All Forum Posts by: Paul Wurster

It doesn't cause me to worry, but it did make us think that it was an over promise. We tip toed into it.

The company that I went with was in Memphis and I heard them advertise and get interviewed on a national real estate radio show. The numbers were not so huge as to be unbelievable, and they have delivered on everything so far. I would say that all of the ancillary management fees were the only thing I didn't plan on. (to be fair, they are not crazy expensive or out of the ordinary) Their customer service is great, and I can get a response from any part of their organization within the day.

However, it was much easier to pull the trigger when I talked to a friend who happened to own 9 houses with them. Word of mouth, reputation, and recommendations are always the most important thing.

You can make the guarantees for only the first year. I originally thought my first turn key was too good to be true.

Add to the list: should be able to bring all necessary parties to the client. (ie. insurance, mortgage, property manager, and potentially legal.)

I'd propose another option that fits in the middle of yours.

Save the amount that you would be paying down in an account, and then when it builds up to an amount that can pay down to your MI limit, pay it down. Do the same thing until you have enough to pay it off.

This does two things for you. It allows you to have an emergency account if things go wrong, and it gives you the option to jump on other deals should they arise.

You will hate yourself if you dutifully paid down the note but did not have cash on hand when the roof collapsed.

It would be seen as a gift.

I have two turn key properties. I bought the first anticipating it to be too good to be true. The process was easy. The company that I bought from arranged everything I needed. It really felt like filling out paper work for money. I put 20% down on a conventional 30 year loan and started collecting rent checks the next month. They had placed a tenant a couple of weeks before I closed. After six months, I bought another. All in all, it has been a good experience. Both properties cashflow about $300/month which equates to about a 20% cash on cash return. I do nothing. In fact, I have never seen the properties in person. The only drawback is the management. They take a standard 10% fee, but they also take 200 for resigning a lease or half the rent for finding a new tenant. Not unfair by any means but it does cut in a bit. I bought them freshly rehabbed so any repairs were unexpected. The real benefit of them has been to get us excited about real estate. When they ran out of inventory, my wife and I started rehabbing and renting properties ourselves. We've done six more in the last 18 months. I credit the inspiration to the turnkey properties. We make a much higher return by ourselves, but it takes plenty of work. Our turnkeys were stupidly easy.