Investment companies scam?

Question

From my preliminary research into investing in real estate, I am not able to determine if these investment companies are worth it.  What I’m talking about are the companies that do all the work for you and you hand over 40-50k for them to find the deal, hire contractors, and manage the property so you can be hands off.  In general does anyone know how much it costs for their service?  Do they just take half the profits or charge an additional fee up front?  Mostly I want to know if all said and done is it even worth it.  Thanks

Joseph Crunkilton · Answer

@Sean Stadler

If you're looking for low risk REI, check out @Scott Lundgren and Rent to Retirement. They provide quality turnkey rentals in markets with strong returns. I've used them and can vouch for their credibility and expertise.

Joseph Schweizer · Answer

@Sean Stadler

Yes! There are numerous reputable turnkey providers/promoters. Turnkeys can be a good investment strategy for some people depending on the investors goals and resources.

As @Daniel McNulty said, you would have to research specific companies and do your due diligence if you are considering a specific provider. Searching for providers/promoters in the forums will yield plenty of results.

I have worked with a turnkey provider for my first investment (detailed in my post below). I would be happy to share my experience if you are interested.

https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

Best Wishes!

Joseph Schweizer · Answer

Hi @Sean Stadler!

Are you talking about turnkey companies?

Sean Stadler · Answer

@Joseph Crunkilton thank you I’ll check them out

Sean Stadler · Answer

@Joseph Schweizer yes.  Does anyone have any insight on wether they are a good investment or not?

Daniel McNulty · Answer

@Sean Stadler

The short answer is it depends. Depends on which property they offer you, their services / quality, price, etc.

You may be better off searching the forums for the specific turkey provider you are referring to.

Sean Stadler · Answer

@Joseph Schweizer thank you for the reply.  I will do more research and look into your recommendation

Investment companies scam?

Most Popular Reply