Turn-Key Property Advice Needed

[Raymond Yeung]

I'm looking into purchasing my very first turn-key investment property in Chicago with a company called Profit From Rentals. Does anyone here have any prior experience buying investment properties from this company?

I was looking into hiring a property inspector and one of the inspectors mentioned that my property doesn't have plans/permits for the rehab work that they did on the flip.... Here's the seller's response when I asked about permits and plans:

"It takes two days pull a repair and replace permit. I have rehabbed hundreds or buildings and we don't always pull them for every job. I hope you understand this. There is no way for the city to determine if the work is done by us or someone 10 years ago, etc.... The only thing you will need To worry about is if the property is stopped by a city inspector during the rehab process and issues a stop work order because we didn't pull permits. It is VERY common for 70% or more of rehabs to be done without permits. If you aren't comfortable then let's not proceed forward. Every email you sends indicates fear or uncertainty as well as sprinkles of skepticism, you have asked more questions than any other buyer we have had. I say this genuinely, so don't take this the wrong way, but I would rather not take you on as a client if this how the process is going to be once we close escrow. If you do not trust us as the operator I don't want to proceed forward.

I would rather save us both the trouble and kill the deal now. I already feel like the inspection process is going to make you feel uncomfortable when the results come back and there will be a lot of items we simply won't fix unless you want to pay for them. I will fix the items we feel are important to your long-term success and ensuring the building can last through the duration of your investment life. We know what we are doing, I will leave it at that."

For those who have purchased turn-key properties before, is it normal to have no plans/permits? Would this also put me at risk in case the tenant finds me in a lawsuit and then it's revealed that the work done on my property isn't permitted? I would greatly appreciate any and all input on the company (Profit From Rentals) and the necessity of plans/permits. Thanks in advance for your help!

[George P.]

Originally posted by @Walt Payne:

@Raymond Yeung A lot of people on BP disagree with me on this, but I feel permits matter, regardless of what others do. It is a matter of integrity. If they cut corners on the things you can see, what did they cut corners on that is hidden, or buried.

i really dont want to turn this thread into an argument, but i 100% disagree with you. i think at one point the inspections and permits were helpful to homeowners and had to be set up to prevent crappy contractors from taking advantage of regular joes. now, they barely take a look at what they are inspecting and never answer any questions. they dont give a reason for failure, never give advice to how it should be done. they just have a nasty attitude towards just about anyone and talk to you/me like they are doing you a favor. i had to pay $13 to install a bath fan in a half bath.

correction. the fan was already installed and i had to have my electrician go there and pull a $13 permit. how stupid is that? i was trying to do the right thing and install a fan. i had to pay over $150 for that stupid permit with electrician's fees. at the end of the day, they never even inspected to see if it was wired correctly.