Turn-Key REI Companies

[Gregory McKinley]

Hello,

I am new to real estate investing. During my research, I came across Turn-Key Investing Companies. Specifically HomeUnion, Norada, and Maverick. I am pondering on using one of these vehicles as my very first investment into the real estate world. Does anyone have any feedback or experience using one of these companies? Based on my research I am leaning towards going with Norada. I have read the best feedback with this firm. Any input would help greatly.

Thanks,

[Chris Clothier]

Originally posted by @Gregory McKinley:

Hello,

I am new to real estate investing. During my research, I came across Turn-Key Investing Companies. Specifically HomeUnion, Norada, and Maverick. I am pondering on using one of these vehicles as my very first investment into the real estate world. Does anyone have any feedback or experience using one of these companies? Based on my research I am leaning towards going with Norada. I have read the best feedback with this firm. Any input would help greatly.

Thanks,

 Hey Greg, welcome to BP!  You have found a great starting point for your research.  Let me know if you need any assistance or have questions about navigating the site.

As for your question, the three companies you listed all operate a little bit differently, so they can't be painted with the same brush.  However, none of these companies are a Turnkey provider.  Meaning, they are not personally buying every property and paying for the renovations and then operating a management company to manage those properties for an investor.  That is what a true turnkey provider does.

These particular companies are referred to as promoters.  They match investment buyers with investment companies and collect fees when buyers close.  You'll have to get with each of them to find out how they get their fee, but to dumb it down, a turnkey company sells properties to investors and a turnkey provider sells investors to companies.

That is not to say these companies do not have demand or provide a service.  I know the owners of each of them.  Like the Turnkey industry itself, there are good companies and there are bad companies.  Do your homework on the companies themselves and understand how they each operate.

Then, take the advice given above and do your due diligence on the actual Turnkey companies - the providers, before you buy any property.  

Remember, a company that gets paid when they deliver a qualified and closed buyer, potentially has a huge conflict of interest.  Some Turnkey promoters are better than others about only working with high quality TK companies and avoiding the conflict of simply doing business with a company because they can get paid.  

With that being said, you've picked a couple of good companies to speak with as far as learning how these companies operate and its a good jumping off point as you get started researching.  Hopefully that helps ~ Best of luck!