Need Help!How to screen turnkey properties?

[Deniz Eker]

Hello all,

I am interested in out of state Turnkey properties but have no clue about how to screen the market,properties.

I have found a company I feel comfortable with.

I need step by step guidance about how to assess if it is as good a deal as they seem to be..

Thank you!

[James Wise]

Originally posted by @Deniz Eker:

Hello all,

I am interested in out of state Turnkey properties but have no clue about how to screen the market,properties.

I have found a company I feel comfortable with.

I need step by step guidance about how to assess if it is as good a deal as they seem to be..

Thank you!

You can make or lose money in any market. 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.
• 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.