Experience with 5 or more turnkey properties?

Question

Hey everyone... I'm fairly new to bigger pockets and currently exploring turnkey as an initial step to starting out in real estate.

I'd love to hear from people who have at least 5 turnkey properties-

What has your experience been like?

Would you recommend it or not?

And what is your number one piece of advice for a new investor like myself based on your experience?

If you have a company or individual you would recommend, if we're allowed to post that- I would LOVE to know that as well.

Thanks team!

Linval T. · Answer

@Cailyn AuneWelcome to the vibrant BP community. Ok, now that you have taken your initial step, below are some quick links to get engaged.While you wait for feedback from turnkey property owners I added the below blogs on turnkey investing that you might find useful.https://www.biggerpockets.com/renewsblog/2015/08/20/askbp-089-how-do-you-evaluate-a-turnkey-company/ (Turnkey Evaluaton)https://www.biggerpockets.com/renewsblog/2014/03/23/what-does-turn-key-real-estate-business-entail/ (Turnkey REI) http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meethttps://www.biggerpockets.com/alertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/termshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/perkshttps://www.biggerpockets.com/forums/categorieshttps://www.biggerpockets.com/rei/glossary/https://www.biggerpockets.com/webinarhttps://www.biggerpockets.com/courses/a-beginners-introduction-to-real-estate-investing (video courses)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)REI can be very daunting, but, before you go searching for that 1st buy, please take a few minutes to bone up on the tips in link below.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REI)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.Feast on the Podcasts, #askbp Podcasts, blogs and webinars Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational and thought provoking ideas relevant to REI.

Nancy E. · Answer

Hello Ali@Ali Boone Presently, we are at the closing phase of our first turnkey purchase. Since this is our first with many more to go, and you have numerous years of experience. Can you contact me offline and provide your recommended list of turnkey companies? I want us to research different regions - purchasing a few in each area we've vetted. Thanks for your help in advance. From Nancy

Ali Boone · Answer

Hey Cailyn!I fall into your desired category. My answers to your questions-What has your experience been like? A great learning experience! Was a little more...full of learnings...in the beginning than I planned, but I recovered nicely and now everything is in tact. Mostly the learnings came from the property management side of the turnkeys. However, when I was buying it was a totally different (and newer) time for turnkeys and I don't see the same levels of instability that existed back then when I bought. I work with turnkey buyers all the time now and no one has really experienced anything I ever did. But other than the "learnings", I will still only buy turnkey. As long as you are working with the right people, it's great. I love having my REI "work" be limited to 1. shopping for properties and 2. receiving checks every month :)Would you recommend it or not? Oh yeah. It's the only route I go for myself.And what is your number one piece of advice for a new investor like myself based on your experience?Work with the right people! It's critical.If you have a company or individual you would recommend, if we're allowed to post that- I would LOVE to know that as well. I can send you info offline of who I've worked through, but with the disclaimer that I can be offered referral fees from people I recommend.

Cashmere Robinson · Answer

Hello All,Thanks for the links. Really helpful. I am a investor from the Bronx area where lots of activity is taking place. Any advice is really appreciated.

Cailyn Aune · Answer

@Linval T. Wow... that was quite the detailed post! Thanks Lival! I have definitely been through part of that material, but not all yet. :o) That is a great check list all in one place to plow through though. THANK YOU. I have listened to at least half of the podcasts (today's with Hal Elrod was fantastic) and webinars so far. But there is so much more reading I can do. It definitely can feel a bit daunting... the more I learn, the more I begin to understand how much I don't know... ha! A good thing but a big overwhelming. Thank you again- a new person like myself will take all they help they can get if they are smart. :o) Blessings!

Cailyn Aune · Answer

@J Beard - Are you purchasing these local or out of state? I definitely see what you mean by seeing that as "turnkey." We have looked into some multi-fam units in our local area... I keep crunching numbers, but I always feel like the numbers seem awful after including utilities that aren't paid by the tenants, etc. I've looked up and researched how to calculate... but maybe I"m still missing something... Thanks for the perspective J...

Cailyn Aune · Answer

Brie- Thank you for the tip! I will definitely check out those threads- it's helpful to have the link, thanks! I have been reading up on quite a few of them as well... And I was hoping to connect with a few people who have recent/personal experience as well. Thank you so much.

Jeff B. · Answer

Just fyi: I bought a 6unit mfu and kept the tenants in place - - in my mind (and others question the following), this created a turnkey property without the overhead/margins of purchasing thru a company that acts as a broker, selling the same commodity.

Brie Schmidt · Answer

Welcome to BP! While I have not purchased turnkey myself, it is a talked about topic on BP. Here are some previous threads that might interest youhttps://www.biggerpockets.com/forums/92/topics/139...https://www.biggerpockets.com/forums/48/topics/248...https://www.biggerpockets.com/forums/311/topics/25...https://www.biggerpockets.com/forums/311/topics/12...https://www.biggerpockets.com/forums/311/topics/19...If you want more, just search for turnkey at the top right, over 2,300 threads come up