Turn key experience buy and hold (out of state)

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Turn key experience buy and hold (out of state)

Omair Q.
Bethpage, NY · Member since 2013 · 2 posts · 2 votes

Hello everyone,

I'm new to REI and to BiggerPockets. I'm starting to educate myself how real estate investing works, what the terms are, what to look for, etc. I have a demanding full time job in Long Island, NY. I've developed my goals in real estate. I'm interested in doing buy and holds for long-term passive income. I do not have the capacity/know-how, nor the time required to rehab a place myself. Nor do I want to personally manage the property due to my busy job. Furthermore, buy and hold is almost impossible to cashflow in my market, where you get less than 1% rent to purchase price ratio and property taxes are almost always over 10k/yr. That being said I am highly inclined to investing out of state but have my reservations since I will be so far away.

I know Michael L. has some properties in Dayton, OH (living in Long Island as well) I was reading some of his (your) posts, please let me know how your experience has been.

Based on my situation I've been led to turn key investing. I've read about the premium they charge and the shoddy rehab in some cases and the lack of rental guarantees, etc. My question is are there any specific turn-key companies any one can reference they have personally dealt with and had a positive experience. This can be in any city. Please share your experience.

Also, I wanted some feedback on Memphis Turnkey (http://www.memphisturnkey.com)

Any opinions on this company? Norada Real Estate. Any experience with them?
(http://www.noradarealestate.com/)

I'm aware there are proponents and opponents to out of state investing and turn key investments. Any advice in how I can reach my stated goal through turn key or non-turn key investing would be appreciated!

1Reply
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Most Popular Reply

Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
13y

Hey Omair Q. -

From what you have shared, it sounds like you are the type of investor most attracted to turnkey investments because of your location, knowledge and time constraints. I think any of us that have been in the business of providing turnkey investments for close to 10 years will tell you it is not "completely hands-off", but it is as close to a passive investment you can get while still owning deeded real estate. Good luck with your investments.

As far as Memphis Turnkey, the owners are Alex and Benolyn Craig. I thought they were on here and couldn't get their names to come up with the alert system, but im sure you've already connected with them if you are asking. I do not know them real well although I have met Alex before and I have not heard any negative comments about them. We get a lot of transfers where investors want to move properties from one management company to ours, but I do not recall ever having one of their clients want to transfer so I would take that as a definite positive. From everything I know and anything I have heard, they are good people who run a good small company. Of course, continue to do your due diligence, but as another company operating in Memphis, I have not seen any red flags on them or their company nor have I had any other investors come ask us for help after doing business with them.

As for Marco Santarelli, I have a lot of respect for the way he goes about doing his business. I think he is a solid source of information and advice and he spends a lot of time looking at different markets around the country. His company gives out a wealth of information for investors and I personally really appreciate the open manner that he uses when giving data, info and feedback.

As for investing our of state and turnkey, so much of your success will be determined by how you approach your relationship with a provider and your record keeping. Remember, that passive investments do not mean that you remain completely passive and never check in, follow up and keep your records straight. I can tell you from experience, the investors that have the most positive experience when buying turnkey out of state are the ones who build strong connections with the company they are doing business with and are comfortable asking tough questions. The strong relationship keeps you connected and informed and the willingness to ask tough questions keeps the relationship on an appropriate level where the company always knows they work for you!

Best of luck as you keep moving forward and get started. I love that you found BP and are getting active and asking questions on here. This site is THE BEST place to get the answers you are looking for.

Chris

Podcast Guest on Show #224
REI Nation4.576 Reviews
WebsiteView Page
2Reply
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  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    13y

    Hey Omair Q. -

    From what you have shared, it sounds like you are the type of investor most attracted to turnkey investments because of your location, knowledge and time constraints. I think any of us that have been in the business of providing turnkey investments for close to 10 years will tell you it is not "completely hands-off", but it is as close to a passive investment you can get while still owning deeded real estate. Good luck with your investments.

    As far as Memphis Turnkey, the owners are Alex and Benolyn Craig. I thought they were on here and couldn't get their names to come up with the alert system, but im sure you've already connected with them if you are asking. I do not know them real well although I have met Alex before and I have not heard any negative comments about them. We get a lot of transfers where investors want to move properties from one management company to ours, but I do not recall ever having one of their clients want to transfer so I would take that as a definite positive. From everything I know and anything I have heard, they are good people who run a good small company. Of course, continue to do your due diligence, but as another company operating in Memphis, I have not seen any red flags on them or their company nor have I had any other investors come ask us for help after doing business with them.

    As for Marco Santarelli, I have a lot of respect for the way he goes about doing his business. I think he is a solid source of information and advice and he spends a lot of time looking at different markets around the country. His company gives out a wealth of information for investors and I personally really appreciate the open manner that he uses when giving data, info and feedback.

    As for investing our of state and turnkey, so much of your success will be determined by how you approach your relationship with a provider and your record keeping. Remember, that passive investments do not mean that you remain completely passive and never check in, follow up and keep your records straight. I can tell you from experience, the investors that have the most positive experience when buying turnkey out of state are the ones who build strong connections with the company they are doing business with and are comfortable asking tough questions. The strong relationship keeps you connected and informed and the willingness to ask tough questions keeps the relationship on an appropriate level where the company always knows they work for you!

    Best of luck as you keep moving forward and get started. I love that you found BP and are getting active and asking questions on here. This site is THE BEST place to get the answers you are looking for.

    Chris

    Podcast Guest on Show #224
    REI Nation4.576 Reviews
    WebsiteView Page
    2Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    13y

    Alex's company Memphis Turnkey, has a great name in town and their rehabs are very good. You will be safe with them!

    0Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    13y

    Hi Omair Q.,

    Welcome to BiggerPockets!

    Your lack of time and "know-how" to find, rehab and/or personally manage your properties certainly qualifies you as a turnkey investor. You also happen to live in a market where the numbers simply do not make sense from an investment perspective.

    Of course, investing in turnkey properties is not for everyone as some investors are more hands-on, or work with real estate as a full-time business.

    Chris Clothier has given you some very good advise. He's absolutely right about turnkey investing being a passive investment, but not completely "hands-off". Investing is a business, and it must be treated as such. You will build relationships, nurture them, and stay involved -- and that's especially true with your property (i.e. asset) manager.

    I will add one more consideration for you to this thread, and that is reputation. Chris and I have been in this business for close to 10 years each. I know most of the players in this space, and we can both tell you there are some shady players, while others simply come-and-go. Chris is right about being "comfortable asking tough questions". I consider that to be part of your necessary due diligence.

    Feel free to post any other questions you have here. There is lot of talent on BiggerPockets, and we're happy to help out.

    Continued success!

    0Reply
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