One Stop Shopping

[Mark Masiel]

I recently came across an Investment Brokerage & Asset Management Firm that basically acts as a Walmart of income property investing as they offer everything from the search for the property (courts, private banks) and private lending, to rehabbing with their own in-house construction crew. They are also PMs.

I spend much of my time overseas so having such a team (even though they I am assuming will be hired guns rather than partners) sounds like it would be beneficial and almost too good to be true for a novice investor.

I would appreciate thoughts on using such a company. These guys aren't exactly turnkey because they are with you from the conception. How much does one stand to lose financially through using this service? They do not mention fees on their site-perhaps they have one other than PM, or maybe all hidden? They do claim their construction crew offers 30 percent less costs than local contractors.

I am skeptical by nature and this all sounds too easy. I am also willing to concede profit for using such a team (if they are good) and the potential loss of income could be offset by not having a bad novice do it yourself deal.

Thanks in advance!

[Jon Holdman]

Different from turnkey only in the details. All the same risks apply. Rental investing is not passive. Plenty of folks out there that will take you money. At best they will sell you an OK deal at an OK (retail) price and charge you retail for the fixup. Then they will charge you typical PM rates, including marking up ever job they do on the property. At worst this will be a money pit. You'll get a shoddily rehabbed house at a high price and will have ongoing costs that will pull money out of your pocket. Only get into a deal like this if you're able to 1) go to the area and meet everyone involved in person, 2) research the area on your own so you really know what houses cost and what rents are (hint: prices and rents where you live in Miami are completly irrelevant), and 3) are willing to get on a plane and go deal with an issue if need be.