Turn-Key Real Estate Investing Company?

[Account Closed]

Does anybody use any turn-key REI companies to purchase their properties? Yesterday I visited a company in the city (Philadelphia) that specializes in acquiring properties and selling them to investors, taking care of all the rehab and management to prep the house for rental/resale, as well as management during rental.

Made-up scenario: They buy a property for, say, $20,000. They basically wholesale it to me for $25,000 and it needs $15,000 in repairs incl. all other costs (holding, closing, etc.), so $40,000 all in. I put $10,000 down and finance the other $30,000.

I can then either rent it out for some cash flow or have them sell it retail to someone on their list of out-of-country buyers. ARV would be $50,000. If I were to sell it for that, I and the company would split the $10,000 profit 50/50. So they make money on the front end AND on the back end, which I'm totally fine with as long as I'm making a nice return on my money for minimal work.

They basically say I can make ~$5000 per transaction for me just putting that $10,000 down and getting some financing; they take care of the rest. So that's $5,000, or a 50% ROI, over the course of about a month. Sounds WAYYYY too good to be true if you ask me. What do you think? One thing I don't understand is why they don't just take investors like me out of the equation and maximize their profits. And why isn't everyone with an extra $10,000 and access to financing doing deals like this?

Has anyone ever done any deals like this or with a company like this? Sounds like such an attractive deal making $5k on a $10k investment over the course of a month, but too good to be true???