Vertically-integrated Turnkey Providers

[Ryan C.]

I know ‘turnkey’ has been a hot topic as of late, but I am wondering who is out there regarding truly vertically-integrated “turnkey” providers or “fully-managed” providers. My thoughts are that there would be significant benefit to a company with a solid reputation that handles the purchasing, rehab/construction, and property management completely in-house. I would be particularly interested in the most established providers in a particular area of operations, the ones that won’t be going anywhere, and may be considered the blue chips or market leaders of the industry. I know that there are companies that are a little spread out geographically and handle the purchase, rehab, and placement of a tenant, but I would be less confident that they would maintain a presence in that particular location. Also, I believe that a company that owns/operates the construction/rehab themselves (not just oversees) would be more likely to back the work rather than point fingers at other entities. They should potentially be able to save a little more on the rehab, etc., but I am skeptical that they would pass much of this savings on to the investor.

Basically I am interested in what companies are out there that handle every step of the process (apart from independent inspection/appraisal) in house and also push to keep the customer as happy as possible to keep them coming back to purchase more properties. I am sure there are benefits to ‘boutique' providers and other models as well, and I would be open to hearing about them, but I believe I may feel more secure/confident with companies that were most likely to stick around and strive to continuously earn my business with quality rehabs and PM. I am open to hearing about these companies anywhere, but I'm personally most interested in TX, FL and east coast (PA, VA, etc).

[Keith Anderson]

I've only found a few that meet your criteria (fully integrated, around 10+ years): Memphis Invest (which operates in Dallas and Houston as well) and MACK Investments in Chicago. 

Norada has been around for 10+ years too and I believe is vertically integrated in some markets and promotes in others. I'm not certain on that one but perhaps @Marco Santarelli will clarify.

That said, even if I buy from a "blue chip" turnkey seller I still plan to have contingency plans in mind. 

Though I have no intention of selling the property in under 10 years, what are the odds I could sell it at market value?

Do I have 1-2 backup property managers identified? Could I eventually transition to using brokers or PMs for lease-up and self-manage month-to-month?