Should I be concerned?? First 2 Property Reccos from TurnKey

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Should I be concerned??  First 2 Property Reccos from TurnKey

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I would not buy a rental with a pool unless you were in Vegas PHX those type of areas.and I would pay for a pool service your self if you do buy one with a pool.. they are liabilities both functionally and a accident waiting to happen.. someone drunk diving into the shallow end and getting hurt... kid falling in and getting hurt etc.you won't get any more rent for themGhetto NUFF said about that.. It sounds like you maybe using a marketing company which is just repping a rental fix and flipper.what I have come to realize in the rental game.. one turnkey is a moniker.. there are two schools of thought about what @Tom Ott describes above... many of the Aussie companies thought the same thing but the turn key companies were controlling everything and hiding issues since they controlled it all.. Many hedge funds found this out as well.. they first wanted the homes rented and performing then realized the providers were too aggressive putting tenants in .. then they wanted them vacant so they could vette the tenant and have their own management.. the Aussie companies I know went that route as well. they wanted to separate management from the provider.. either way I look at investing in rentals in any given market however you come by them as wanting to buy homes in areas that are receiving the top 20 to 25% of the median rents... NOT the bottom .. the bottom are trouble long term.. the top are usually the best tenants.let me explain a little and I am stealing this one from Chris Clothier.rents 600.. to qualify you need 3X that's 1,800 a month.. that leaves 1,200 for the rest of your bills. so they are living week to week on little upset and your not getting your rent.now take 1,200 rent 3X is 3,600 now they have 2,400 to live on for the month.. we all eat the same food pay basically the same in UTLS.. and gas is gas etc etc. who do you think long term will be more stable.

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@Marty Joyner If you are considering Turn Key in this area, I would highly recommend Billwood Properties. They are out of Hagerstown,MD. About an 1.5 hour drive away from DC. On a house worth 100k, they are collecting around $1,700/month in rent. They rehab the property prior to selling it to you so maintenance fees will be low in the first years of you having the property. I know the owner and he is an honest and ethical man. Let me know if you would like more details.

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Where are they even finding these homes? If the own them and remodeled them (like a true turnkey provider) they should be aware of anything like that. If they are just acting as agents and finding you homes they think are "turnkey" then I would recommend walking away now. If you a re really going Turnkey, make sure it is an actual provider who really does this. Sometimes agents just say they are a provider because they find you homes that the THINK need little work.Don't be fooled b people using the term Turnkey and not knowing what it means.

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Marty Joyner Is say try someone else. However, devils advocate, have you told them your criteria? It's hard for anyone to guess the preferences of the buyer. Some don't might warzone properties but you might be outsized returns. Others, like me, have zero interest. If your broker is showing you properties that don't meet your stated criteria that's far different than floating a few to you to test the waters.

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Marty Joyner I think it is necessary for you to know your investing / buying criteria before you buy anything. You should also know the city before you buy there. Definitely visit and meet the provider in person to check out the quality, operation, and people. IMO that's the price of doing business. If the company rep can't guide you to figure out what you should buy, but just sending you deals to choose from, they need more training before they can help you. From the look of it, it seems the rep is selling you units he/she hasn't even thoroughly reviewed. That doesn't give me confidence in the provider / marketer either. If this provider is so well known / like on BP, it may help them, as well as others if you post their name and give them a chance to explain. Just a thought. By the way, nothing wrong with REIT, crowd funding, notes, private lending and anything else that's RE related. Different risk / return / avenue to make better ROI than what the banks offer. Good luck figuring it out. Henry

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@Jay Hinrichs We typically get a premium for houses with pools. Sometimes this premium doesn't offset the costs, but many times it does.

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Marty Joyner I'm considering jumping in and using a TK provider for my first property. I've done fairly extensive research on providers and markets, but would be interested in hearing more about your experience and if this is a provider I should stay away from. Any chance you could send me the details via a message?

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@Marty Joyner, you have to have a lot of faith in a turn key provider and it has to be well-placed to succeed (because there are lots of ways they can take advantage of you that you may not discover until it's way too late). If they are treating you this way when they are expected to be on their best behavior and you can detect problems the most easily, what will they be doing later on when it's more difficult for you to determine if they are doing the right thing or not? Personally, I would look elsewhere.

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If you are looking into crowdfunding, might I suggest Brelion. We have used them in the past and they are great!

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Don't blame you rental game is not for everyone.... and their is nothing wrong with a balanced portfolio.. some of the crowd funders are doing a very nice job.. some have stumbled badly so be careful there. Hooking up with a really good HML in your immediate area can bring you some nice returns.. there is no leverage but the returns are good and you can drive by and look at your collateral and make sure your comfortable..