All Forum Posts by: Steve Donovan

I agree that rates will rise in March/April and then at least once more before the end of the year.  Higher interest rates will definitely impact prices, especially on investor properties.  Every investor has his/her own threshold for acceptable returns, and cost of money is a big factor in determining the return level.  As cost of money and payments per month go up, the price an investor is willing to pay has to go down in order to meet their return threshold.  If rent prices rise again to offset the interest rate hike, then max price paid will go up.  In the near term, I see prices lowering slightly especially in the markets that recently saw rapid and high runups in pricing.

yes, you should look to investors in the area where you are investigating to find their recommendations when building out your team.  A reputable property management group should give your property the same level of attention whether you own one unit or one hundred.  After all, the best way for you to buy more is to be satisfied with their past performance.  Best of luck to you!

Hello @Leila Moussavi  Congrats on starting your investment journey.  In addition to your already detailed list, for out of state properties I would add:

Ensure that you have access to a reliable contractor to do the necessary rehab work if not buying a turnkey property.  Your real estate professional located in the target area should be able to help with this

Ensure you have a reliable property manager in the area.  Again, your boots on the ground should be able to assist with this.  

Long term success of your project will very much hinge on the quality of your property manager and your maintenance person(s) to deal with issues as they arise.  All the best to you in your future investments!

@Kati Muxlow  Sounds like an awesome deal!  Good for you, and best of luck to you in your future invesments!

@Hark Tukay  This is terrible and bad actors such as this give the whole turnkey industry a bad name.  As stated by others, the success of any turnkey property depends on the reliability of the team managing it and communication is the first and most important piece.  Best of luck in getting your funds back and you may want to consider weighing in on the forums with the name of this shady operator to save others from your pain.  Better luck in your future invesments!

Greetings @Charles Johnson !  I won't give specific company suggestions, but I will offer this advice that I have posted in other similar forum posts.  Please feel free to reach out with questions and all the best to you in your investing future!

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.

• Wisco Turnkey LLC

@Keith Cuddeback  I agree with some of the other people weighing in on this.  All investments should cashflow in my opinion.  Anyone buying properties, with zero or negative cashflow, hoping the market will keep moving up is playing a very dangerous game.  Increasing interest rates will have an impact on selling prices and will likely hit the markets with the highest recent appreciation first and hardest.  Best of luck to you in your investments!

Hello @Hemal Adani  I'm pasting below a response that I posted to a similar thread.  Feel free to contact me if you have further questions.  Best of luck to you with all of your investments!

 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.

Hello @Jason Simonelli  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 with all of your investments!

Congrats @Jason Runkel! This sounds like a great deal.  All the best in your future investing!