Indianapolis Turnkey Gone Wrong

[Carlos Rovira]

I'm putting this out there for anyone considering purchasing turnkey from Real Estate Done 4 U (i.e. Michael Drew). I just bought 4 properties from him back in November. Two of them had issues. One of them had a tenant that was withholding rent due to deferred maintenance issues that were pretty serious. I was able to stabilize that one but it has cost me a lot of money, headaches, and most importantly, time.

The second property had a pending eviction already when I closed. I was not made privy to this by the seller (Michael Drew), and did not find out about it until the property management took over management and 2 months went by. I am attaching photos of the property so that you can see the condition that it was delivered to me in. No doubt I will stabilize the property and make it profitable, but this totally defeats the purpose of buying turnkey and leaves a sour taste in my mouth. 

For anyone considering buying turnkey from this guy, STAY AWAY. STAY FAR AWAY. The product that he provides is NOT Turnkey. It is value add real estate that he is selling at retail. The complete opposite of what Turnkey should be. 

[Harvey Levin]

@JayHinrichs I have to respectfully disagree with you. I manage 400 class c properties in Indianapolis that are mostly section 8 . I have actively invested and managed locally in Indy since 1980. I have held a brokers listened since 1982 and owned a very successful renovation company for almost 20 years when I sold it. I am also have a CCIM designation. I do not say any of this to brag but to explain my credibility.   I have found that proper vetting of both the property at purchase and tenants are the key to success in any class of property. Class c can be very profitable if the manger has experience and understands the market. Class c can be very profitable if the rehab has been preformed correctly. I believe the problems occur when due to the availability of low cost inventory inexperienced resellers as well as investors make poor decisions. While even with the best vetting problems can occur I see way to many resellers who have never even been to Indianapolis, never seen the neighborhoods or the properties or met the contractors or the quality of their work, selling properties to newbie investors who find themselves out of luck. The class is not to blame, the  lack of due diligence by investors is. Real Estate has always been both a fantastic investment and an industry with a lot of fraudulent activity. The moral of the story is that there is plenty of money to be made in all areas of real estate investing but the buyer beware!!