"Turn Key Cashflow Rental" websites

Irvine, CA · Member since 2010 · 28 posts · 12 votes

Has anyone used this site?

http://www.investornation.com/

It claims to sell "Turn Key Cashflowing Rentals." The only markets available for cashflow seem to be Memphis and Atlanta on their site. I imagine they are buying Bulk REOs, rehabbing them, and selling them at mark up for profit while supposedly still maintaining cashflow numbers.

However, what I'd like to know is if anyone here has used them and do their properties really stack up? Also, how does the whole process work? Their website is very general and it seems they want you to call, presumably so they can get a sales person on you.

As an additional note, a new user on here posted this website http://masonhill.com/, claiming the same kind of turn key rentals. The programs sound very similar in their operations.

0 Reply

48 views

Most Popular Reply

Todd Brittingham

Real Estate Investor · Walled Lake, MI · Member since 2010 · 121 posts · 66 votes

15y

Victor,

As with anything else, you need to do you due dilligence before investing with any of these companies. If you are going to be an out of state investor that is fine, but if you're willing to invest in a property for thousands of dollars, it's probably worth the time and effort spent over a weekend to visit the area you are going to invest in. This will give you a chance to meet and interview various companies you might work with, and also get a very good perspective of the areas you will be investing in. There are a number of Turnkey sites popping up, and they are a good way to go if you find the right team.

1 Reply

See this reply in the discussion

40 Replies

Jump to latestLatest

Sort by

Ben Kevan
Investor · CA · Member since 2010 · 150 posts · 40 votes
15y
I just approved a tenant that has some current credit issues, but has never had a late rental payment (according to previous landlord and he's been there for 3 years).

Their reason for moving was to lower their rent to get caught up after his wife lost her job a few months ago.

Their rent is going down by $200 / month.

I was quite nervous about this, but after talking to them in person (at my request to my PM), they seemed like great people that ran into some financial trouble. However, they noted the most important thing to them is a good roof over their head, and that they've never been late on paying for that.
0 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
15y
Ben you have to go a second generation landlord back.The first one you talked to is trying to get rid of them.

Talk is cheap.I would want a large deposit to mitigate risk.

On the investor nation website I have never done business with them.

However it took me under 1 minute to find a page of their sold's with numbers playing up a 1 in 100 outcome.

Their words below in between the lines.
_________________________________________
*Assumes 10% for Property Management
*5% for Vacancy
*5% for Repairs
_________________________________________

So only 20% says it all.They are selling a pipe dream plain and simple.

Show a highly un-probable outcome to entice them in.
Podcast Guest on Show #47
NNN Invest53 Reviews
Website View Page
0 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
15y
Phil, you sure can pitch a good game from your keyboard and trash Memphis but not give any real info. I did work for that company in 2009 and there is a reason I have moved on from them. I dont like to hear about past clients having a problem, especially if I worked with them. I would like to reach out to them and see if there is anything I could to to help them if their current situation is not well. There are dead beat tenants but there are also some good ones as well. The management company recommended then was doing a good job and sure, they are going to have some trouble at times like ALL management companies do. Phil, how many homes is Memphis do you own or have purchased to resell? If the answer is none then you really dont have any room to talk about Memphis.
Curt Davis - KAIZEN Realty538 Reviews
Website View Page
0 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Curt said "When looking at a potential application your not really looking at credit score but more looking at rental history and income verification, also how many times have they moved in the last 5 years." I agree with this 100%.

For people investing in "foreign" markets ('remote' or 'distant' may be better words), I don't understand why, if you think you are having PM issues, you aren't setting tenant screening criteria upfront and ultimately approving the tenants before the lease is signed? You are acting like your PM controls you and your property. IMO "Turn key Rentals" doesn't exempt you from making decisions and setting expectation/processes for your business. If the tenant is already in place, the PM company will have all the current tenant history and their application and screening for you to consider before making property decisions.
0 Reply
Phillip Gainey
MI · Member since 2011 · 228 posts · 75 votes
15y

You didn't read my post. I said I wouldn't rent to ANYONE who has been taken to eviction court or had to be taken to court for not paying a debt.

Three separate PMs in Memphis have told me that with that criterea, you'll have a hard time getting my properties filled. That most applicants have at least one such judgement against them in Memphis. They didn't say CERTAIN AREAS of Memphis, they were talking about memphis tenants in general,. Solution, find a better market to invest in. I've owned 5 propeties and had 10 tenants in Memphis. Only two have been what I'd consider "normal", or people I'd have anything to do with otherwise.

So why would three separate PMs (including the one I'm working with) tell me this if it weren't true? I've rented to middle class tenants in 4 other states, never had any where near the problem I've had in memphis. Mostly in the suburbs or areas where the underlying demographic mirrored the national average. Places where there are plenty of rental applicants with decent rental histories. Why rent to someone who has been evicted before, if you don't have to? Apparently, in Memphis, that is a challenge.

PG
0 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
I read your posts. True or False. You approved the tenants for YOUR PROPERTY. Or did you delegate this to the PM.
0 Reply
Phillip Gainey
MI · Member since 2011 · 228 posts · 75 votes
15y

Delegated. Get your point. At the very least, get the name of the applicant they want to rent to, do a basic search of county rental court docket.

In the case mentioned above, however, it was the wife who had the numerous evictions. Husband had a clean record (not anymore). The wife wasn't mentioned or screened. They lied and snuck her in the side door of the movie theater after the husband bought his ticket and took his seat, so to speak. The applicants in places like Memphis, know all the tricks, apparently. They can even fool a "certified, turkey package approved local property manager".

Three months, and $3600 rent revenue forgone, later, you gotta move on to the next PM and try again. Or, find a better market, where people like the above actually stick out and are easier to spot.

"Oh the pain!" Dr. Smith "Lost in Space", 1967.
0 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Agreed. My hat's off to you and others who invest outside your local area. It seems like a tough business. Hardly passive for me since I feel like I need to be involved in all decisions. In this sense, it is not as 'turn key' as BUY 100 XOM @MARKET.
0 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Regarding "... however, it was the wife who had the numerous evictions. Husband had a clean record (not anymore)." I have long thought, having experienced this many times from professional tenants, that this activity amounted to fraud. It's proving that has been the problem... but in a husband/wife team, it would be a little easier to prove. I'd like to see statutory change to make this abuse a crime. Pipe dream in my state.
0 Reply
Phillip Gainey
MI · Member since 2011 · 228 posts · 75 votes
15y
Originally posted by Chris Martin:
Agreed. My hat's off to you and others who invest outside your local area. It seems like a tough business. Hardly passive for me since I feel like I need to be involved in all decisions. In this sense, it is not as 'turn key' as BUY 100 XOM @MARKET.

I most don't do OOA rental anymore. I mostly fund a select few local investors who buy the properties. Or, buy discounted notes and let someone else play "Judge Judy" and deal with the idiots! The investor makes money, I make money.

0 Reply
Phillip Gainey
MI · Member since 2011 · 228 posts · 75 votes
15y
The Investor Nation Memphis nightmare is continuing.

Turns out the property which was supposedly had inspected and renovated by Investor Nation in 2009, needs a new roof. $4500 or so, ching-ching! Turns out there was a leak in the roof the PM they recommended didn't inform the owner, and there was a pissing contest going on between the pm and tenants (now evicted).

The new pm hired someone to look at the roof. The guy said the shingles were cracking and breaking apart and the leak couldn't be fixed without replacing the roof.

Oh, also, tenants backed their car into the garage and caused damage. PM didn't tell owner about that either.

This is the kind of crap that happens when you buy from "Turkey" packages from out of state.

Owner had thrown in the towel and is selling.

PG
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.