,000 in reimbursement of travel expenses to investors to come and tour Jacksonville and their offices.
Things are still dicey on my end. The unit is still vacant and my other unit has had some maintenance work that will eat up the majority of my cash flow (after the mortgage is covered). It kind of irritated me further because they told me they cover the first six months of maintenance (not something they put in writing but just a nice gesture they make). I was told it's not part of maintenance. Actions and words aren't lining up. I'm just trying to have faith that it will work out. I've also learned my lesson to have inspections done from now on before acquiring a property. It's interesting JWB didn't suggest this.
I'd definitely love to hear what your property manager would do in this situation. You're right, 10% is about standard. The tenants vacated on July 10 and hadn't paid July rent yet. I'd be interested (which I should be able to find out) how long it took JWB to reach out and say, "Hey, where's the rent?"
I have a bad taste for turnkey properties at the moment but if you work with one, I'd always be interested in researching them. Thanks. :)
@Rebecca K. Good luck hope it all works out. Keep us updated.
Thanks @Jim Schock
@Rebecca K. no problem. I'd be happy to connect you with our PM and see what he would do. I'll look for your message and connect offline.
Any more updates on JWB properties? I am looking into acquiring a turnkey property?
@Andrew Frishman feel free to connect directly. I don't work with JWB but I'd be happy to share with you our experiences with turnkey.
These are some very sharp guys. My wife has sold some vacant land to them as she represented the owners. I went to Than Merrill's training with Alex and some of the original guys. Smart and sharp people, I have a friend who is working for them, got out of the big bank churn, but these guys are pretty savvy about their deals. Its a good system for them.
Just received the JWB newsletter, yes they send one out. Pretty impressive, here are their stated, stats:
Current Properties Under Management - 1730
Total Rented houses in 2017 - 759
Average Duration of Leases signed in 2017 - 30 months
Percentage of Resigned Leases in 2017 - 71%
Current Occupancy Rate - 97%
Did anyone have any trouble selling their property after JWB sold them the property? Are these in decent areas?
One alarm for me was that they aren’t ready to give me info on the tenant which would mean I don’t know anything about the tenant vandalizing the property or if they are cutting the lease short etc which would burn more money from my pocket?
They seem genuine per the reviews but these are the concerns I had
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing