Turnkey Provider Gimmicks - Do New Investors Care

[Curt Davis]

I feel lately I have been seeing many TK providers here on BP lately pitching their company and properties along with showcasing all the guarantees they are offering for prospective clients who might do business with them.  Here are just a handful of the things I have been seeing:

• No maintenance for 12-24 months
• No tenant placement for 3yrs
• No property management fees for 12-24 months
• Guaranteed rent for 12-24 months
• 1yr home warranty ( either from a company or from the TK provider )
• 1yr all you can eat at McDonald's  ( ok so this is not really one of them )

Now I am also a TK provider and yes at times during negotiations with buyers we have offered to pay some closing cost and a few other little things but that's about it.  I have only really noticed guarantees like this on homes that are cheaper meaning under $70k on average.  One could wonder if there is so much padding in the price to be able to offer this on every sale.  One could also wonder about the quality of the area and what will the experience be after the guarantee phase is over.  I am not an expert in these other markets so this is just my thoughts. 

It all sounds great but I would love to hear what some other investors who buy from TK providers think about the guarantees and if you like it or not or if it makes buying out of state from a TK provider more comfortable.