Anyone out there have experience with ABC Capital Investments in Philadelphia, PA for turnkey properties?

167 Replies

@Weis Sherdel  

  Well looks like you already made your mind up and bought one.. what can I add to that.

I know many folks who own those and do that.. Heck I owned 350 class B and C properties myself... 50 some in Atlanta  12 in Indy.. 212 in Jackson.. 5 doors in Memphis, 35 in Birmingham. I got bought out of this company that I started in 2010 and it was one happy day I can tell you!.. Plus a nice liquidity event !...  and the balance in Oregon.  Plus the 150 or so I bough and flipped in the last 18 months... So yes I think one can find it and can achieve those numbers.  Really just depends on the home and the area and who is managing it etc.  Where I caution folks is the very low end.. And those that have no experience ... Its much easier to gain experience if you live close to the asset and can be involved with the running of it.. Other than out of state were you have no real control. If you are in a poor area of Indy at 60k and making 9% you may or may not do well over time.. If your in a good area you could do fine.. I just sold a duplex I owned in Kokomo last week for 27k... I think the guy that bought that will do fine. but he lives there and works on it himself etc etc and it will rent for 800 total... I could never get it to perform.. constant problem tenants.. maintenance etc. So I dumped it.

To that End Brie Schmidt and I have created a new website called Turnkey-review.com this site will have most of the turnkey companies in the US on it.. brief description of what they do and it will allow their customers and others to comment on their product and services and experience's.. kind of like a trip advisor.. the beta is listed over in the Market place if you want to check it out.

Hi @Weis Sherdel   the biggest issue you are going to run into is getting a good team.  Milwaukee cashflows very nicely but, like a lot of these markets, you need to know what areas are investor friendly and what ones aren't so get a team in place, learn the local market from someone other then the guy trying to sell a "turnkey" property, and then start your journey.

@Jay Hinrichs  - I appreciate your time and expertise.  I now understand the nuance in your advise.  You're not categorically rejecting buy-and-hold - just cautioning us against dirt cheap property that may look strong on paper but will not perform in the long run.  That's all you had to say, man :-)

@Weis Sherdel  

   that's funny.. but your right... and there has been some good threads on this lately.

@Jay Hinrichs  would you give the address of the duplex you sold in Kokomo. I keep a cloe eye on those sub 40K duplexs in town always wondering if they are good buys or not. I would like to ear more on ow it performed. You can PM me the fo if youwould like.

@Jay Hinrichs - and Brie Schmidt -- Thank you thank you thank you!!!!!

>>> To that End Brie Schmidt and I have created a new website called Turnkey-review.com this site will have most of the turnkey companies in the US on it..

As a recent investor with ABC Capital Investments I was happy to see how this thread played out and to hear from the various investors who were both fresh into their relationship with the company and from the investor who'd been with them a while and owned 5 properties from them (and who was, for whatever reason, completely ignored by the people asking if there was anyone with longer term experience with the company).  Geno and Jay's back and forth exchange ended surprisingly well for an internet forum debate, and that alone should bode well for anyone interested in working with the company.  Funny what you can accomplish by having a bit of face time.

I've got two properties reserved at the moment and both are undergoing the repairs and renovations needed to get them rented.  Looking forward to working with Jay in the long term and from every exchange I've had with him he seems like he's got his act together.

Hi all

I am thinking of investing with ABC.

I would be very happy to hear more on experiences with them. Has anyone been experiencing errors in payments? Late payments? Book keeping problems?

Good experiences are interesting too.

Thanks!

For those trying to check out @Jay Hinrichs ' website (as I did), looks like there was 1 letter missing from the link mentioned.  Should be www.TurnKey-Reviews.com (plural).  I look forward to exploring the site.

Originally posted by @Emily Powell :

I did go to Philly and tour Jay's properties.  The neighborhoods are not ones I would live in, but if his rent estimates are accurate, would be great for cash flow.  I looked at a handful of properties in different areas, none of which I would call "up and coming," but every single property looks identical.  If you've seen one property, you've seen them all.  The renovations all look good, the same paint colors, the same wood floors, the same 5' kitchens (which I imagine is common for turnkey providers).  

I went through a similar tour and had similar thoughts. While I don't know if the locations are "up and coming", there is an appreciation play if the growth of University City extends to those areas in the next 10+ years. 

Although I didn't get to do the tour with Jay (he was in Israel that weekend), I was extremely impressed by the rep and property manager who I met and toured with. Trust is big for me and both of them seemed like the type of people I would like to have manage my purchase, rehab and management. I was blown away by the insight and time they both provided to me. You could tell the company takes customer service seriously (for both the customer and tenant).

I'll continue to keep an eye on the company's properties while also looking into ready-to-rent properties in other parts of the city. I'd prefer to rent in areas I'd be open to living in and dealing with tenants myself in case I need to self-manage in the future. Using ABC rankings, these would probably be A / A+ areas. 

Check out Jay's previous company - Home Cash Direct

@Jack Benimble - a quick google search returns several complaints (seemingly from the same person on different sites).  Would you like to elaborate on your comment?  Did you work with Home Cash Direct?  Do you have any personal experiences you'd like to share?

My personal experience was a positive one although I never completed a deal.  After we parted ways, I heard that some deals went bad and he disolved the company.

Is any of you are serious about absentee real estate investments. I can direct you. I lease about 300 units a year. I've been a realtor for 10 years.

Just as a heads up, I would not trust the posts written by @Jack Benimble .  It's obviously a fake name (Jack be nimble, Jack be quick, like the old nursery rhyme) and as you can see by his post count, the account was created specifically to leave this single cryptic review.  Not something I would equate with a trustworthy source on any forum.

I'd like to revive this thread a bit with my further experiences with ABC.

I've had two properties with ABC for a while now, one for about 9 months and another for about 13 months.  No major problems to report with ABC, the properties themselves appear to be sound and generally well rehabbed.  On my second deal with them, there were a few issues with the building that I insisted be addressed, and they were very accommodating and fixed the issues to MY specifications.  Not theirs, not the bare minimum they could have done, but enough to put my personal sense of caution at ease.  That was a big plus.  One issue on the second property was problematic, and we couldn't realistically address it before closing (a small soft spot in one floor, nothing structural just a little bubble under the faux-hardwood flooring where the floor had shifted a bit over the years).  Jay offered to rip up the floors and fix it right there and then, inconveniencing the tenant to make me happy, but in the end he actually wired me a sizeable chunk of cash so that I could cover the cost of replacing and repairing the floor after the tenant departed.  I was hella impressed by the transparency and Jay's willingness to meet me either halfway or all the way.  Huge points.

Now, negative points.  There have been some growing pains in the company.  My second property experienced a delay due to a backlog of rehabs that they had to complete.  Thankfully I had invested with them through the Maverick Investor Group, so my terms were a little different than what I see for their regular customers and I didn't lose any money as a result.  It feels like they made a huge surge last year, and they certainly listed a ton of properties with Maverick in a very short period, so it's likely they just bit off more than they could chew at the time but they should be back at full efficiency soon, if not already.  Second, their property manager is a little slow on communication, and I've heard the same complaint from a couple people I've talked to about ABC.  Communication and water bills are two small headaches that you're going to have to deal with, but if you can come to an understanding with Pete (ABC's PM) he's actually a very reasonable guy and you can get the little wrinkles ironed out.

In both cases, my negative experiences amounted to little more than small hassles, with very little dollar-value impact on the ownership experience, and both problems were sorted out in the end.  Al in all, I've found ABC to be a trustworthy, transparent, and entirely reasonable company with whom to work and I'm looking forward to future deals with them.  If you're brand new, be ready to tackle a few early challenges, but I wholeheartedly recommend ABC Capital Investments.

Thanks for sharing your experience, @Alex SImon .  I'm thrilled to hear you've had a positive experience.  Thanks for resurrecting the thread to add a great review.  

Thanks for the props @Emily Powell , I'll probably resurrect the thread again sometime next year with more long-term observations.

I live just over an hour from Philly, thank you all for putting up some really thorough posts on this thread.

Hi . Trying to revive this thread as the wife and I are looking to make a cash-then-refinance investment with ABC in Baltimore through Maverick. So far my diligence and gut tells me that investing with ABC in Baltimore will be a great addition to our portfolio. I was especially impressed after attending the Webinar hosted by Maverick where @Jay Walsh delivered the material effectively and came across as someone with solid experience and expertise.

Will appreciate and love to hear feedback from the BP community  (especially @Alex SImon ) about their recent experiences with ABC Capital - if someone in the BP community has already invested with ABC in Baltimore and can share their experiences, that will be a bonus! 

Thank you.

@Raj Gadre - Did you decide to move forward with ABC investments? I've been in talk with them and Maverick Investor Group. Going to speak with them a little more and I may be moving forward with a property in Baltimore as well. 

I'm adding on to this thread to see if any BP users have used ABC Capital Investments recently in the Baltimore market? Planning a trip up there at the end of June to see these areas around John's Hopkins and West Baltimore. This would be my first Turnkey investment utilizing the BRRR strategy but am just beginning my due diligence. If there is anyone out there that has any feedback on the Baltimore market or on ABC Capital Investments it would be greatly appreciated.

I bought a Buy-renovate-rent-refinance property in April from ABC Capital. I will be posting an in depth summary of my experience soon, maybe tomorrow. 

It's honestly been a nightmare, and I've been waiting to post my experience to give them time to correct it (I made a similar post about another turnkey company in the past), but at this point it looks like they can't be bothered to return my phone calls or give me a straight answer via email, so I will be posting soon.

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