“Rent to Retirement” Thoughts?

[Parker Thornburg]

Curious if anyone has purchased a turnkey property with Rent to Retirement.  I obviously hear their ads on the BiggerPockets podcast, and the model sounds intriguing.  If anyone has an experience they would be willing to share, I would appreciate it!

[Joe S.]

Quote from @Parker Thornburg:

Curious if anyone has purchased a turnkey property with Rent to Retirement.  I obviously hear their ads on the BiggerPockets podcast, and the model sounds intriguing.  If anyone has an experience they would be willing to share, I would appreciate it!

 There’s quite a number of existing threads for this exact company. Use the search function and you pull up many.

[Zach Lemaster]

@Parker Thornburg

Here are some threads you can reference that have pretty extensive discussions.  Feel free to reach out with any questions.

https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

https://www.biggerpockets.com/forums/92/topics/983659-first-investment-property-with-rent-to-retirement?highlight_post=5677176&page=1#p5677176

https://www.biggerpockets.com/forums/92/topics/929410-rent-to-retirement-updates?highlight_post=5508807&page=1#p5508807

https://www.biggerpockets.com/forums/92/topics/893621-rent-to-retirement-review?highlight_post=5222888&page=1#p5222888

https://www.biggerpockets.com/forums/311/topics/915728-experience-with-rent-to-retirement-turnkey?page=1#p5345200

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study

https://www.biggerpockets.com/forums/12/topics/997350-lessons-learned-from-buying-my-first-rental-property?highlight_post=5748036&page=1#p5748036

https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

https://www.biggerpockets.com/forums/311/topics/883772-turnkey-investing-renttoretirement-feedback-reviews?highlight_post=5171720&page=1#p5171720

https://www.biggerpockets.com/forums/92/topics/950188-rent-to-retirement?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5535505

[Jordan Wight]

I’ve purchased two properties through R2R. They have helped me make connections I wouldn’t have otherwise as a passive investor. There have been hiccups just like any RE investment but R2R helps to smooth the process as best they can. Feel free to reach out to me with more specific questions. 

[Adam Sieg]

Hi Parker - 

I've been investing with R2R for about 2 years now and have had a very positive experience.  I'd recommend reaching out to the team and @Zach Lemaster to get more questions answered and see if they meet what you are looking for. 

I purchased 3 turnkey properties upfront after my initial discussion with Zach and have had good success with each.  2 of the 3 properties out performed their proforma and the other has had some ongoing issues which Zach has helped intervene to ensure I was not responsible for some of the identified issues.  Despite having tenants who were suboptimal, the property was still positive cash-flowing at the end of the year. 

I felt the overall ease of looking at the properties on their website (technically google docs) and communicating with the team about issues or questions in general made for a very positive experience.  They took care of me from start to finish and I obviously still have communication with them to this day.  Currently, I have secured 3 additional properties.  All are new builds in the Cape Coral area.  One is nearly complete the other have begun their building.  

Happy Investing!

[Eric Winkler]

Good morning James,

I work directly for the builder so I wanted to address your concerns.  Firstly, 4-8 months was never a timeline that was set by the build team.  It takes 6 months on average to build a house once you have permits and we have gone vertical - which wouldn't account for the permitting process at all.  Permits, pre Covid would take 30-60 days - now they take 90-180 days to obtain.  This is AFTER you have completed all the requirements to even obtain a permit.  As I have outlined below, these steps run in series, not concurrently.  It sounds like there may have been miscommunication or unrealistic expectations that were set.  Below is a timeframe of what needs to happen in order to obtain a permit with the City of Cape Coral:

As I stated before, the permitting process typically took 30-60 days (Pre-COVID). Now, due to the pandemic, an influx of demand, and a lack of local resources at the permit reviewer’s office, permits have been taking roughly 90-180 days. The standard overall permitting process timeline is below. Please take into consideration that all time frames are estimated and vary by project. Once we submit the completed permit package over to the local municipality, the wait time for approval is unfortunately out of our hands. To keep our process fair for all our customers, once approved, we will start the construction of your home in the order of project contract date. Please note your start date may be backlogged due to other starts ahead of you.

• Survey (8-10 weeks)

• Request Permit Prints from Design Team (4-6 weeks)

• Site Plan and Septic Design from Design Engineers. (6-8 weeks) Need survey back to start designs as this is site specific.

• Energy Docs (1-2 weeks) Need plans from Design Team to make request.

• Zoning Review by Entity (typical 4-8 weeks) Need completed design package to submit.

• Permitting (8-16 weeks) Need completed design package to submit.
• Approved Septic System Design from Lee Health Department (8-12 Weeks)

If you could provide me your site address we can check directly with the county to see the status of the permit.  Additionally, if you have any questions along the way regarding the process, we have an entire permitting staff and email setup to answer questions and provide updates as well (message me and I will give it to you if you don't have it already).  On a positive note your investment has increased in value significantly over the last 8 or so months - and although frustrating, I believe you will be pleased with the overall results and equity position you find yourself in once the build is completed.  

Again, feel free to reach out with any questions regarding your build - I will be more than happy to address any concerns and/or provide you with an update!

[Peter Davis]

@Eric Winkler

Thanks Eric, that's good detailed information on the permitting process in Cape Coral.

I've sold a number of homes that were built similar to the R2R model where the investors decided to essentially flip them once they're complete and cash in on the hot seller's market rather than rent them out. We're waiting on the Certificate of Occupancy (CO) on one in the Northwest Cape. I followed up with the builder last week and he said the city is actually bringing in people from Charlotte County's permitting department to help with the backlog.  

[Michael Gandy]

Quote from @Parker Thornburg:

Curious if anyone has purchased a turnkey property with Rent to Retirement.  I obviously hear their ads on the BiggerPockets podcast, and the model sounds intriguing.  If anyone has an experience they would be willing to share, I would appreciate it!

Parker,
I've purchased three properties from R2R in the past year.  As with anything, I'd definitely encourage you to do your due diligence and get as comfortable as you can in the process.

If you'd like to chat in more detail, feel free to DM me.  

[Lorene Kohleffel]

I have not purchased through Rent to Retirement, HOWEVER I did purchase a supposedly "turnkey" property from one of their Kansas City suppliers. So a property from one of the same rehabbers you might be buying from if you buy through Rent to Retirement. It was very much a less than great experience. They refuse to answer questions about discrepancies in documents I was given, despite repeated requests. My turnkey middleman (which is what RTR serves as, an intermediary and not the actual rehabber) even intervened and they have ghosted him.

[Scott Lundgren]

Lorene,
We are not sure how to respond to this post. You stated you did not buy through the RTR network, and then went on to mention you had issues with your property. I don't think this should be a reflection on RTR if you did not purchase from our team in this area. I'm sure everyone would appreciate it if you would be specific on exactly who you purchased the home from & who you are encountering issues with for transparency. That is what these forums are for. Otherwise I don't think this post is adding value to the BP community as a whole. If you did not purchase through the RTR network, then this should not be a reflection in any way on RTR. For the record, we have one contractor we work with in the KC market. His name is Andrew Ross, and we have many clients that have had a great experience working with him for years now. RTR is a licensed MO broker and has a very meticulous vetting process we follow for anyone that wants to join our network. We have accepted less than 3% of the contractors/builders/brokers/sellers/property managers that want to join our TK network because they do not meet our standards. A post like this is probably best on its own thread talking about the people/team you actually worked with in KC since it was not RTR.

[Lorene Kohleffel]

Update: I want to clear up any confusion I caused with my last post. I did not purchase my property through RTR, and the issues I encountered had nothing to do with them. The owner of RTR, Zach Lemaster, reached out to offer his expertise and assistance with the issues we were encountering even though this was not one of his properties. Honestly, he didn't have to do that and we really appreciate his willingness to assist. I'm happy to say that we are headed in a better direction with the property after speaking with him and hearing his advice on the situation. It is clear that he cares about investors' success even for those not doing business with his company. That goes a long way to show how he runs his company and team. The next time we are looking to invest in a turnkey rental property, we will highly consider working with his team because he's shown me he stands behind his word. Thank you Zach!