Turn Key Companies to recommend or stay clear

[Robin Gravlin]

I am looking to 1031 a SFM in California (approx $350,000) into a turnkey property out of state. I have heard there are good ones and let's just say, "Not good ones".

Before I leave my cash in a company, any advise as to the good ones or one, and one to stay away from?  You can comment here, or if you prefer to be on the down-low, pm me.  Happy Investing!

[Mike D'Arrigo]

@Robin Gravlin Have you decided on a market? Most turn key companies are in the Midwest and Southeast so you might want to narrow down your market choice first and then choose the best TK company in that area. In general, here are the things that I recommend avoiding in a turn key company:

• Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)
• Don't allow for your own independent property inspection
• Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)
• Require you to pay for any renovation upfront
• Sell only in cheap. low end neighborhoods
• Don't accurately represent the neighborhood/property classification
• Don't have consistent rehab standards for all properties
• Don't provide a scope of work for the property
• Can't provide references of repeat investors
• Require you to close before a tenant is in place