What is the common commission for turnkey rentals

[Dean Diamant]

Hello everyone,

I'm preparing myself to start investing in real estate, and a relative of mine is willing to fully fund my first turnkey rental for him so he can hold the property. 
So my question is: what would be a fair commission for a work which include finding property, fixing it, and placing a tenant. 

Thank you!

[James Hamling]

@Dean Diamant Your not going to get the straight answer your expecting, because there is no set answer other than "it depends". 

So let's say you find, what you think, is a "great buy". Most often someone as green as yourself justifies this label to a property because the agent told you so. And often that agent "told you so" because you found an equally novice agent who has "as much as" how ever many dozen months of R.E. experience, part time, between there day job, ie "the blind leading the blind". 

So now you bought the goose-egg, and of course found a bunce of GC's who are happy to help fully reno the place, because that's all you looked for, a GC happy to do full scale reno, ignoring all items of at what rate, what speed, what cost controls, what references etc.. Or worse yet, got the cheapest guy of C.L. who said "I can do it, no worries, I gotchya", uh-huh, he sure does "gotchya". 

So at end of day congratulations, you got a property for too much, a reno that took 2x longer then need be at 3x cost could have been, and an investment that's now performing at the wonderful mark of only loosing how ever many hundreds per month. 

So you tell me, as an end buyer, what's that deal worth? 

The answer is ultra simple, what value does a person bring, end of story. It's just that simple. 

And by fact of your question, it's blaringly obvious that your not bring much, if any value at all. If anything your probably a giant liability and expense. Because a person who can bring value, having command on (a) how to recognize a deal (b) getting a deal (c) setting up a proficient team of pro's (d) managing such deal (e) recruiting all the resources necessary (f) pivoting through the stages from acquisition, renovation, monetization (g) tenant placement....... THAT person knows EXACTLY what there value is.        

If you don't know, YOU DON'T KNOW. Meaning, you won't pull it off. 

So end of day what can you do, BE HONEST with both yourself, and this contact. Own where your at, that your not "the guy" to pull this off, not today, not at this knowledge point, BUT you can be his boots on the ground, his proxy, as getting things done and learning the ropes until you can take over things. So starting out, your gonna have to rely on paying Pro's to do all this who DO know, stay close to the process, ask lot's of questions, learn, and work towards taking over those reigns.     Your payment for such, EDUCATION.