Does anyone own Four or more Turnkeys?

[Matt R.]

I was reading BP Brandons latest turnkey blog post and there were just a couple comments. I know there are some bpers into turnkeys but when you check they only have 2 or 3 turnkeys tops...even with the bp folks who are the biggest advocates...they don't have more purchased.

It seems odd as it gets a lot of attention but when you start to pull back the layers....well it is like the Wizard of Oz...just one guy behind a curtain making a lot of noise. 

Now I am talking about from a traditional TK company, I was curious is there anyone on BP who has bought four or more?

How many? 

What is your longest hold time?

Thanks!

[Chris Clothier]

@Matt R. ,

First, I know that Saturdays are probably a busy day for you, but if you can get away this Saturday I am going to be out in California.  I am going to be talking about a lot of data, numbers and processes of Memphis Invest this Saturday morning in Orange County.  I know that is probably two hours for you, but would love to chat with you about business and share with you some of how we work and get your thoughts.  Saturday morning will be our event and we will have about 150 investors there - 40 of which are current investors and right now there are 14 who own 5 or more properties.  

Would love to have you there and everyone is free to talk to any investors in the room to hear about the good and the bad.  They will share warts and all!  Plus we are giving them their 2014 analysis at that event so they will see exactly how their portfolio performed last year.  It will be up to them, but I'm sure all will share how they performed.

I am also going to drive up the BP Meetup in the Beverly Hills area that afternoon.  There I will just be a guest and looking forward to meeting other BP members, but would still welcome the chance to meet and talk.

Finally, Sunday...I may be able to hit the surf!  As soon as I finalize my schedule I will reach out and see if its possible to grab a lesson from you!

The numbers:

We have a designation for investors with 5 or more properties.  They are called the WOW Group.  They have wowed us by purchasing what is essentially a half million dollar portfolio and we want to WOW them with extra service.  Here is the breakdown on our investors for total transparency:

Investors - Properties

126 WOW Group with 5 or more       -       850 properties

1 with 15                      -          15 properties
1 with 14                     -           14 properties
2 with 13                      -          26 properties
1 with 12                      -          12 properties
2 with 11                      -          22 properties
4 with 10                      -          40 properties
5 with 9                        -          45 properties
17 with 8                      -       136 properties
20 with 7                      -       140 properties
35 with 6                      -       210 properties
38 with 5                      -       190 properties
60 with 4                      -       240 properties
115 with 3                    -       345 properties
267 with 2                    -       534 properties
469 with 1                    -       469 properties 

Just illustrates how long it takes to build up an investors portfolio.  Part of our problem now is so many investors that they have to be patient when buying their next property.  We sell between 58% and 64% of our monthly closings to current investors buying their next property.  With an average of 56 closings per month, that means investors simply have to be patient if they want to continue to buy with us.  That takes planning and patience.

As for the investors with 1 property, most are set and have a plan to buy more.  Many first purchased in 2013, 2014, 2015, but there are probably 100-150 of them who will not purchase another property.  Some were mistakes on our part, some were mistakes on the investors part (no Turnkey investor should ever stop at one property - in my opinion if they do there was a mistake made).  I would be a liar if I said all of them were completely, 100% satisfied with their investment.  Some of those investors with one property will not buy a second from us and many are still sitting on one property from back in 2009-2011.  

Again, that shows an error on our part, but a vast majority of those investors will build beyond 2 or 3 - it just takes time to push them up the ladder.