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Updated over 7 years ago on . Most recent reply

User Stats

56
Posts
39
Votes
Micah Mcarthur
  • Real Estate Investor
  • Louisville, Ky
39
Votes |
56
Posts

I dont understand the Turnkey game

Micah Mcarthur
  • Real Estate Investor
  • Louisville, Ky
Posted

I am just starting to explore the turnkey option of investing, and right away, I am having serious doubts, because it doesnt make sense.  It sounds too good ....

If a turnkey outfit buys a distressed property at a discount, puts money into it, rents it, and manages the property, exactly how and why are they going to sell it to me at a price that allows me to make a profit?

Why wouldnt they just hold the property, and all the equity and cashflow with it.    What am I missing?   

There was a post a few days ago, and someone was talking about $20K instant equity, because the turnkey company was selling the property below market?   How does that even make sense?   

Most Popular Reply

User Stats

675
Posts
884
Votes
David Song
  • Real Estate Broker
  • Redwood City, CA
884
Votes |
675
Posts
David Song
  • Real Estate Broker
  • Redwood City, CA
Replied

The TK provider flip the house to OOS investors, to get a higher profit. They sell the TK at higher prices than on open market to local people.

This is a scam targeting OOS, especially CA people. You lose money at the time of buying.

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