Turnkey brokers (Jason Hartman and Real Wealth Network)

[Jeff Macdonald]

A year ago, I started listening obsessively to all the REI podcasts and books I could get my hands on, and I am in escow on my first flip right now. I think I will continue with flipping to increase my income, and re-invest in rentals for cashflow.

For most of the last year, I have thought negatively towards out-of-state turnkey investing.....the risks associated with a long distance property management relationship just seemed too high. But after a local acquaintance shared his rational for turnkey investing, I'm starting to see the advantages. Likewise, my months of searching locally in Northern California have been fruitless. 

In the process of researching turnkey opportunities, I've run across two turnkey brokers, Jason Hartman (jasonhartman.com) and The Real Wealth Network (run by Rich and Kathy Fettke). They vet markets and property managers, and then list turnkey homes for sale on their sites. Yes, it is important to do my own due diligence regarding markets and property inspections, etc.; but, I appreciate having an extra partner in the process. Does anyone have experience with either of these turnkey brokers (maybe there is another word for what they do)? 

Thanks

[Kathy Fettke]

Hi all, I just ran across this thread.  

@Jeff Macdonald @brand You are so right. There are so many people and companies who call their properties "turnkey" but in reality, they are nothing more than lipstick on a pig, and sometimes, not even that good. In the 15 years I've been running Real Wealth Network, I have run into more sharks and sociopaths than I care to admit - people who will gladly rip off a new investor for personal gain. But several years ago we hired a Six Sigma Black Belt to put these turnkey teams through the test. We created R.E.A.L. turnkey standards so that buyers would know what they are getting, and be able to verify through inspections and appraisals.

@Dani Beit-Or Nice to see you here! It's may appear that an out of state investor could get a better deal by doing it themselves. But what about the costs of flying to the area repeatedly, staying in hotels, finding a team, managing the contractors, etc. Many of our members have told us that in the end, it's been much cheaper to buy through our certified R.E.A.L. turnkey teams than doing it themselves. The local companies get discounts on labor and materials and have systems in place to keep costs down. 

Sure, if you are a local professional, you can get property cheaper and fix it yourself. But the same could be said of an auto mechanic. He can do his repairs for less than I could, but I'd rather not do that, and let's be honest, it wouldn't go well if I did it. I'd rather hand it to a pro. :-)

Real Wealth Network members, like @Jeff Macdonald are forced to rely on other people if they are going to buy out of state - especially if they already have full time jobs! But that's good, because it makes it a real business. Business owners don't do the work themselves - they hire good people who are better at the job than they are. That's what makes it truly passive.