Be very careful of turnkey providers!
I now am dealing with my third listing in very rough zip codes in Kansas City that were purchased by beginner out of state investors. All three were purchased from rent to retirement. These properties were marketed to them as "B-" class areas. In reality these are D class areas. They are forced to used that companies lender (all three sold significantly above value and of course appraised where the company needed it to). All three investors dealt with subpar at best property management (referred by that company) that placed tenants that destroyed their properties not once, but two or three times in some cases. Now they are trying to sell these properties, and at a loss.
For instance my listing at 2922 Bales Ave was sold almost 3 full years ago at $175k. Today I cannot move the listing (after full make ready) for $140k after over 6 months. Prices have continued to increase here in Kansas City. Meaning if that property was truly worth $175k, then it should be selling above $190k with how our market has appreciated. Now I am not saying all these turnkey providers are bad, but PLEASE do your homework when dealing with companies like this, on the company, AND the area. You are better off working with an experienced agent in the target market you are looking at that isn't also trying to make a quick sale (plenty of bad agents out there too).
Figured I should make a PSA on this because I hate seeing people jump in Real Estate, get taken advantage of, lose money, and then get out of it entirely. It is not a get rich quick scheme. I see a lot of investors lose, but the ones that do proper diligence can really set their families up for success. Rant over
- Johnathan Trimble
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#5 All Forums Contributor
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Thought it might be interesting to look at the subject company’s landing page on their website:
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Start investing with as little as 5% Down.
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- Don Konipol
