Starting Turnkey venture, need tips!

[Charles Mitchell]

Good morning BP!

I'm in search of some tips trick or just general advice from people with turnkey experience (whether it be from a provider or consumer). Let me lay the foundation before I go any further.

I'll be operating in the Midwest C-B properties from OOS(Cleveland, St Louis, Birmingham etc.) The goal is do buy cosmetically distressed 3/1 SFH. There will be light to moderate reno's on each unit and every unit will be rented out before sold(PM will be handled by smaller PM's and not in house) and I will be incurring the costs of renting the units out so we can truly be turnkey. Sales prices will obviously differ based on multiple factors but were aiming for each project to retail between 70-110. Aiming for 15-25% margins and unit that are bought with mortgages will have ROI's between 15-20%.

Does anyone have any input, tips tricks or just general advice/thoughts?

Finding realtors for 20-40k properties is obviously tough. I've been writing offers on properties where the numbers will work with our goal but have so far been unsuccessful. I do have a PM lined up as well as contractor in our main market as of now but getting contractors to walk these projects where the total bill is 10-20k has been tough. I'm plugged into some wholesale providers but I'm a bit hesitant to use one until we at least get our first deal done.

Thanks in advance!

[James Wise]

Originally posted by @Charles Mitchell:

Good morning BP!

I'm in search of some tips trick or just general advice from people with turnkey experience (whether it be from a provider or consumer). Let me lay the foundation before I go any further.

I'll be operating in the Midwest C-B properties from OOS(Cleveland, St Louis, Birmingham etc.) The goal is do buy cosmetically distressed 3/1 SFH. There will be light to moderate reno's on each unit and every unit will be rented out before sold(PM will be handled by smaller PM's and not in house) and I will be incurring the costs of renting the units out so we can truly be turnkey. Sales prices will obviously differ based on multiple factors but were aiming for each project to retail between 70-110. Aiming for 15-25% margins and unit that are bought with mortgages will have ROI's between 15-20%.

Does anyone have any input, tips tricks or just general advice/thoughts?

Finding realtors for 20-40k properties is obviously tough. I've been writing offers on properties where the numbers will work with our goal but have so far been unsuccessful. I do have a PM lined up as well as contractor in our main market as of now but getting contractors to walk these projects where the total bill is 10-20k has been tough. I'm plugged into some wholesale providers but I'm a bit hesitant to use one until we at least get our first deal done.

Thanks in advance!

 I suggest getting your footing in 1 market before attempting to expand into multiple markets. I spent years & millions in Cleveland alone building up my infrastructure & downstream businesses before ever looking to do anything further out. If you go brand new into 3 new markets all at once & have to rely on other agents for everything what value proposition do you really have to offer to clients?