Has anyone worked with ROI Turnkey Properties in Alabama?

Question

Hi Everyone,

I was recommended to talk to ROI Turnkey Properties in Alabama and had a consultation call with them.  They have properties in Birmingham, Huntsville, and Montgomery.  I can't find too may reviews on that provider though.  Has anyone on here worked with them?  I want to work with Spartan Invest in Birmingham but seems their inventory has been low and I haven't seen much in my inbox from them.  Does anyone have any other recommendations for turnkey or property management companies in Birmingham Alabama?  Thank you so much in advance!

Jay Hinrichs · Answer

Tesla blew that one out of the water with the model 3.. many bought  before they test drove them.. :) .. but I get it.

I have a vendor in B ham that Is not a big promoter and does a great job... been doing business with him for 14 years now.

very hands on.. and usually builds portfolio for his clients.. some have 20 to 50 homes with him.. Little different model.

But basically why your not seeing inventory in B ham from Spartan et al is the inventory has dried up .. Conrex and other hedgefunds are controlling the courthouse buys.. and the market in general.. same thing happened in Orlando.

at some point in time there is only so many  burnt out landlords that want to dump their liabilities to turnkey companies to rehab them and put them back into service.. this happened in Orlando to my TK vendor there we were doing about 10 a month with him.. but rents while went up a little the value of the properties went way up and turn key is no longer viable.. at least how BP folks want to buy it IE cash flow positive in the 5 to 8% range..

Axel Meierhoefer · Answer

@Amanda Kwong Hi Amanda, I spoke to them a while ago and had a good impression. I also did some research on them regarding what they are doing and all I could find was good/positive.

They recently expanded and you might also want to listen to their podcast. I think that helps to form an impression. Overall, in my experience, I can say that it has always helped me to develop a personal relationship. Spartan offers tours a few times a year and I would recommend doing that.

I ended up going with another provider because I really wanted to invest in Memphis and considered Spartan because they had more affordable price points. The turnkey provider I chose was the one that I had a chance to meet personally and get to know. It might sound old-fashioned. On the other hand, the argument that always resonated with me is this: If you were to buy anything $50K-$100K in value (i.e. a car) would you not at least visit the dealership and get a test drive. A few hundred $$ to visit should be worth it for a long-term relationship unless you hope to get the rare, "one in a lifetime" deal that doubles in value in 2 years and you sell for appreciation profit.

You know your situation best. That's just my 2 cents

Chris Clothier · Answer

@Jason Cox, That stinks what you are going through and it brings up one more point different than James although his is VERY important.  A third-party inspection is always the best route.  We have been doing this (rehabbing) for a very long time and have an experienced team and we rarely have a perfect inspection.  Usually there are minor issues, but sometimes our team and our vendors miss big things.  Those have to be addressed before a buyer buys it.

My concern here is the 3rd party referral you got.  The biggest issue I have had with referral companies, especially because they advertise as Turnkey, is that they have no skin in the game.  How is RWNs portfolio with this company performing?  You may be surprised to see how many they own.  My guess from experience would be none personally, but I do not know that for fact.  That has simply been my experience with these types of companies.  Every time we get solicited, it is the same thing.  We will send you a buyer and you pay us a crazy fee for each house.  We are big enough where we don't need nor want that service, but we are always courteous with our process.  When we explain they really need to be clients first so they can give a true testimonial about how we operate, the communication stops and they move on to the next company they can find.   My guess is that this is simply a company that is willing to meet the $5,000, $6,000 or $10,000 price tag for delivering a buyer so they get promoted  You are the real product in this transaction, not the house.

Now, I do not know how many houses each referral company out there owns with each vendor, if any, they are pushing.  But I do know that if you are not buying directly from the company and rely on someone else to tell you who they suggest, there is a price for that.  If they are not actual clients of that company, then in reality, they are simply pushing a company for dollars and not from a long, actual investment experience.  This is definitely not indicative of the experience you get with the bigger and better Turnkey companies regardless of city.

Lastly, I know the market you bought in is tough.  If I were in your shoes, I would be looking to offload this property as soon as possible and be asking everyone involved to make you whole.  No one should be earning a commission on this deal if you bought it defective and its been sitting for 6 months.

Best of luck

Jason Cox · Answer

Hey Amanda, did you end up working with ROI?  Know this post is a little old and I was just going to see what you came up with.

We purchased a property from them about 6 months ago, and have had nothing but issues.  I would really not recommend.  ROI Turnkey Properties were provided by Real Wealth Network and it was our first rental property through RWN.  We already had two rental properties we did on our own in Colorado, so we were not totally green.

The property has been sitting for 6 months while we try and get it in a rent-able shape.  The house inspector was provided by the vendor and he missed a defective roof, under stated damage to the floor and $6,000 worth of plumbing.  I really didn't think these things would be needed to be repaired on a true turn-key rental.  The property management team wouldn't rent out the property in condition it was sold.  I can give you all the details, but I would just stay away and hope other people see your post and catch notice.

Bests,

Jason

James Wise · Answer

Whenever you are buying properties out of state it's always a good idea to hire your own 3rd party inspector. This way you have an unbiased opinion as to exactly what is going on with the property. Nothing wrong with selling a property that needs repairs to an investor so long as that investor knows that going into the deal & is of course paying a price that reflects the condition of the property.

Jason Carter · Answer

Hi @Amanda Kwong,  check out @Antoine Martel, he sells turnkey in Birmingham and a few other cities.

Jay Hinrichs · Answer

send me a PM

Brian G. · Answer

@Jay Hinrichs

What Bham vendor do you do business with that helps clients build portfolios as mentioned above?

Antoine Martel · Answer

Thanks @Jason Carter.

Amanda - I'd love to tell you all about investing in Alabama!

Has anyone worked with ROI Turnkey Properties in Alabama?

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