Who are the best turnkey providers?

Question

I am in California and new to out of state investing and looking to get started with a turnkey property for my first buy and hold property. I’m connected with Memphis Investment Properties but who are some other turnkey providers you’d recommend? I’m looking primarily in the Midwest but open to other areas. My price range for a SFH is $90k - $120k.

James Wise · Answer

The house and market are more important than who you buy from. Turnkey is a marketing thing. Any house with a property manager and a tenant is turnkey. Buy right, get an inspection, appraisal and PM and you're good to go.

Follow the punch list below and you're going to be way ahead of the curve on mitigating risks.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

Jacob Klostermeier · Answer

Hey Jacob,

I currently invest with MidSouthHomeBuyers in Memphis and they're great.  However, their waitlist is approximately 10 months long so it can take awhile to build up your portfolio.  I realize the risks with so called "turnkey" providers so I make sure to vet them out thoroughly prior to engaging with them.  One podcaster that talks with a lot of providers and has a nice list of his approved turnkey providers is Keith Weinhold with Get Rich Education.  Not to steal any thunder from BP, but GRE is another top podcast to follow if you're interested in becoming a real estate investor.  Keith has an awesome list of providers that are worth looking into if you're interested.  Here's a link;  https://www.greturnkey.com/

Good luck!

-Jake

Jacob Paulson · Answer

Hi Paul. Thanks for your input. I’ll be sure to do my research before I jump into a deal. I mainly want to see and experience the buying process from afar before I start building my team. Turnkey for that reason makes sense to me for the first 1-2 properties.

Patrick Britton · Answer

@Jacob Paulson  speak with Mark Ainley with GC realty & development.  @Mark Ainley

Paul Shannon · Answer

I don't promote turnkey.  Make sure you do your due diligence on the property, and the operator.  Who did the work?  Quality level, permits pulled, was it lipstick on a pig, etc?

You can count on overstated pro-forma returns.  just know by how much, so you can actually make money and not buy a headache.

Account Closed · Answer

We do turnkeys but I think we would be outside of your budget. Might have some other opportunities though.

Joseph Schweizer · Answer

Hi @Jacob Paulson!

I made my first RE investment in October 2020 working with a turnkey company (See post below). My experience so far has been excellent! As others have already mentioned, two of the most important things is to make sure you do your due diligence on the turnkey provider/promoter and your due diligence on the property itself.

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

Best Wishes!

Sarah Moseley · Answer

I just listened to episode 319 of the BP podcast, and I really liked what the guest, Nathan Brooks had to say about developing his turnkey company, https://bridgeturnkey.com/.  They seem to operate in your price range in MO and Kansas City.

Jacob Paulson · Answer

Jake, that’s a great strategy. Stay in touch.

Jacob Klostermeier · Answer

And Jacob - I do invest in my own backyard as well.  I currently owner-occupy one side of my duplex in Anacortes, WA and rent the other side out.  It's a pricy market here so we're going the house hack route with owner-occupy financing.  Once we've finished our rehabs on the duplex we plan on rolling into another multifamily property (or single family with some meat on the bone so to speak) utilizing owner-occupy financing again.

Who are the best turnkey providers?

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