All Forum Posts by: Steve Donovan

Hi @Wendy Busa  As others have suggested, you should send your funds only to the title company.  Their purpose is to protect you in this transaction as you are in effect, taking on the role of the bank.  Don't let your "customer" talk you into giving them the money directly.  Best of luck as you enter the world of providing private money!

Greetings @Eugene Pasechnik! Firstly, if you still have friends and family in Ukraine, I hope that they are all safe in this troubling time. Regarding your real estate question, I think the Midwest offers some of the strongest CoC returns and also will likely hold up better in the event of any upcoming correction in the market. Best of luck to you in your investing future!

Turnkey is likely your best option given the funds you have available. If you look around there are deals that will offer you greater CoC returns than what you have stated. Best of luck to you in your investing future. The first one is the hardest!

No slowdown yet, but people are talking and expressing concern.  In the grand scheme, 5% is still very cheap interest, and in a few years, everyone will be wishing they would have grabbed all the properties they could when interest was "only" 5%  Rates definitely will not be heading back down in the near future; the smart money will be buying now.

Congrats @Aniqah Kalam!  Sounds like a great investment and valuable learning experience.  Best of luck to you in your investing future!

hello @Erik Johnson  Turnkey investing is a great option for someone without the time or experience to make a more traditional investment.  You can also benefit from a different geography that may offer better returns than your area.  If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

All the best to you as you begin your investment journey!

Greetings @Sean Sullivan and welcome to the real estate investing universe.  These forums provide a wealth of information and sources of ongoing support.  Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns.  If you go this route it is important to realize that there is no common definition of turnkey.  In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed.  The investor then waits for completion and tenant selection prior to earning any income.  Other providers sell the units only after the rehab is completed and the tenant in place.  

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

All the best to you as you begin your investment journey!

Hello @Monique Ilagan  You can possibly find some turnkey properties in the 130-140k level in the Midwest. This would require slightly over $30,000 down.  Be careful however; lower entry point typically means higher risk in terms of quality of neighborhoods and the the condition of the properties.  Best of luck to you as you get started in your investing career!

Hello @Nitesh Gandhi

There are many reputable nationwide turnkey providers and also many not so good ones. Ask questions of each and get recommendations from existing clients. Also, be aware that turnkey means different things to different people... In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

Best of luck to you in your investing future!

• Wisco Turnkey LLC

Hello @Christopher Knibb Be extremely careful when trying to justify numbers and avoid talking yourself into future appreciation. While the market may continue to increase in price, it could also move the other way, especially with forecasted interest rate hikes and current world events. As others have suggested, "reasonable ROI" is unique to each investor, but you should have your money rules and not be quick to change because no deals work for them. Best of luck to you in your investing future!