I am thinking about purchasing property form a TurnKey company and like to know any BiggerPockets number ever use rental to retirement company. And if so how was the experience
Check out Memphisinvest.com to get started. They buy the house, renovate it, place a tenant and then sell it to you. A lot of other "turn key" companies will sell you a dump, then make you use their contractors to renovate, then make you hire them for property management. I have never invested in turnkey but the Memphis Invest model seems a lot more honest because they don't make any money until they sell you the finished product. They have around 8,000 rentals in 7 different markets so they must be doing something right.
@Steven Winfield I had talked to Zach to learn more about his offers. The reason I ultimately didn't buy from him yet is that property management is the most important aspect of the whole deal (in my view). If he had a deal that is managed by a company I trust, I would buy from him (naturally only if due diligence pans out).
@Nathan is right in principle about Memphis Invest and I tried to work with them but they never offered me a property even though I had $250K equity + financing to invest. I am working with Easy Street and Freedom Realty right now and I can only advise visiting whoever you want to work with, get to know them, visit the properties in different stages of renovation, read the contracts they offer to you as an investor and what they have for tenants, etc. When you do all that, I think you will quickly see the ones Nathan describes (lipstick on a pig) and the real ones that will still be around when the next crash is sweeping over us.
One last issue to consider: If you want to work with Turnkey you should not have a strategy that is looking for appreciation. I am a long term buy and hold investor because the income is supplementing my retirement income and when I am gone my daughter will inherit the properties. For that, a good TK portfolio with the right partners is the right thing for me.
Thank you for the info it was very helpful. I was listening to the podcast and they mentioned a compass call RenToretiRement. have anyone on bigger pockets got to experience that company or purchase from them.
Another thing to keep in mind is that you are typically paying a premium for a rehabbed house with a turn-key company. I know in my area you can buy a new-ish (2015 and newer) construction home off the MLS for the same margins that turn-key companies are selling older (pre-1980s) rehabbed houses.
So if it's worth it to you to have a tenant in place, that's fine. But personally I don't think it brings enough value to buy the older rehabbed houses with a tenant over the newer construction ones when the numbers are basically the same. The only "downside" with the MLS route is that you will have a property manager place the tenant after closing. I personally prefer this method because you can have a little say over the tenant.
Cassidy justiz thank you for your info
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing