Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on .

User Stats

676
Posts
550
Votes
Axel Meierhoefer
  • Rental Property Investor
  • Escondido, CA
550
Votes |
676
Posts

Isn't creating a turnkey portfolio like creating a new company?

Axel Meierhoefer
  • Rental Property Investor
  • Escondido, CA
Posted

I have been writing about my own turnkey investing experience here at BP. As part of the follow-up conversations from a recent thread, several people asked me how I would compare what I have been doing to other activities people might be familiar with. I thought about it and I think it is pretty similar to forming a new company.

Here is what I see: When I start a new business I am the founder and I need people who are experts in the different areas that the company needs to be successful.

I need accounting, I need sales, I need marketing, I need management of the assets we have, I need insurance, I might need financing if I am a CAPEX intensive business, like a home builder or contractor and if I were to manufacture things. I would also need customer care and service, project management, and a few other components.

A lot of these needs are typically organized in departments. In each department, I like to have a manager and a team of experts who know how to do things. In the engineering department, I probably want to have experts in electric traits, plumbing, heating and air conditioning, flooring, etc.

There are many more details to cover but in the end as the founder, I also need an executive team to lead the company.

To me working with a turnkey provider is a lot like that. I partner with the owners of the Turnkey provider and they keep all the departments that are needed to run a successful business available to find, renovate, sell and manage the properties.

When you compare that to a lot of the other options, like flipping, or BRRR, or separated property management because the property you own is close to home, I wonder if that business/company is going to be as good as a team of experts in the turnkey model?

I know that I rather hire all these experts in the required traits and departments to make the business successful than trying to learn all that’s needed myself. What do you think? And what am I missing in this model of working with the TK provider like the executive team of your business/company?

  • Axel Meierhoefer