All Forum Posts by: Jamey Mako

A large share of blue collar jobs are going to disappear and I think there is no denying that. Some will stay, but the repetitive jobs (transportation, manufacturing, etc.) will all eventually be automated. You can even see it happening today: McDonald CEO stated that machines will eventually replace fast food workers. Uber is already replacing drivers with automated taxis. Amazon just launched its first drone delivery and plans on creating grocery stores without checkout lines.

So my question is, for those that invest in blue collar neighborhoods, does this concern you at all? Returns are good now, but what about in 10-20 years when these technologies truly start maturing and revolutionizing the labor force? I am looking to place my cash in real estate, but I am wondering if it is better to invest in higher end properties for the long run.

Has anyone sold properties to Turn-key marketers? What is the typical referral fee that they charge when they bring a buyer?

I've been looking for rentals through turnkey providers, but found very few that met the 1% rule. When using the typical 10% for vacancy, management, maintenance, I am only seeing 5-7% cash on cash return. A lot of these turnkey companies sell properties in similar cities that are considered great cash-flow markets. So I was wondering are all the good cash-flow markets just getting more expensive or is anyone still finding deals with better returns?

I know to earn referral fees you must be license real estate agent. But do you need to have your license hung with a broker? Or is it enough to just to pass your license?

I was wondering why some turn-key providers reject marketers and keep their inventory private? Wouldn't they want as many marketers as they can get? More marketers = More exposure = more potential clients. I understand that marketers expect referral fees, but if they lead to more transaction wouldn't referral fees be more than offset?

@Marco Santarelli @John Chin @Jay Hinrichs

Thank you guys! I appreciate the explanations. I have a much better understanding now.

I am interested in purchasing turn-key investing, but I would like to have a deeper understanding of how they form and function. I am talking about the marketers like Pinnacle, Norada, Real Wealth Network. I had a few questions I wanted to have clarified:

1. Do they just go out and find sellers that are rehabbing rentals and market them? Is there some kind of contract that limits them to market only certain providers in a given market?

2. If you are a seller, you want as many of these marketers to be displaying your properties. Do the sellers look for anything specific in these turn-key providers (licensed RE professional, track-record, etc.)?

3. Are the sellers pretty much home flippers (homes that still cashflow) that give a small percentage to the turn-key marketers if they sell to the client they bring?

4. How much do turn-key marketers typically charge when they provide a client? Do they continue to make money after a client has purchased?

Appreciate the responses in advance!