Need help to finish a BRRR after contractor stoped answering calls.

[Stephen Williams]

I have an issue with a home I purchased in Memphis through Midsouth Turnkey.  I was referred to them through Jason Hartman's Network.  The contract signed for the property was a 90 day cosmetic rehab with some distributions paid and now I am getting no phone calls.  I went to Memphis a couple of weeks ago to visit with Kenny Shaw and some of his people and they showed me some of their projects in progress and gave a rundown on mine.  they told me it only needed a week to get it done.  Now it's two weeks later and they are not returning emails or phone calls.  I reached out to my contact with Hartman's team and they spoke with him.  He told them he was going to reach out to me.  No contact and no returned phone calls.  I have a what's app group with him alon gwith others for the property and it shows he has read my messages. 

So at this point, I will be going to Memphis to take custody of the property and try to get it done myself. Is there anyone on here with good references of contractors that can help me out along with the best property managers in the area for me to visit with to determine who I should hand over operations to once the work is done. I haven't fully been setup yet as I have cash but I will be taking out a HELOC to get the rest of the job done. It's definitely putting a wrench in my life which is the primary thing I wanted to avoid.

[Nida Kazmi]

Quote from @Stephen Williams:

I have an issue with a home I purchased in Memphis through Midsouth Turnkey.  I was referred to them through Jason Hartman's Network.  The contract signed for the property was a 90 day cosmetic rehab with some distributions paid and now I am getting no phone calls.  I went to Memphis a couple of weeks ago to visit with Kenny Shaw and some of his people and they showed me some of their projects in progress and gave a rundown on mine.  they told me it only needed a week to get it done.  Now it's two weeks later and they are not returning emails or phone calls.  I reached out to my contact with Hartman's team and they spoke with him.  He told them he was going to reach out to me.  No contact and no returned phone calls.  I have a what's app group with him alon gwith others for the property and it shows he has read my messages. 

So at this point, I will be going to Memphis to take custody of the property and try to get it done myself. Is there anyone on here with good references of contractors that can help me out along with the best property managers in the area for me to visit with to determine who I should hand over operations to once the work is done. I haven't fully been setup yet as I have cash but I will be taking out a HELOC to get the rest of the job done. It's definitely putting a wrench in my life which is the primary thing I wanted to avoid.

Hey, sorry about all this, you're right it is absolutely unacceptable. Reach out to triumph, they've been absolutely fabulous on my other property I bought through crestcore. And by fabulous, I mean their communication is ON POINT about everything, and I'm grateful. Message me privately because I think we can't share links or numbers here. But Lawson will get you taken care of! 

I've also just bought my first property with mid South turnkey, and it just closed. So I'm going to be on top of the rehab. I think mid South has grown without placing the proper personnel infrastructure that they absolutely need to run these projects. 

[Stephen Williams]

Quote from @Nida Kazmi:

Quote from @Stephen Williams:

I have an issue with a home I purchased in Memphis through Midsouth Turnkey.  I was referred to them through Jason Hartman's Network.  The contract signed for the property was a 90 day cosmetic rehab with some distributions paid and now I am getting no phone calls.  I went to Memphis a couple of weeks ago to visit with Kenny Shaw and some of his people and they showed me some of their projects in progress and gave a rundown on mine.  they told me it only needed a week to get it done.  Now it's two weeks later and they are not returning emails or phone calls.  I reached out to my contact with Hartman's team and they spoke with him.  He told them he was going to reach out to me.  No contact and no returned phone calls.  I have a what's app group with him alon gwith others for the property and it shows he has read my messages. 

So at this point, I will be going to Memphis to take custody of the property and try to get it done myself. Is there anyone on here with good references of contractors that can help me out along with the best property managers in the area for me to visit with to determine who I should hand over operations to once the work is done. I haven't fully been setup yet as I have cash but I will be taking out a HELOC to get the rest of the job done. It's definitely putting a wrench in my life which is the primary thing I wanted to avoid.

Hey, sorry about all this, you're right it is absolutely unacceptable. Reach out to triumph, they've been absolutely fabulous on my other property I bought through crestcore. And by fabulous, I mean their communication is ON POINT about everything, and I'm grateful. Message me privately because I think we can't share links or numbers here. But Lawson will get you taken care of! 

I've also just bought my first property with mid South turnkey, and it just closed. So I'm going to be on top of the rehab. I think mid South has grown without placing the proper personnel infrastructure that they absolutely need to run these projects. 

That is what it looks like and it is also what Carrie told me when I spoke with her about it. The best thing you can do is really be on top of them with the draws. I wasn't. They sent the pictures and it looked good but with debris all around but I feel I should've demanded a video walk through before I agreed with a draw. I will message you because I'm trying to find whatever contact I can to make this a quick and painless as possible. I am also looking for a HELOC to not have to pay out of pocket to finish this and just use the equity in the home.

[Taz Zettergren]

@Stephen Williams hate to hear that's the case. Send me a DM I can get you in contact with a general contractor who also owns a PM company. 

[Stephen Williams]

Quote from @Taz Zettergren:

@Stephen Williams hate to hear that's the case. Send me a DM I can get you in contact with a general contractor who also owns a PM company. 

Thanks I sent a DM 

[Jordan Ray]

Quote from @Stephen Williams:

I have an issue with a home I purchased in Memphis through Midsouth Turnkey.  I was referred to them through Jason Hartman's Network.  The contract signed for the property was a 90 day cosmetic rehab with some distributions paid and now I am getting no phone calls.  I went to Memphis a couple of weeks ago to visit with Kenny Shaw and some of his people and they showed me some of their projects in progress and gave a rundown on mine.  they told me it only needed a week to get it done.  Now it's two weeks later and they are not returning emails or phone calls.  I reached out to my contact with Hartman's team and they spoke with him.  He told them he was going to reach out to me.  No contact and no returned phone calls.  I have a what's app group with him alon gwith others for the property and it shows he has read my messages. 

So at this point, I will be going to Memphis to take custody of the property and try to get it done myself. Is there anyone on here with good references of contractors that can help me out along with the best property managers in the area for me to visit with to determine who I should hand over operations to once the work is done. I haven't fully been setup yet as I have cash but I will be taking out a HELOC to get the rest of the job done. It's definitely putting a wrench in my life which is the primary thing I wanted to avoid.

Thats very unfortunate but it happens.. I have a GC I use that does a very good job. I can send you his info if you would like?

[Stephen Williams]

Thanks that will help I’m gaining some contacts and want to reach out to them to see who I would want to work with. 

[Dean Harris]

@Stephen Williams I can help you get connected with a really good GC that specializes in investment proerties here in Memphis. I have personally used them for years on my portfolio

[Nida Kazmi]

Quote from @Dean Harris:

@Stephen Williams I can help you get connected with a really good GC that specializes in investment proerties here in Memphis. I have personally used them for years on my portfolio

 @Dean Harris - I would love that info too please - if its not Triumph (who I had a GREAT experience with), just building my rolodex.

[Stephen Williams]

So I just talked with Kenny. After checking with the power company on the status of the power they said crews have been out and they showed power being used at the residence. After that I was informed by Kenny that the home is complete and ready for move in. He apologized for the lack of communication. Most of the hold up was due to the power company. He said there is no excuse for the lack of communication. I can easily see they are overwhelmed with the heavy demand. 

He said other delays will be the housing office as the prospective tenant is a section 8 tenant. So he asked for my permission to allow the tenant to sign a lease and move in effective Jul 15th and they will cover the rent owed to me until the housing inspection is done and rent is coming from them. He also offered concessions due to the severe delays far beyond the contract that was signed. I feel this is adequate and hope there are not any hiccups past this. So I am canceling my plans to go to Memphis for now as I am busy with work. 

I still need time to decide whether I want to keep going through him or establish relationships with others in the area. I’ve spoken to some promising people up there due to everyone’s help here. Only thing missing now is a wholesaler to find a property for me. 

[Stephen Williams]

I also need to add that this whole thing has been made possible due to the help of Carrie with Jason Hartman’s team. 

It is a reminder of the importance of not going at this alone and working with a network. Thanks again everyone. 

[Engelo Rumora]

Quote from @Stephen Williams:

So I just talked with Kenny. After checking with the power company on the status of the power they said crews have been out and they showed power being used at the residence. After that I was informed by Kenny that the home is complete and ready for move in. He apologized for the lack of communication. Most of the hold up was due to the power company. He said there is no excuse for the lack of communication. I can easily see they are overwhelmed with the heavy demand. 

He said other delays will be the housing office as the prospective tenant is a section 8 tenant. So he asked for my permission to allow the tenant to sign a lease and move in effective Jul 15th and they will cover the rent owed to me until the housing inspection is done and rent is coming from them. He also offered concessions due to the severe delays far beyond the contract that was signed. I feel this is adequate and hope there are not any hiccups past this. So I am canceling my plans to go to Memphis for now as I am busy with work. 

I still need time to decide whether I want to keep going through him or establish relationships with others in the area. I’ve spoken to some promising people up there due to everyone’s help here. Only thing missing now is a wholesaler to find a property for me. 

Hi Stephen,

Sorry for your troubles but it seems like the provider came through in the end which is nice to see.

And promising to cover rent for the delays caused shows character also.

Being a turnkey provider myself since 2014, I can attest to that unfortunately many things sometimes aren't in our control.

Especially when it comes to the citiy, contractors and pulling permits, etc...

Our traditional promise is that the property will take 90 days to rehab and tenant.

Have we gone over 90 days? Yes, many times but then we cover rent until renovated and tenanted.

Have we had an investor loose money on a deal? We sure have and are now doing a deal for this investor where they keep 100% of the profits.

Folks that do their best, will make mistakes (Honest mistakes for those that work with integrity).

We have been thrown under the bus quite a few times on this forum like many others but I sleep peacefully because I know we don't steal, cheat or lie and always do our best for everyone.

Many times things work out well and other times they don't.

Such is real estate and such is life.

I don't think one can be blamed for doing their best.

Upwards and onwards and wishing you all the best

[Stephen Williams]

Quote from @Engelo Rumora:

Quote from @Stephen Williams:

So I just talked with Kenny. After checking with the power company on the status of the power they said crews have been out and they showed power being used at the residence. After that I was informed by Kenny that the home is complete and ready for move in. He apologized for the lack of communication. Most of the hold up was due to the power company. He said there is no excuse for the lack of communication. I can easily see they are overwhelmed with the heavy demand. 

He said other delays will be the housing office as the prospective tenant is a section 8 tenant. So he asked for my permission to allow the tenant to sign a lease and move in effective Jul 15th and they will cover the rent owed to me until the housing inspection is done and rent is coming from them. He also offered concessions due to the severe delays far beyond the contract that was signed. I feel this is adequate and hope there are not any hiccups past this. So I am canceling my plans to go to Memphis for now as I am busy with work. 

I still need time to decide whether I want to keep going through him or establish relationships with others in the area. I’ve spoken to some promising people up there due to everyone’s help here. Only thing missing now is a wholesaler to find a property for me. 

Hi Stephen,

Sorry for your troubles but it seems like the provider came through in the end which is nice to see.

And promising to cover rent for the delays caused shows character also.

Being a turnkey provider myself since 2014, I can attest to that unfortunately many things sometimes aren't in our control.

Especially when it comes to the citiy, contractors and pulling permits, etc...

Our traditional promise is that the property will take 90 days to rehab and tenant.

Have we gone over 90 days? Yes, many times but then we cover rent until renovated and tenanted.

Have we had an investor loose money on a deal? We sure have and are now doing a deal for this investor where they keep 100% of the profits.

Folks that do their best, will make mistakes (Honest mistakes for those with integrity).

We have been thrown under the bus quite a few times on this forum like many others but I sleep peacefully because I know we don't steal, cheat or lie and always do our best for everyone.

Many times things work out well and other times they don't.

Such is real estate and such is life.

Onwards and wishing you all the best

Yes I have to reiterate that I don’t think they were doing anything bad. I was asking for help and explaining the situation while also warning people of potential issues. My biggest issue was the lack of communication which we discussed. I was fully prepared to go to Memphis and take over the project because I was left in the dark. Communication is key.  

[Engelo Rumora]

Quote from @Stephen Williams:

Quote from @Engelo Rumora:

Quote from @Stephen Williams:

So I just talked with Kenny. After checking with the power company on the status of the power they said crews have been out and they showed power being used at the residence. After that I was informed by Kenny that the home is complete and ready for move in. He apologized for the lack of communication. Most of the hold up was due to the power company. He said there is no excuse for the lack of communication. I can easily see they are overwhelmed with the heavy demand. 

He said other delays will be the housing office as the prospective tenant is a section 8 tenant. So he asked for my permission to allow the tenant to sign a lease and move in effective Jul 15th and they will cover the rent owed to me until the housing inspection is done and rent is coming from them. He also offered concessions due to the severe delays far beyond the contract that was signed. I feel this is adequate and hope there are not any hiccups past this. So I am canceling my plans to go to Memphis for now as I am busy with work. 

I still need time to decide whether I want to keep going through him or establish relationships with others in the area. I’ve spoken to some promising people up there due to everyone’s help here. Only thing missing now is a wholesaler to find a property for me. 

Hi Stephen,

Sorry for your troubles but it seems like the provider came through in the end which is nice to see.

And promising to cover rent for the delays caused shows character also.

Being a turnkey provider myself since 2014, I can attest to that unfortunately many things sometimes aren't in our control.

Especially when it comes to the citiy, contractors and pulling permits, etc...

Our traditional promise is that the property will take 90 days to rehab and tenant.

Have we gone over 90 days? Yes, many times but then we cover rent until renovated and tenanted.

Have we had an investor loose money on a deal? We sure have and are now doing a deal for this investor where they keep 100% of the profits.

Folks that do their best, will make mistakes (Honest mistakes for those with integrity).

We have been thrown under the bus quite a few times on this forum like many others but I sleep peacefully because I know we don't steal, cheat or lie and always do our best for everyone.

Many times things work out well and other times they don't.

Such is real estate and such is life.

Onwards and wishing you all the best

Yes I have to reiterate that I don’t think they were doing anything bad. I was asking for help and explaining the situation while also warning people of potential issues. My biggest issue was the lack of communication which we discussed. I was fully prepared to go to Memphis and take over the project because I was left in the dark. Communication is key.  

Agreed. Communication is always key.

Even if things aren't going as planned.

Granted, I have also witnessed many unrealistic expectations and got blasted for "communicating" every nut and bolt to an investor.

So it can be a fine line

[Stephen Williams]

UPDATE:

I have finally reached the point that the property in question has a tenant moved in. It has passed it's housing inspection and the Midsouth Turnkey is footing the bill for the rent until the housing office starts paying. To say this BRRR was a disappointment is an understatement. After 3 delays the appraisal was finally done and it came in $28K short of the ARV that was done when I purchased the property to which a lot can change with appraisals after almost a year of being delayed.

I bought the property 12/1/23 with a 90 day SOW contract.  It is now August so it's been over 9 months.  The only thing that has occurred as sold to me was the amount of rent from the City of Memphis but we don't know if that will possibly change as well.

I know I reached out for points of contact in the area for doing more transactions but at this point I think I'm done.  I do not see myself buying another single family rental.  As far as investing for income and equity I am moving strictly to Syndications.  They have appealed to me since I learned about them and I have learned a lot from Jim Pfiefer and Left Field Investors.  They just announced they were bought out by Bigger Pockets and will be joining the company under the name PassivePockets and I can't wait to continue to learn with them.

Given the required time and number of transactions needed to get the right people for these I do not have the time to do it.  I've had nothing but price gouging and overall terrible service when it has come to dealing with single family homes.

I wanted to say thank you to everyone that reached out and provided their help and I'll hopefully see some of you in the PassivePockets forum.

[Jordan Ray]

Quote from @Stephen Williams:

UPDATE:

I have finally reached the point that the property in question has a tenant moved in. It has passed it's housing inspection and the Midsouth Turnkey is footing the bill for the rent until the housing office starts paying. To say this BRRR was a disappointment is an understatement. After 3 delays the appraisal was finally done and it came in $28K short of the ARV that was done when I purchased the property to which a lot can change with appraisals after almost a year of being delayed.

I bought the property 12/1/23 with a 90 day SOW contract.  It is now August so it's been over 9 months.  The only thing that has occurred as sold to me was the amount of rent from the City of Memphis but we don't know if that will possibly change as well.

I know I reached out for points of contact in the area for doing more transactions but at this point I think I'm done.  I do not see myself buying another single family rental.  As far as investing for income and equity I am moving strictly to Syndications.  They have appealed to me since I learned about them and I have learned a lot from Jim Pfiefer and Left Field Investors.  They just announced they were bought out by Bigger Pockets and will be joining the company under the name PassivePockets and I can't wait to continue to learn with them.

Given the required time and number of transactions needed to get the right people for these I do not have the time to do it.  I've had nothing but price gouging and overall terrible service when it has come to dealing with single family homes.

I wanted to say thank you to everyone that reached out and provided their help and I'll hopefully see some of you in the PassivePockets forum.

I wouldn't quit brother, just learn from it and keep going. I know thats easier said than done, you just need change up your process on how you buy. Happy to help you find better deals and provide you with better comps than what was given previously.