All Forum Posts by: Evan Kilbourne

Hi All,

I have been browsing around and inquiring about some properties offered by turnkey providers. While the people spearheading the turnkey provider companies seem to have good reviews (through BP at least), there are a couple of things that concern me.

Basically, I have heard from at least one provider that they are essentially "guaranteeing" some equity within the properties upon purchase. It has been advertised from 10-20% equity immediately upon purchase of the property. This seems inconsistent with other peoples' sentiments here that turnkey properties are generally offered at or even slightly above market

I will not name names, but the ones I have been speaking with are not big-name turnkey providers. In fact, it seems as though they have more of a network of people they can refer to for PM work, insurance, lenders, etc. but focus mostly on the acquisition and rehab of the properties themselves.

Is it too good to be true?

@Larry Fried I just read your articles, they're great! Would you mind sharing which crowdfunding platform you've been using?

Some possible sources:

-Wholesalers finding off-market deals and sending them to their network of all cash buyers

-REO's

-Short Sales

-For Sale By Owners

You'll find plenty of people here on BP who use these techniques to find, rehab, and sell properties.

***Disclaimer - I do not have any first hand experience with this. This is merely a regurgitation of what I've read/heard through BP.

I'd recommend vetting the already-in-place tenant as thoroughly as possible. Ask the company that put the tenant in place to share their screening process, as well as the documents collected in this process. It sounds like having tenants in place is a way to attract buyers to properties that could be in bad neighborhoods. I've heard of cases of "Phantom tenants" (AKA Management company fronted the rent for Xmonths", Squatters, etc.) As always, be sure to your own due diligence on the property, neighborhood, etc.

@Matthew T.

I use WaveApps and I love it. They have an app where you can upload receipts to, which is really nice as well. I use it to account for my AirBnB/Personal property. It works well for being a free program, however I do not have any experience using it in a scaled (i.e. multiple properties) environment.

@Chris Nordella

Congrats to you. I'm also in the process of searching for a viable property to invest in. This will likely come through a TurnKey provider, or by way of someone through the BP network. Would you mind PMing me who you used?

@Zach Lemaster please send information to [email protected]

Hi Antonio,

Welcome to BiggerPockets! A few things to keep in mind for vacations rentals:

-Higher upfront cost to furnish the place

-If you intend to buy as an investment property, expect 20-25% down for the property

-Be sure to keep an eye on your supply inventory

-Normal homeowner's insurance will not cover liability for commercial use. Consider getting a commercial policy (I use CBIZ)

-Many HOAs will not allow short term rentals, but in the event you find one that does, it's nice to know that a lot of maintenance can be avoided

Good luck on your journey!