Is there still a Stigma behind Turnkey Real Estate Investing?

[Dominique Osborn]

Greetings BiggerPockets community!

As a turnkey real estate investor and owner of a property management company, I witness a persistent misunderstanding around turnkey investments. Many investors attempt to handle everything on their own, underestimating the importance of having a reliable on-the-ground team.

I receive daily calls from out-of-state investors who've experienced losses trying to learn a new market, find good deals, manage contractors, and oversee properties from thousands of miles away. I've heard numerous horror stories just this week that prompted my post here... This approach seems to be leading many investors to financial setbacks and unnecessary stress, and an overall pretty traumatic experience. 

The truth is, while turnkey real estate provides a streamlined investment process, success depends on assembling a capable local team. A reputable turnkey provider, with a strong on-the-ground presence, can guide you through the intricacies of the local market, ensuring smoother operations and better returns.

So this has made me wonder, why the recent influx of calls from out of state investors-- seeking to do it all on there own?  I recall back when we started Ohio Cashflow in 2013-- as a turnkey provider-- @Engelo Rumora and I had a brutal time building up our reputation as there was such a bad rep around turnkey operators. So i'm curious, are investors still being burnt by turnkey operators and that is why they are seeking to do it themselves, without an established team on ground? Does the risk of finding one reputable turnkey operator out-way that of; self learning a market, sourcing a good agent, title company, contractors, and management company? 

What has been your experience with managing remote real estate investments? Have you found success with managing your own curated local team?