Turnkey advice, HELP ME!!!

[Jake Mires]

New investor here! Me and 3 of my friends are going to be pooling our money together to buy some real estate, we're looking to buy 1 right now, then assuming things go well, acquire 30-40 SFR's. All buy and hold. We all live in California and want to buy out of state where we can get cash flow. Looking for properties in the 60-80K range. I'm an agent in CA so I know my way around real estate. But we want to use a turnkey company to buy through for the ease of it. Ive heard good and bad things. Can anyone legitimately reccomend a good turnkey company? Or provide any suggestions? Any info helps, thank you!

[James Wise]

Originally posted by @Jake Mires:

New investor here! Me and 3 of my friends are going to be pooling our money together to buy some real estate, we're looking to buy 1 right now, then assuming things go well, acquire 30-40 SFR's. All buy and hold. We all live in California and want to buy out of state where we can get cash flow. Looking for properties in the 60-80K range. I'm an agent in CA so I know my way around real estate. But we want to use a turnkey company to buy through for the ease of it. Ive heard good and bad things. Can anyone legitimately reccomend a good turnkey company? Or provide any suggestions? Any info helps, thank you!

 Welcome to the site Jake.

Out of State is cool. Tons of markets in the Midwest will have properties in the range you mentioned. Cleveland, Toledo, Indy to name a few. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• 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.
• Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.