Turnkey Companies

[Brandon Statt]

Can anyone make a suggestion on Turnkey companies in the Phoenix, East Valley, AZ area?

Or just point me in the right direction to find them?

Thanks for the thought.

-Brandon

[Mike D'Arrigo]

Originally posted by @Bob E.:

If you are local why use a turnkey company and pay the markup?  There a plenty of good rental in the market, most with tenants in them.

It's natural to assume there is a big mark up on turn key properties, but here are some reasons you don't always save doing it yourself:

* Turn-key companies are buying at much deeper discounts through auctions, tax sales, direct through distressed owners and buying with cash. The average individual trying to save money is buying off the MLS and financing. The MLS isn't where the deals are.

* Turn key companies get large discounts from material and HVAC suppliers that the individual does not.

* Turn key companies can negotiate better rates with their contractors and trades people

* There are no construction overruns or surprises when you buy a turn key property

* There is no tenant lease up fee with a turn key. Tennant is already in place

* A turn key is cash flowing from the day you close rather than costing you money while the renovation is being done and a tenant is being placed. This could be a few months.

There's no question that you pay a premium from some turn key companies but it's real easy to know if you are. If you're financing, the lender will require an appraisal which will determine the market value. If your turn key company doesn't allow an appraisal contingency, then run, don't walk. It means they know the property is overpriced. We sell lots of turn key's in Indianapolis and Kansas City and only once did the appraisal come in below the sale price and not by much.