Originally posted by
@Jay Hinrichs:
@Steven Gesis B P audience has a love hate relationship with turnkey.
I started in turn key in 2001 when it was just beginning.. I funded many turnkey operators A and D's to the tune of 60 to 80 a month....
the business has evolved in those days it was the rate and term cash out refi that was hot.
in 08 when financing dried up the TK operators that survived learned to court the SDRIA buyer hard core.. now in the last 2 to 3 years financing has come back with 20 to 30% down.. so here we are again.. its not like 2001 when I started were folks got into these deals with no money and took money out on the refi.. but I think most of the tk operators today have stepped up their game and asset class.
but its still the same business.. you have west coast marketing companies that own no property aligning with folks like you who need sales volume so you hire them like RE brokers.
So at the end of the day its just a rental house tenants really have not changed if you buy were there are low end tenants you usually have some issues. better tenants Equal better experinces by and large.
Jay-
Yes, I can certainly see that, its great, I thoroughly enjoyed participating in the debate. Its very interesting to see both sides of the debate. However, I lean on the Turnkey side. I have been investing in RE for over a decade, I began at a very young age and have been addicted ever since. Today, I have the distinct pleasure to be fully hands on with a highly organized and sophisticated organization. I have had the distance pleasure of not only evolving within a great organization but experience all the facets associated with TK investing from A to Z. In-fact this past April we exited our "retail property management division" to a national vendor. Having participated in over 1,000+ SFR investments & renovations, I can be the first one to attest to the value SFR brings you. A good qualified turnkey provider will be able to assist in not only building but also sustaining a fruitful portfolio.
I was in the business in 08', in-fact this is the same time we deployed our "retail management division," since our exit of this entity we exclusively manage investments for Smartland investors, we do not take on outside SFR for management. 08' was a unique time, you are correct, all the financing disappeared, our investment side was not nearly as busy as we are today. All the years leading up to mid 2014, we dealt with many domestic and international cash buyers, we had to deploy and implement systems to meet the needs of our far reaching clients. SDRIA clients are still utilizing this resource, those that are aware of it. Some SDRIA can be coupled with Non-Recourse financing, today further expanding the opportunity and capacity of investors.Today, its a new environment RE investors have awesome resources for purchasing investment properties, using very cheap money. Cleveland, Ohio, my home base offers awesome returns in well established suburban neighborhoods, its tough to find assets under $100K with $1K rent average, in the suburbs.
I can appreciate your opinion about RE coupling with West RE brokers, however to date, our organization has yet to couple ourselves with these organizations. We have not found a sound platform to couple with, we have been courted in-fact by all, vetted and accepted, however, it does not seem to be a synergy we have attempted to develop. We do extensive due diligence and extensive research on all our assets prior to acquisition, we do not want to tarnish our good name coupling with some of the "pay to play" organizations, unfortunately most of them do not meet the Smartland standard. You would be surprised if you already do not know, most of those educational traps are not even licensed RE Brokers. BP is a great space for education, I believe the knowledge can be obtained here with no cost to the consumer. I wish I would have had more to commit to be more active in the community. I am here now and attempting to do this and offer my knowledge to the BP audience, so they may learn and make more educated investment decisions.
You could not have finished it any better, its a rental and in-fact our tenants have not really changed over time, if you by low end, you will have low end results, if you buy stabilized assets in established areas, you will have consistent results. Better tenants = better experience. The only think missing is the operator, you still need a good operator, if you top it off with a good renovation, then it is a total success. I truly believe that being strict and implementing extensive tenant screening, remaining patient and placing the right person not just anyone can make or break your investment.
It is so refreshing to see so many #TeamTurnkey members :)
