Financing Turnkey Properties

[Rob Hakes]

Hello All-

I have been looking into buying some properties with a turnkey company.  From what I see, correct me if I am wrong, most of these turnkey outfits are selling their rehabs for quite a bit over 'retail' value.  It seems that they are valuing the property based on potential income rather than market value.  Though it limits an exit strategy, I can swallow that.  

In your experience, how would the lender handle the appraised value? Would they look more at the retail value or the value based on income potential? Would I be required to pony up a bigger down payment to bring the LTV to where the lender needs it?

This would be my first turnkey investment so any input and direction would be great.

Thanks