Any experiences with Omnikey Realty?

Question

I'm putting in an offer on a new construction in-fill single family dwelling in Denison, TX through the turnkey company Omnikey.  I found them through Realwealth Network.  Anyone have experience with them?

Jay Hinrichs · Answer

you can charge whatever you want.. thats the JOY of being an agent.. commissions are negotiable up or down..  as for investing in Texas i think the biggest thing that buy and hold investors miss is the property tax situation and the shock when the property is reassessed and your postiive cash flow just went negative.. then the other issue is foundation and soil  wind and hail..  All these things have happened to me in that market.  Appreciation is the play there in my mind  just like west coast properties..  for residents of Texas the uber high prop tax's are offset somewhat with no state income tax.. but for the CA investor to pay some of the highest income tax in the country then invest where your property tax's are some of the highest in the country.. One just needs to be very careful on your numbers if you really just looking for cash flow..  the money is made in apprecation

Kyle Mccaw · Answer

Denison is a great long term play. We manage a number of properties in the Denison / Sherman area and have found that the market is getting satuated with rentals being rehabbed. It may take a little time for the population growth to catch up. And it will. It is 100% in the path of progress. Omnikey is an honest firm and very active there.

Brett D. · Answer

@Jonathan Oh As far as I've been able to calculate and tell, it comes out as a good deal.  Though a lot of being a long-distance (especially first-time) investor relies on gathering information that you hope is accurate.  I appreciate the insight.

@Kyle Mccaw Thank you for that input.  That gives me a more realistic idea of what to expect.

Brett D. · Answer

I posted about my experience with OmniKey...

https://www.biggerpockets.com/...

Lucia Rushton · Answer

@Al D.  I WISH I could charge 4% for our services. We are a full -service Realtor team with resources for our investors and we educate our clients all the time. I too would be very interested in learning what OmniKey does over and above the rest of us to demand an additional fee.

Jonathan Oh · Answer

I know Real wealth network has a great reputation, but not sure about Omnikey. The key is to focus on the deal. It's a new construction so you'll likely not have as many of the maintenance issues older turnkey properties have. So make sure the numbers pencil out and that the rental demand is strong enough out there. But also make sure you vet them as a PM if they're going to be taking over management duties. This is the part that sucks about most turnkey providers. Hope this helps!

Al D. · Answer

@Ken P. Unfortunately, I had not received additional info from anyone on BP before deciding not to buy in Texas.  (Since then - in the past week - I heard a negative experience about OmniKey from a forum member by a private message.  Because it is not my own experience, I cannot say anything else on this.)

My decision was ruled purely by two mathematical considerations:

1 - Not being a bettor on market appreciation, I invest for cash flow.  For the time-being, DFW - and anywhere else in Texas I (personally) care to invest in - seems to have outpaced rents.

2 - Why should I, as a buyer, potentially pay as much as 1.5% on top of the purchase price in market conditions where the seller is not likely to yield on the listing price or agree to fix certain items my agent/inspector may find?  (Medium DOM where I was interested was ~20 and trending lower, with sale-to-list price above 100%.)

Perhaps if I heard the agent justify the fee to me by explaining that they will negotiate a better price - and how, given today’s market conditions there - I’d see value in paying for that service.  Unfortunately, this was not a potential benefit that was mentioned to me.  Blue tape was mentioned, which I had no idea was “above and beyond” for a good buyers’ agent.

Having just sold a property in a secondary market within days of listing, with multiple offers, for all-cash, for way above asking - and with no contingencies - I’d (politely) laugh at any buyer with blue tape.  Having just faced similar conditions as a buyer for the last 5 of 6 properties I bought since May, I had to pass on the “above and beyond” service for a premium price.

All this math may change tomorrow, of course.  But it is what it is today (earlier this month.)

Ken P. · Answer

@Al D. Did you get enough information from BP or other sources to make a decision regarding investing in Texas via OmniKey?  What decision did you end up making, and what was the deciding factor in that decision?

Al D. · Answer

Can someone who has bought through OmniKey speak to whether you may have had to pay any buyer commission to make up their expected 4% buyer agent commission?

I was about to sign a contract with them, having heard about them through RWN years ago.  The contract calls for a 4% commission to them, 1.5% of which would go to RWN.  Basically, if the seller pays 4% to them, nothing would have to come form the buyer.  If the seller pays less than 4%, the buyer is (contractually) expected to make up the difference.

I then told them that I also heard about them on the GRE podcast - would the fee still be 4%?  The answer was that their fee was always 4%, regardless of any referral fee they may pay - because they do a lot of extra work, “more than your typical buyer’s agent.”

Maybe so, but while the contract expects me to pay a higher-than-typical commission as a buyer, I do not see the buyer’s agent’s additional duties listed in the same contract, besides mentioned “industry standards and laws,” which, I believe, is standard language.

So, I decided to post here.  Maybe the addition expense with this agent is worth it.

In your experience in buying through OmniKey, did you pay any commission as a buyer?  Was your buying experience worth the additional money?

More specifically, the contract calls for 4% commission for any property acquired or sold under the contract.  Looking ahead:

If someone can also speak to having sold a property using OmniKey: what % was your commission?  Did you have any flexibility with it?  Did it matter for the commission whether OmniKey represented you as well as the buyer?

Manas M. · Answer

@Brett Durfee Wondering how was your experience with OmniKey? Did you go through the deal and if yes, how soon the unit was tenanted? I am trying to evaluate a turnkey property in Denison area.

Any experiences with Omnikey Realty?

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