Considering Starting A Turn-Key In Milwaukee

[Account Closed]

I am exploring the possibility of entering the turn-key, rehab and property management space here in Milwaukee. I am currently missing the broker piece, though have the others in place. Anything anyone with experience could offer is appreciated. Like I said, I am just starting the research - call this the napkin. Thanks in advance.

[Rebecca Knox]

Based off speaking with out of state investors on a regular basis on both the buying and SELLING side, the biggest need I see is the investor needs to do their OWN DUE DILIGENCE. Stop believing the ad or the listing or the person or making decisions based off people (like the tenant, who you think the person wholesaling or selling the deal is).  

A few weeks ago, I received a call from an out of state investor with several properties in the worst areas of the city. When he called, the way he pitched his properties was exactly the way he was sold them--I knew exactly who he bought them from before I even looked on public records.  I asked him why didn't he go back to the person who sold the properties to him and ask him to buy them back or wholesale them and he said he did, but the person turned him down and said he couldn't help him. 

He was pitched that these properties were completely rehabbed--nothing needed. When I asked for the scope of work done, it was minor things, replacing tile--caulking--a toilet......nothing about the nitty gritty like the roof, furnace, windows, etc.....the house from the outside looks bad and times that by 10 other properties and you see how situations like these affect our city....but what's even worse is what he paid for these properties. In my opinion he paid at least 40% more than he should have. An out of state investor wholesaled him these properties.....so more or less an out of state investor wholesaled these to another out of state investor in his home state.  Many of these people have never even visited Milwaukee--they may have never even seen their properties---they are just here to collect income. This is one story of many about the out of state investor who becomes mesmerized with the 'hood' dreams people pitch here, compare properties here with what sells in there home state, buys based off the rents or tenants in place at the moment, relies on the person selling them the deal (whether a realtor, PM or wholesaler) and ends up in a pickle all because they were too cheap to pay experts to gather market research or multiple opinions or too lazy to do their own research on where and what they are buying.......If I was an new out of state investor, before I bought the deal, I would just post the basics on BP and ask for feedback.  

I also think there is a need for good property management in Racine as well as Milwaukee hood.