Any one used Martel turnkey before?
Rental Property Investor · Green Bay, WI · Member since 2018 · 36 posts · 24 votes
Any one used Martel turnkey before?
Most Popular Reply
Attorney · Irvine, CA · Member since 2018 · 19 posts · 22 votes
7yI just had my parents purchase a single family home from Martel Turnkey in Birmingham. The process was smooth and I am very happy with the property manager we have managing the property. I had met Antoine Martel at an LA Meetup. I asked him if I could take him to lunch to pick his brain. I gave him some ideas and he gave me some for what I am trying to achieve in the real estate arena. I wanted to break bread with the guy before I did any business with him. I am a criminal defense attorney in Southern California so I needed to cross examine him in person. I explained that my parents are on a fixed income but looking to generate cash flow to help them with costs for their assisted living. He helped me in suggesting a property, got me a better rate for insurance for the property and found me a lender in St. Louis who I now use on all my residential loans. In fact, today I just wired money for a duplex I am purchasing on my own using Antoine's bank that he refers to his turnkey buyers. He has been straight with me from the start and I would trust him to do another turnkey rental for my parents once we build enough reserves and pay down some other debt. I hope that whomever you chose for your turnkey property you get the same satisfaction that we have had with Martel Turnkey.
54 Replies
- Member since 2019 · 4 posts · 4 votes5y
I have bought three properties with them over the past 2.5 years and it has been a positive experience. As a newbie investor, I was quite unsure and nervous about what I was doing but they were very helpful and held my hand through the process.
I'm very happy with my decision to invest through a turnkey company because without this experience, I might never have started investing at all for the process was too daunting and complicated to handle on my own. Antoine and Angelica were very helpful with my questions and the best part is that they always got back to me within a few hours.I did not see any of the properties in person but I did hire property inspectors who's reports were very thorough. Overall the houses were in very good condition. There were a few issues here and there but never any big ticket items. Martel Turnkey was always very flexible and fixed all of the requested items. One important thing to mention is that the homes always appraised higher than our purchase price which is obviously ideal for investing. Two of the houses were occupied before closing and one had a vacancy for about a month after closing but Martel has agreed to pay for the principal and interest for that period and did so. The cashflow they advertised has been very accurate. No issues so far with the property managers. They've been professional and have streamlined systems in place. I'm sure there will be fixes and expenses down the line but I don't expect the houses to be perfect, it's a normal part of real estate investing.
Flipping homes does not appeal to me... for now. I simply don't have the time or experience to hunt for deals, manage renovations and sell or screen tenants. That's why all in all it has been a great experience working with Martel. I would recommend Martel Turnkey to any new investors looking to get into real estate investing.
- Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes5y
@Ben Greenlee I purchased my turnkey last year as well with them and my experience has been the same. Would definitely recommend them for turnkeys in Memphis or Cleveland.
Also @Jay Hinrichs I am the "kiss of death" post lol. People need to chill out on BP sometimes. I just posted my experience and people got offended it seemed
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Aj Parikh:
@Ben Greenlee I purchased my turnkey last year as well with them and my experience has been the same. Would definitely recommend them for turnkeys in Memphis or Cleveland.
Also @Jay Hinrichs I am the "kiss of death" post lol. People need to chill out on BP sometimes. I just posted my experience and people got offended it seemed
I dont think offended is the right word for it.. just mentioning it.. many times on BP be it turn key or any other vendor selling ( especially guru expensive training courses) you would be amazed at how many people with less than 5 posts all of a sudden pop on with glowing testimonials.. buying rentals in these markets is fine.. and turn key is just a company that instead of rehabbing and selling for Owner occ they target investors. they want to make a profit like any of us do.. I build new construction and I certianly want to make a profit If I built new construction to sell to landlords I would want to make a profit.. the risk in mid west is where the property is .. and well thats were there can be some serious issues.. but if buyers just buy properties in good areas of any town with good schools in an area of the Median home price for a given city/market they generally do just fine.. when they buy for a lot less than the median then they are buying into rental dominated neighborhoods which are usually priced for risk/reward..
- Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes5y
Originally posted by @Jay Hinrichs:
Originally posted by @Ben Greenlee:
First time home buyer. I purchased a property from Martel Turnkey last year in Cleveland. Hadn't even seen a picture of the house, just trusted the process. The reno came out way better than my expectation and appraised 7k above what I paid. Got a great rate from their lender and insurance was quick and easy. Remax, the PM they set me up with, has been in constant contact with me and they are awesome. The place was rented above estimate instantly. I've literally done nothing and I'm making 300+ cashflow a month. Already planning to get my 2nd in August
no offense but on BP one post that is glowing like this is the kiss of death for the turn key company.. screams of a schill
plus having owned personally over 300 rentals in the mid west markets I know first hand its not all perfect.. can be but also can be nighmare choose carfully.
I'm glad I'm not the only one who's noticed all the schills that seemed to have popped up on here more recently! I wonder if they know how obvious they are...
- Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes4y
Originally posted by @James Wise:
Originally posted by @Joshua Paul:
I'm looking to start buying turnkey rentals in the next few months and I came across Martel turnkey. They seem legit, but I am hoping to get feedback from others who have purchased properties from them in the past. What was your experience? Pros and cons of working with them?
Thanks everyone!
My understanding is that he renovates properties then sells them to investors. He isn't a broker or PM so the management will be done by whichever local 3rd party PM you choose after the sale. So what you'd want to do is simply vet the product you are buying. A house is a house. Get an inspection & appraisal on the property. Ensure that the rental estimate provided is accurate to what can be expected in the market & you'll be just fine.
I just wanted to correct this information that is out there.
We don't just work with random PM companies in the cities that we invest in. Every city that we invest in has a dedicated PM company that we work with and we have been working with many of them for 5+ years now. We introduce our clients to that PM company on the ground once they put a house of ours under contract.
We also rent all the houses that we sell before they are sold to our clients. We do not sell our houses vacant, we sell them with tenants in them.
- Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes4y
Originally posted by @Ali Boone:
Originally posted by @Jay Hinrichs:
Originally posted by @Ben Greenlee:
First time home buyer. I purchased a property from Martel Turnkey last year in Cleveland. Hadn't even seen a picture of the house, just trusted the process. The reno came out way better than my expectation and appraised 7k above what I paid. Got a great rate from their lender and insurance was quick and easy. Remax, the PM they set me up with, has been in constant contact with me and they are awesome. The place was rented above estimate instantly. I've literally done nothing and I'm making 300+ cashflow a month. Already planning to get my 2nd in August
no offense but on BP one post that is glowing like this is the kiss of death for the turn key company.. screams of a schill
plus having owned personally over 300 rentals in the mid west markets I know first hand its not all perfect.. can be but also can be nighmare choose carfully.
I'm glad I'm not the only one who's noticed all the schills that seemed to have popped up on here more recently! I wonder if they know how obvious they are...
I am sorry that our clients went online and posted positive feedback on this forum.
Do you work at BiggerPockets? Are you a forum moderator here?
- Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes4y
Originally posted by @Aj Parikh:
@Ben Greenlee I purchased my turnkey last year as well with them and my experience has been the same. Would definitely recommend them for turnkeys in Memphis or Cleveland.
Also @Jay Hinrichs I am the "kiss of death" post lol. People need to chill out on BP sometimes. I just posted my experience and people got offended it seemed
Crazy how people can't even leave positive reviews online without someone coming and trying to bash it and call it a scam. They must be so bored this is what they do with their free time.
Thank you for your business AJ and Ben.
- Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes4y
Originally posted by @Jay Hinrichs:
Originally posted by @Ben Greenlee:
First time home buyer. I purchased a property from Martel Turnkey last year in Cleveland. Hadn't even seen a picture of the house, just trusted the process. The reno came out way better than my expectation and appraised 7k above what I paid. Got a great rate from their lender and insurance was quick and easy. Remax, the PM they set me up with, has been in constant contact with me and they are awesome. The place was rented above estimate instantly. I've literally done nothing and I'm making 300+ cashflow a month. Already planning to get my 2nd in August
no offense but on BP one post that is glowing like this is the kiss of death for the turn key company.. screams of a schill
plus having owned personally over 300 rentals in the mid west markets I know first hand its not all perfect.. can be but also can be nighmare choose carfully.
Sorry for the positive review Jay.
He didn't say it was all perfect, he only owned the house for 12 months. On a turnkey rental property a lot of things go the right way in the first year.
- 4yVladimir TelemaquePro MemberMember since 2021 · 2 posts · 0 votes
Quote from @Jeremy Hoffing:
Originally posted by @Antoine Martel:
Originally posted by @Jeremy Hoffing:
Hi Joshua,
I purchased two properties from Martel Turnkey via Antoine Martel and it has been an absolute nightmare of an investment. Antoine lied about the condition of the properties and rehab work, and set me up with what has got to be one of the worst property management companies out there, despite his reassurance that they were a great company to work with.
Regarding the condition of the properties, I had to shell out an extra $8k in repairs shortly after acquiring. On one of the houses, Antoine told me the roof was in good condition and had been patched to prevent any leaks, despite my concerns from a home inspection. I went along with it, which was a mistake. Shortly after, my home insurance company dropped coverage due to the condition of the roof and then leaks starting happening when rain came.
The worst part of all of this has been the property management company he set me up with - Trek Property Management. They have ONE employee managing over 300 properties. Average response time was 8-10 days for any issue. I tried getting in contact with the owner of the prop co, Jeffrey Smith, for over a year to express my concerns. I still have yet to receive a call back. One of my tenants had to be evicted for not paying rent and it took them 8 months to finally remove them. These were tenants that were put in place by Antoine and the property management co had never had a credit or background check done. Another shady detail Antoine forgot to mention. As you can see, an absolutely shambolic prop co. Antoine did not disclose any of this to me when we were setting up the contract.
I have another friend who bought a property from Antoine and has had a similar nightmare experience. A lot of this is my fault for blindly trusting Martel and not doing my own research into good property management companies. I was a new investor into out of state rentals and did not know what I was doing. I've learned a lot from the experience, and one lesson is to stay far away from Martel Turnkey.This is completely false.
This is not false, and I have no other reason or agenda to make this statement and I have documentation to prove it. It's my duty to warn others of your shady business practices. That being said, 70% of my problems were due to the property management company, but they came at your recommendation which speaks volumes about who you choose to do business with. The other 30% is related to your dishonesty, false assurances, and shortcuts on your rehab work.
I have a friend who has had the same exact experience as me, and we'd be more than willing to share more about our experiences with anyone interested.I'm very interested to learn more about these issues.
- Member since 2022 · 4 posts · 0 votes4y
Quote from @Michael Glaspie:
I'll be following this thread to hear more. I am not sure about Martel. I have used Easy Street Properties. I have heard great things about Memphis Invest. I can give you my overall pro and cons from my point of view.
Turnkey Pro:
Very smooth transactions
A little effort upfront and then mailbox checks after
Turnkey Cons:
Typically will pay above market value
cashflow is tight if financed
Overall I believe that if you want to make a simpler investment, turnkey is a good choice. However, you lose a lot of equity potential and cash flow when using that type of investment model. Either way, if using a turnkey company go for one with a solid track record. I have been looking at some of Martel Turnkey properties too. They look good so Im curious to hear some of the feed back.
With Easy Street Properties, when you bought the property, did you go to see it and hire your own inspector?
The reason, I ask is, because the Martel rep was not supportive of me flying to see something I wan to buy saying" there are people living in the house"
- Member since 2022 · 4 posts · 0 votes4y
Quote from @Vladimir Telemaque:
Quote from @Jeremy Hoffing:
Originally posted by @Antoine Martel:
Originally posted by @Jeremy Hoffing:
Hi Joshua,
I purchased two properties from Martel Turnkey via Antoine Martel and it has been an absolute nightmare of an investment. Antoine lied about the condition of the properties and rehab work, and set me up with what has got to be one of the worst property management companies out there, despite his reassurance that they were a great company to work with.
Regarding the condition of the properties, I had to shell out an extra $8k in repairs shortly after acquiring. On one of the houses, Antoine told me the roof was in good condition and had been patched to prevent any leaks, despite my concerns from a home inspection. I went along with it, which was a mistake. Shortly after, my home insurance company dropped coverage due to the condition of the roof and then leaks starting happening when rain came.
The worst part of all of this has been the property management company he set me up with - Trek Property Management. They have ONE employee managing over 300 properties. Average response time was 8-10 days for any issue. I tried getting in contact with the owner of the prop co, Jeffrey Smith, for over a year to express my concerns. I still have yet to receive a call back. One of my tenants had to be evicted for not paying rent and it took them 8 months to finally remove them. These were tenants that were put in place by Antoine and the property management co had never had a credit or background check done. Another shady detail Antoine forgot to mention. As you can see, an absolutely shambolic prop co. Antoine did not disclose any of this to me when we were setting up the contract.
I have another friend who bought a property from Antoine and has had a similar nightmare experience. A lot of this is my fault for blindly trusting Martel and not doing my own research into good property management companies. I was a new investor into out of state rentals and did not know what I was doing. I've learned a lot from the experience, and one lesson is to stay far away from Martel Turnkey.This is completely false.
This is not false, and I have no other reason or agenda to make this statement and I have documentation to prove it. It's my duty to warn others of your shady business practices. That being said, 70% of my problems were due to the property management company, but they came at your recommendation which speaks volumes about who you choose to do business with. The other 30% is related to your dishonesty, false assurances, and shortcuts on your rehab work.
I have a friend who has had the same exact experience as me, and we'd be more than willing to share more about our experiences with anyone interested.I'm very interested to learn more about these issues.
Yep me too: I have been talking to them.
- Member since 2022 · 4 posts · 0 votes4y
Quote from @Account Closed:
I have bought three properties with them over the past 2.5 years and it has been a positive experience. As a newbie investor, I was quite unsure and nervous about what I was doing but they were very helpful and held my hand through the process.
I'm very happy with my decision to invest through a turnkey company because without this experience, I might never have started investing at all for the process was too daunting and complicated to handle on my own. Antoine and Angelica were very helpful with my questions and the best part is that they always got back to me within a few hours.I did not see any of the properties in person but I did hire property inspectors who's reports were very thorough. Overall the houses were in very good condition. There were a few issues here and there but never any big ticket items. Martel Turnkey was always very flexible and fixed all of the requested items. One important thing to mention is that the homes always appraised higher than our purchase price which is obviously ideal for investing. Two of the houses were occupied before closing and one had a vacancy for about a month after closing but Martel has agreed to pay for the principal and interest for that period and did so. The cashflow they advertised has been very accurate. No issues so far with the property managers. They've been professional and have streamlined systems in place. I'm sure there will be fixes and expenses down the line but I don't expect the houses to be perfect, it's a normal part of real estate investing.
Flipping homes does not appeal to me... for now. I simply don't have the time or experience to hunt for deals, manage renovations and sell or screen tenants. That's why all in all it has been a great experience working with Martel. I would recommend Martel Turnkey to any new investors looking to get into real estate investing.
Hi Hal - did you personally go to see the properties" and/or hire your own inspector?
- Member since 2022 · 4 posts · 0 votes4yDo they not provide receipt of work done like new roofs and kitchens?
Quote from @Jeremy Hoffing:
Hi Joshua,
I purchased two properties from Martel Turnkey via Antoine Martel and it has been an absolute nightmare of an investment. Antoine lied about the condition of the properties and rehab work, and set me up with what has got to be one of the worst property management companies out there, despite his reassurance that they were a great company to work with.
Regarding the condition of the properties, I had to shell out an extra $8k in repairs shortly after acquiring. On one of the houses, Antoine told me the roof was in good condition and had been patched to prevent any leaks, despite my concerns from a home inspection. I went along with it, which was a mistake. Shortly after, my home insurance company dropped coverage due to the condition of the roof and then leaks starting happening when rain came.
The worst part of all of this has been the property management company he set me up with - Trek Property Management. They have ONE employee managing over 300 properties. Average response time was 8-10 days for any issue. I tried getting in contact with the owner of the prop co, Jeffrey Smith, for over a year to express my concerns. I still have yet to receive a call back. One of my tenants had to be evicted for not paying rent and it took them 8 months to finally remove them. These were tenants that were put in place by Antoine and the property management co had never had a credit or background check done. Another shady detail Antoine forgot to mention. As you can see, an absolutely shambolic prop co. Antoine did not disclose any of this to me when we were setting up the contract.
I have another friend who bought a property from Antoine and has had a similar nightmare experience. A lot of this is my fault for blindly trusting Martel and not doing my own research into good property management companies. I was a new investor into out of state rentals and did not know what I was doing. I've learned a lot from the experience, and one lesson is to stay far away from Martel Turnkey.
and did you not go look at the property? - Real Estate Consultant · Fayetteville, NC · Member since 2017 · 151 posts · 144 votes4y
Quote from @Casey Kassem:
Quote from @Michael Glaspie:
I'll be following this thread to hear more. I am not sure about Martel. I have used Easy Street Properties. I have heard great things about Memphis Invest. I can give you my overall pro and cons from my point of view.
Turnkey Pro:
Very smooth transactions
A little effort upfront and then mailbox checks after
Turnkey Cons:
Typically will pay above market value
cashflow is tight if financed
Overall I believe that if you want to make a simpler investment, turnkey is a good choice. However, you lose a lot of equity potential and cash flow when using that type of investment model. Either way, if using a turnkey company go for one with a solid track record. I have been looking at some of Martel Turnkey properties too. They look good so Im curious to hear some of the feed back.
With Easy Street Properties, when you bought the property, did you go to see it and hire your own inspector?
The reason, I ask is, because the Martel rep was not supportive of me flying to see something I wan to buy saying" there are people living in the house"
Easy Street ended up burning me in the long run. I have bought more turnkeys since then and I would recommend going to see the properties. Easy Street didn't show me video walkthroughs, only photos. Problem was, they never did the renovations and continued to use the photos from only who knows when. I would avoid turnkey companies who cant give direct answers, won't allow you to visually inspect properties personally, won't allow for a 3rd party inspector to come in, and those who are slow to respond. As I mentioned, there are some solid companies out there, you just have to be careful.
- Member since 2022 · 12 posts · 12 votes3y
Steer Clear - I got a great property, but man has this not gone smoothly. First rental, but was hoping turnkey meant turnkey...
- Martel and Zest (Property Mananger / Rehab) do not communicate smoothly and go back and forth over who is responsible for what
- Zest provides an odd insurance option that is not compatible with escrow (had to go find my own)
- The title company used by Martel does not have the capacity to transfer the property to an LLC
- Zest cannot seem to keep straight what post purchases charges Martel is still responsible for and what are mine
- It's been 3 months and still no cashflow because of the accounting issues above.
Would not recommend Martel or Zest - currently looking at changing PMs. Antoine will probably comment something about how I am wrong here - I'd suggest purchasing elsewhere and not dealing with these pains like I did. - Member since 2022 · 12 posts · 12 votes3y
Antoine you are in many emails, mostly regarding the inspection and issues as a result of it. At closing I tried to meet with you, but you declined.
- 3yTimothy MooreBusiness MemberReal Estate Broker · Farmington Hills, MI · Member since 2019 · 44 posts · 16 votes
Our team at Zest PM has been working with Martel Turnkey as a PM in the Detroit market for a little over a year now and we've had a good experience with their team. We did work briefly for another turnkey company, which I'd prefer not to name (they had good intentions), and that nearly turned us away from that type of work. As a broker, I've come across many other turnkey companies that our clients have bought from and the biggest differentiator I've seen is in work quality and expectations. I've seen this with flippers too. Many I've seen cared more about the profits than about the long term product and success of their buyers (which was strange considering many of them offer warranties).
My experience with Martel has been the opposite. Yes they need to make money like any other turnkey company, but when we find a new issue during a renovation, every time they fix it. In most scenarios where there is a short term repair vs. long term repair (roof patch vs replacement), they will do the long term improvement if that is what's needed. Even on the purchase side with realtors, they often pass on any purchase that won't have enough budget to do a quality renovation. I can't speak to all of their processes and no team is perfect, including my own, but we've continued to do business with them because it's clear to us that they care about their clients.
Like any other investment, do your due diligence and know that repairs and tenant issues will come up even on a new build.
@Jay Hinrichs I am curious what your concerns are about the mid west? I am most familiar with the mid west markets and admittedly not very experienced in other markets but from the other investors I work with and talk to, most other markets in the US have good and rough areas just like any of the markets I invest in.
@Thomas Harari I do appreciate the feedback about your purchase transition but I thought Michael and the team was resolving those issues for you. One of the processes we've been working to improve is the billing transition of final repair items on the purchases. It is common for vendors to invoice us 2-4 weeks after work and then we issue payment in roughly 2 weeks turnaround so most of our bills don't process through to owner statements for 30-60 days. Our accounting team has improved over the last 6 months at catching these but it is not a perfect system yet and occasionally a warranty item comes up, which we have to verify with the contractor or Martel team.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes3y
Quote from @Joshua Paul:
I'm looking to start buying turnkey rentals in the next few months and I came across Martel turnkey. They seem legit, but I am hoping to get feedback from others who have purchased properties from them in the past. What was your experience? Pros and cons of working with them?
Thanks everyone!
Biggest thing you can do when you are buying a turnkey deal is get an appraisal. If you buy the house at the right price, over the long haul, it's pretty tough to lose. Tenants can go good and then go bad, property managers can be swapped over the years, but if it's a solid investment, it's a solid investment.
- Member since 2023 · 1 post · 0 votes3y
Just as an FYI.....there are people in this forum who have been posting who work for the company and/or subsidiaries for the company (without disclosing). A quick google search will let you in on that.
Always recommend to do your research before investing your money with a new company. And remember - honesty (not hostility)( is the best policy. If you don't feel it - find someone else to work with.
- Member since 2022 · 12 posts · 12 votes3y
Here's the full report - stay away from these guys!
Home Inspection - Home inspector found some typical repairs, but the furnace was not working and the thermostat was hanging off the wall. This property was supposed to come with a new furnace as part of rehab. I got them to add the furnace before closing.
Title Company - The title company Martel used in Detroit did not have the capability to change this from my name to my LLC post purchase. You guys know more about how this works than I do, but lots of calling, emailing, my contact at the title company got fired, etc, and someone high up eventually learned about my issue and got this swapped to my LLC.
Accounting Issues - Rent is due on the 1st, my disbursement comes on the 15th. 3 months so far I have had large charges billed to me and no disbursement that were meant for Martel and then had to do my own accounting to tell them what I was owed. Some of these charges are the bills from the rehab itself, $2000+. I also have other charges from beforehand like yard cleanup, lawn mowings, etc that are due to the tenant. Starting 2 months ago, someone from the office and I go line by line before the disbursement. In December I had to start calling and emailing every day or so, and eventually started calling the CEO of Zest (Tim Moore) on his cell to get my disbursement in time to pay my mortgage. I did not get this until the last few days of the month.
Zest is Oblivious - Between Tim Moore (CEO), Susannah Warren (Head of Property Management), and others, they cannot seem to see why I am upset or fix anything with any urgency. I have asked at each meeting what sort of changes will be made to make sure my next disbursement is accurate and cannot get an answer.
Recent Furnace Issue - On Jan 24 I got this email from Susannah:
Hi Thomas,I hope this email finds you well and that you're enjoying the weekend.The resident in 5567 Beaconsfield is experiencing an uncomfortable heating situation. She has reported that it is very cold in the house unless the furnace is running all the time, which in turn is creating a high utility bill.Please review the attached information from the HVAC company we sent in regard to her maintenance request:" Our report,
Tenant does currently have heat but has to run her furnace every minute of the day at 78 degrees just for it to reach 74 on the main floor. The upstairs is probably in the low 60s. Current furnace is wayyyyy under sized for this house. This furnace is only putting out 54,000 btu of heat and that is not even considering the heat loss which is probably around 20 or 30 percent due to windows, over sized ducts and other factors. This house is probably around 1500sqft with full basement and upstairs. There should be a 80,000 btu furnace in there not a 60. Recommend bid to replace furnace with 80%80k furnace. We will need a custom piece of metal made. (14x20-17x20). Let us know how you would like us to proceed here. This furnace was manufactured in 2022."
Keep in mind this is the furnace that was selected, paid for, and installed by Zest/Martel as part of my Turnkey purchase. We have now reverted to the idea that this is their issue, not something where I just pay and upgrade the furnace. The install company was brought back out and determined that things were not setup correctly, adjusted some things and we believe the furnace works now. I have been billed for the furnace service calls (which I am fighting now).
No Rent Paid - at which point these heat issues began, the tenant stopped paying rent. They have not paid on January 1 or February 1.
Current Cashflow - outside of the fact that I have not yet been paid any rent in 2023 yet, I have been averaging about -$300 in cashflow because of continual repairs (prior to rent stoppage). Sewer drain issues, various faucets, recaulking of the bathtub, etc. I wonder that the tenant is just really picky and Zest isn't smart enough to tell them they don't get all of these fixes, just bills me.
Bigger Pockets - I posted in this thread 4 months ago and got a pretty quick response from Antoine Martel saying "I have not been copied on any of these emails". I have since copied him on every email, every issue, and he does not respond except to say "Martel won't be covering this". For some reason he deleted that comment and Tim sent a big post. https://www.biggerpockets.com/forums/92/topics/711899-any-one-used-martel-turnkey-before?page=2
Anyways I am losing money and basically wake up every other day and figure out who I have to call or email to get things resolved. If I could return the house I would. As of a week ago Tim and Antoine and asked for a joint meeting with the 3 of us. Antoine as usual has not responded, Tim said he could make time but a few more emails over the week and there is no meeting. We are 7 days out from when rent is due, and as far as I know it will be month 3 of no rent paid. This morning I tried to get through the phone menu at Zest any way possible - found only voicemails or disconnected numbers with no voicemail (including the emergency repair line).I'm sure Martel and Zest will comment here otherwise - DM me and I'm more than happy to provide email screenshots
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Thomas Harari we know bath Martel and Zest well and overall, they are both good companies with good people.
So, then why are you having issues? Probably due to your expectations not being set/updated and lack/miscommunication between Martel and Zest. Everyone is busy, so trying to coordinate meetings can be challenging.
As others have stated, ALWAYS get a professional inspection. An appraisal is also a good idea, but don't be surprised when it comes in at the exact purchase contract price. An appraiser has zero incentive to try to bring a value in over the contract price.
Logical Property Management4.9458 Reviews - Member since 2022 · 12 posts · 12 votes3y
@Drew Sygit this house was professionally inspected upon completion and the inspector found a non-working furnace with the thermostat hanging off the wall. Definitely should have sent him back a second time. I'd like to ask Martel and Zest the same questions, but Martel does not respond and Zest is also hard to get on the phone.
- 3yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
While investing via Turnkey Rentals sounds easy, you should understand that you will be paying full retail, often even more, for the properties.
Why? The Turnkey provider is looking to maximize their profits!
Also, there are numerous challenges dealing with Turnkey providers:
1) Terrible renovation work - we've taken over many properties that investor bought turnkey and they were shocked to learn the true condition of their property from our TakeOver video.
---So, get a GREAT property inspector NOT recommended by the turnkey company to avoid bias.2) Misrepresenting Property Class - have seen many turnkey providers in Metro Detroit area sell OOS investors Class C properties as Class B.
---So, learn the neighborhoods where you plan to invest and use Google Streetview to virtually explore them.3) Poor Tenant Screening - they typically can't sell a property until they place a tenant. So, they have a conflict of interest in waiting for the right tenant.
---So, insist on them providing the rental application and supporting docs for your review. This means YOU need to learn how to evaluate a rental application!4) Poor Property Management - Where do you think a turnkey provider will put their best staff, on selling properties and making $5k+/transaction or on property management and making $80/month transactions?
---So, ask about their standard operating procedures and make sure your management contract has an easy termination clause.What are your options if you experience one of the above? Everyone thinks they can sue to solve the problem.
Do you realize how much it will cost to hire an OOS attorney to sue the turnkey company?
Unfortunately, the majority of investors that experience terrible service from turnkey companies, figure out that it's not worth spending tens of thousands of dollars suing their turnkey provider and just move on - which allows the turnkey provider to not change their ways and stay in business:(
You should also check out this BP thread about the topic:
Logical Property Management4.9458 Reviews - 3yLloyd IppolitoPro MemberMember since 2020 · 1 post · 1 vote
Quote from @Drew Sygit:
@Thomas Harari we know bath Martel and Zest well and overall, they are both good companies with good people.
So, then why are you having issues? Probably due to your expectations not being set/updated and lack/miscommunication between Martel and Zest. Everyone is busy, so trying to coordinate meetings can be challenging.
As others have stated, ALWAYS get a professional inspection. An appraisal is also a good idea, but don't be surprised when it comes in at the exact purchase contract price. An appraiser has zero incentive to try to bring a value in over the contract price.
I'm no HVAC expert, but if the PM is saying the unit is undersized, that's a problem that should have been addressed in the rehab. I'm not sure Thomas' expectations are unreasonable. This is one reason I like the turn-key company and the PM to be both under the same roof: no pointing fingers at each other. That seems to be the problem.
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