Creating my Memphis Team

[Lena Davis]

Hey All,

I initially wanted to start investing in properties using Turnkey Companies but it pains my stomach knowing how much money I am leaving on the table, by doing this. I would like to put together my own team in Memphis, TN to help me find turnkey deals. I need a RE agent and property management company to get started since I am living in CA. Please send me your referrals for this market. Or if you have any suggestions on how to get started I would love to chat. I am pulling this trigger THIS month on a property.

[Luis Rolando]

Hi Lena, here's my perspective for whatever it is worth.  I also live in CA and invest out of state.  I vetted Turnkey companies until I found a couple that met my expectations and are getting great reviews from their customers. Some of the things I looked for are: 

1.) Location/Neighborhoods where the properties are located.  I look for up and coming neighborhoods in cities that have strong economies and are not heavily impacted by a downturn.

2.) Quality of rehab on the property.  There is a balance here.  I don't want top notch luxury features in a rental.  I also don't want crappy work.  I want quality work that attracts tenants and minimizes issues.  Some turnkey companies even give you a 12 month warranty if anything goes wrong with the house.  The idea is to minimize issues that will cost you time and money.

3.) When things go south and it is their fault, how do they respond?  This is more difficult to assess but you can get a sense from reading reviews about the companies.  I don't look for perfection.  Mistakes will happen but if it is their fault, I want them to own it and address it. High level of customer service is what I expect.

When you buy from a Turnkey company, you will pay a bit more for the property and then if they manage it for you, that's 10% off the top.  But .... my point is that I don't look at it as 'leaving money on the table'.  I value my time and peace of mind.  I try to minimize the risk ahead of the purchase and, if that means I pay a little more for the property and for good management, it is worth it to me.  

Of course, that's my personal approach to this - not everyone is comfortable with this approach or have the same risk tolerance.  I hope this helps.  Good luck with your investments.

Luis Rolando