Experiences in Roofstock, Doorvest, Norada, or other "Turnkey" solutions

[Jaden Jung]

Hi BP Community,

I work full-time and am interested in some of these turnkey solutions I see online that almost seem like one-stop-shop and hassle-free. It seems to be a good way to diversify my investment portfolio if the numbers make sense compared to other asset class options.

I can't buy in my current market, so I'm looking for more affordable options out of state.

I was curious about people's experiences using turnkey real estate investing solutions, and if anyone recommends a different tool.

Thanks!

[Becca F.]

I don't know anything about Roofstock or Doorvest. As far as Norada, do a search on BP and read who's commented on Norada Capital - it's not good and be very cautious. 

I communicated with turnkey providers in Memphis and one that has properties in Cleveland, Detroit and St. Louis. I didn't go with those markets since I know nothing about them and it would have taken months of research on those cities and neighborhoods. Turnkey providers can range from terrible to great. 

I invest in California and the Indianapolis metro area. I used to live in the Indy area so I was familiar with the city and much more so now down to a detailed level. I've posted many times about my experience with OOS. I know many people who have lost money from buying low priced "cash flow on paper" Class C properties (myself included). I recommend Class A or B, not Class C if you're going to buy OOS and fly out to the area

Anytime a  turnkey provider, wholesaler, seller, agent etc that shows you a spreadsheet number with cash flow, appreciation, repairs, capital expenses etc those are ideal scenarios. I would add on more for cap ex and repairs. A renovated older house can pass inspection but once someone is living in it and putting daily stress on the house, there will be repair issues. Research the information provided, maybe talk to local experienced investors (someone unbiased not trying to sell you anything). 

A cautionary note: any time someone says real estate investing is "hassle free",  "it meets the 1% rule", do lots of research. Many investors benefited from the huge run up in values from 2018-2022. It's a different scenario in 2024 with high prices and 7% interest rates. 

I don't mean to rain on your parade but I just want to paint a realistic picture - you can make money and lose money in RE.