Any advice on where to find turnkey investment companies in Wisconsin (and where to vet them)? I'd be looking for single or smaller multi family properties that are turnkey ready, and property managed by the same company who sold them. We live about 30-40 minutes west of Milwaukee, so I'd prefer companies that have properties within 1-2 hours of here. Pretty much the lower southeastern corner of the state, starting from Madison. If you've had a bad experience with a turnkey company, that would also be helpful to know. Please & thanks!
Try Welcome Home Milwaukee. Matt and Ed will take care of you.
Reach out to Smart Asset Realty. They specialize in exactly what you are referencing.
@Samantha Ruiz - be careful with turn key companies. The business model incentivices the turn key operator to save cost on the rehab, inflate the ROI and - obviously - sell the property for the most amount of money. The purchase price is often not based on comparables, but on the income of the property. It's realtivley easy to find a tenant, who will pay a little but more in rent, because they have some issues in their background or they are in a bind and needed a place urgently etc. Same is with the remodeling - I estimate that more than 25% of our rehab cost typically is spent on things inside the walls - new water lines, new sewer pipes, new electrical, sometimes corrections in messed up ductwork. Just like a good flipper, a turn key opererator has to focus on items that are visible to the buyer. Typically you will see a brand new kitchen installed over old plumbing in the walls and now you can't get to it anymore.
I rarely buy flips for that reason, the last one I bought we had about 6 grand in plumbing and electrical upgrades (I knew that when making the offer) right away before putting it in service. What I just found out a few weeks ago is that they cut corners on the new roof - the backside has been bumped out, so now its only a flat 3 pitch, which makes it shed water not very well, and without ice and water shield underneeth the wind is pushing water up between the shingles and I have wet drywall and wet insulation in a house that is occupied. The flipper saved $500 on the roof, 2 years later I have to tear it off and replace it with a membrane, plus take the soaking drywall down an deal with that mess. No home inspector would have found this.
Its always best to buy properties that have been remodeled by the owner occupant; you know they have been watching the contractor like a hawk and stuff has been done the right way.
I have to agree with Marcus. I personally don't know of any Turnkey operator's to recommend, but I have honestly never considered it as an investment option and sought them out. The one's previously suggested could be Excellent. Do your due allegiance. I prefer the idea of creating equity. For me it is the smart play.
@Samantha Ruiz Google the local providers and then dialogue with them. This is will allow you to weed some out for inefficient communication. Also, you will be able to get solid recommendations from your local REIA.
I get you are busy, but I would never consider buying turn key, If that was what I needed to do, I would just invest in index funds, the value add proposition in buying a below market deal increases your return massively. For me I need great cashflow and equity on every purchase. Turn key is like buying a house someone flipped, you pay top market, and often is substandard quality. you are much better off buying a marginal deal that needs a rehab, and managing the rehab, at least then you have control of the quality you decide to use, and if you scale you can create uniformity to your portfolio.