Turnkey Intermediaries and Their Value

[Jerry Hollifield]

What are your thoughts on turnkey intermediaries such as Norada, Hipster, Rent to Retirement?  Do they add value to the process?  

[Joseph Schweizer]

Hi @Jerry Hollifield!

Working with a good reputable turnkey provider can definitely be a good option for some investors. It can be an easier way to set up an OOS team, it can be a good first investment to learn the process, it could be an easier way to utilize larger amounts of capable for investors who do not have the time to manage rehabs, etc.. It is definitely not the right strategy for everyone and obviously comes with its own set of Pros and cons.

Just like any type of investment, you will have to do your due diligence. You need to learn as much as you can about the turnkey providers, the markets, the property you are in interested in, etc.. Also, a common misconception with turnkey is that the process is completely hands off, which is not true. It is definitely more hands off then other types of investments, but it is not 100% hands off. 

I felt like turnkey was a good option for me to make my first RE investment (see post below). I work full-time outside of real estate and I have no background in real estate or construction so turnkey was appealing to me. 

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

Not sure if this answers your question, but thought I would share my thoughts on it.

Best Wishes!