thanks in advance!
Disclosure: Sales and Marketing for Buy Memphis Now
What city/state are you looking for? This is a broad question as there are several markets with many turnkey providers. We are in Memphis TN and there are only a few legit ones to contact: Memphis Invest, Buy Memphis Now and Memphis Turnkey.
Disclosure: Owner of Memphis Buy and Hold
Just an fyi there are more legit turnkey providers than the ones @Curt Davis
stated... This forum is not made to promote individual turnkey companies, I am not sure how long this will last before the BP moderators pull it down.
I hope you are able to get a good list of companies in the meantime because there are a ton of great turnkey providers here on BP and some are not on BP!!
This is a tricky post because someone asks for a list and if anyone who is of that asking list provides the info it then can be considered promoting. This post is a catch 22 as I can not promote or even state my companies name but someone else could.
@Derrick Craig Nothing personal, I have just never heard of your company.
No offense taken at all.. to be honest I have never heard of the company you work for either.. Only companies I ever heard of here in Memphis are Memphis Invest & Memphis Cash Flow..
is Memphis cash flow the Reedy's?
That is Hulets company. Memphis Investment Properties is Reedy's but they are not doing turnkey offerings anymore as they are working for the Hedge fund.
I am always fascinated when I see people on these sites talk about how they have come here for a week to visit several TK providers but some visit us and some dont. It makes me wonder what type of research they are doing before them visit our city.
Vishal I bought my first personal residence in Milpitas CA cira 1976... it was a Shapel home I paid 86k for on Arizona Ave across from Milpitas HIgh... that one home spring boarded me forward and I never looked back.. I sold it within 18 months for 150k.. Not bad for a 19 yo ... don't get sucked into the line that its all about cash flow and appreciation is icing on the cake.. appreciation is the cake and the only way you can really make it in RE unless you have the means to buy 50 to 100 rentals in the cash flow markets.. What happens is you buy 1 or 2 it goes good first year then reality hits you find it way to hard an frustrating when you houses are broke into your air-conditioning units are ripped off your tenants don't pay etc etc... And you stop buying ... But if you go out of state then you need to go all in.. because your not going to really make any money on appreciation in most markets and your not going ot retire on 100 a month positive cash for or 200 a month.. You can do good if as I state you buy 100 of them.. but not just a few.. A few properties out of state can actually cost you a boat load of money.
I asked Mr. Davis about Memphis because I have a client from Austrialia that bought 4 homes .. its been a nightmare.. vacancies thefts.. And then when she went to sell them she would have taken a 30 to 40% loss.. Because the only one's who can sell for top dollar are turn key guys.. And the average investors does not have the benefit of all the marketing money they spend to bring in clients. Use extreme caution when going out of state... look close to home first and foremost. You don't know what you don't know vis a vi out of state
I agree!! Where do they get there info from and what research they are doing before visiting our city baffles me...LOL!! Some visit me and some don't as well.
Turnkey can be a bad word on bp. There are several on bp and about the same amount that get paid as referrals on bp. I hope the promoters disclose relationships or else the information you get is distorted/corrupted. I know the prices are higher than what you would pay just off the mls typically. In the stock world that be a violation to charge more than the markets current quote. In the turnkey world there are no such investor protections.
Just check in on bp when you are close so these pros can help evaluate and you will be fine. I do know one of the Memphis biggies added operations in Houston and that is where I would consider if I was in the TK market today. I recently sold a condo there and my phone is still ringing a month later.
You are asking for recommendations so it depends on your definition of turnkey. If your definition is a company that buys, rehabs and manages their own inventory so they remain responsible for rehab issues and management problems, (which is my definition)then there are only 3 in Memphis I believe..
1. Memphisinvest. Arguably the most expensive but highly professional, great quality rehabs and management and well funded to honor any issues that might come up.
2. memphisturnkey. Alex Craig, smaller company but with a great name in the city
3. midsouthhomebuyers. Terry Kerr. something of an institution in Memphis with a long track record of competency.
There are then a raft of companies that either don;t do their own management or their own rehabs so they are not turnkey but can supply decent homes.
PS: memphiscashflow also has a good reputation not sure if they do their own management though.
All can say is I am in the commercial space so I do not buy the turn key residential stuff.
There are buzzwords you need to seriously watch out for.
The big one is " NEWLY RENOVATED ". Some TK promoters make it sound like you are getting a brand new house or something. In fact what many of them do is slap cheap carpet and paint and change a couple of fixtures and call it new. It's a bunch of BS. What is new is if all the mechanicals, plumbing, electrical, roof has been replaced. The problem is doing some of those repairs would suck out all the TK companies profit or make the property a loser for them. So many look for inexperienced new buyers that might overlook a few things which means a high sales price for them.
It's not only the TK industry as I see it in commercial as well. Sellers are hoping for the newbies who overpay. The experienced investors offer lower of course but the sellers know generally it will close. Just do not take the TK providers word for anything no matter who they are. Fly out and scout the area yourself. Look to see if they have before and after pictures of their rehab. Look to see if proper permits were pulled. Look at all the places they do not want you to inspect to find the expensive repair items that could turn the deal into a dud.
Great cash flow in years one and two can be wiped out at once with a few big ticket repair items.
Some TK companies are good but it's buyer beware out there.
You can try and take the trip as a tax deduction when traveling just get with your tax professional to set up properly.
Great points and so true... ONe of my clients that I fund in Chicago does a really great job.. they take their homes to the studs each and every time... all new plumbing new Hvac new roof new electrical panel and all new wiring Windows usually.. new insulation sheet rock all new cabinets slab granite counters full ceramic tile. instead of 7k rehabs they spend 40 to 70k plus.. really nice product.