Good TurnKey provides and positive experiences?

Question

Hi All, I am new to real estate investing and looking to buy my first rental. I am considering buying a Turnkey property. How do I find out good Turnkey providers as most of them always have "mixed reviews" online. This is my first post, not sure if I can ask per BP policy, but could you please refer me good providers with whom you had positive experience in the past?

Joseph Crunkilton · Answer

Account Closed

If you're looking for a TK provider with good reviews, check out @Zach Lemaster over at Rent to Retirement. They sell turnkey rentals in market that maximize cash flow and appreciation. You can find Zach's references and reviews on his BP page.

I recently closed on a property with them. They provided me an affordable rental, in a good market and I'm seeing good returns so far. I'm happy to elaborate if you want to PM me.

Zach Lemaster · Answer

@Joseph Crunkilton Thank you for the shout out!

Account Closed

We've helped many investors just like yourself build a successful rental portfolio across numerous cash flow markets.  It's all a numbers game, and the most successful investors invest in the markets where they get the best returns!

Please let me know if you have any questions on anything. I typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer. Please let me know if this is something you would like to schedule.

Also for your reference, here are some other forum discussions from investors that have worked with us in the past like Joseph. I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experienceshttps://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

https://www.biggerpockets.com/users/ZacharyCole/referenceshttps://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkeyhttps://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zachhttps://www.biggerpockets.com/users/ZacharyCole/references

Johnny Wolff · Answer

Because if someone sells you something, you ideally want that same person to be on the hook to repair it when it breaks.  If they aren't going to partner with you long-term then there is a risk they offload a subpar product and then bounce.  Means their interests don't align with yours.

Tom Ott · Answer

If the Turnkey Provider is just going to push you off on their "trusted partner" then they kind of are just acting as an agent. Yes, I agree, you want to be able to home someone accountable is 3 months in you are experiencing a problem. All of a sudden the TK provider may not be picking up the phone for you. Management is the true relationship.

Tom Ott · Answer

I would first decide on am market where you want to invest. From there, look for a Turnkey provider that is local. The key is that they need to do everything in-house. They should own the property first (not just be an agent) renovate it in-house, place a tenant, and then stay on as the manager after you purchase it. They should not use third-party management at all. Everything should be passive and in-house.

Good luck!

Mike D'Arrigo · Answer

Account Closed like in any business, there are good turn key companies and bad ones. Fortunately, there are several good ones here on BP. I've heard a  lot of horror stories about other turn key companies from our clients and there are always recurring themes but in general, the ones to avoid are the ones that:

• Don't allow      financing or a finance contingency (it can be a good indication they are      selling above market value)
• Don't allow      for your own independent property inspection
• Are not      realistic with their pro forma's (i.e. they don't include vacancy or      maintenance projections or use unrealistically low vacancy factors)
• Require you      to pay for any renovation upfront
• Sell only in      cheap. low end neighborhoods
• Don't      accurately represent the neighborhood/property classification
• Don't have      consistent rehab standards for all properties
• Don't      provide a scope of work for the property
• Can't      provide references of repeat investors
• Require you      to close before a tenant is in place

Account Closed · Answer

Thanks all for your replies as well as directly connecting with me offline as well.

Michael Bangsal · Answer

@Tom Ott

Why do you suggest turn key providers not use third-party management?

Good TurnKey provides and positive experiences?

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