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Updated over 2 years ago on . Most recent reply
I am considering Turnkey Investing and am looking for advice
Hey new friends. I'm brand new to BP and the real estate investing world. I run a growing book publishing business and want to use our profits to invest in real estate. Searching for properties, negotiating, buying, rehab, renting, and managing are NOT in my sweet spot. I'm considering Turnkey and perhaps Syndication.
Does anyone have experience, counsel, or warnings that could help as I investigate my options?
Thanks so much.
Michael
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#5 All Forums Contributor
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Quote from @Michael DeLon:
Hey new friends. I'm brand new to BP and the real estate investing world. I run a growing book publishing business and want to use our profits to invest in real estate. Searching for properties, negotiating, buying, rehab, renting, and managing are NOT in my sweet spot. I'm considering Turnkey and perhaps Syndication.
Does anyone have experience, counsel, or warnings that could help as I investigate my options?
Thanks so much.
Michael
If you follow the punch list below, you'll probably have success in the space.
- Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area.
- Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
- Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
- Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
- Make sure your property manager is a licensed real estate brokerage.
- Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
- Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.