All Forum Posts by: Abdul Azeez

Caleb - I am talking to them currently but have not yet invested with them. I think they are a very professional firm based on my conversations but my concerns are the following:

1. They are very clear that there is an equal likelihood that your appraisal can come in lower than list price. While they say the appraisal is one person's opinion, that one person's opinion is what is going into the bank loan and I would consider it to be the market value. This is very concerning for me because I know you don't have built in equity going in with a TK provided but it the appraisal is lesser, are you not going in with negative equity which can only bite you in the back when you sell? Also, if this does happen, your down payment would need to be more. 

2. Property management fee is around 10% and 1 month charge for getting a tenant in or between tenants. It goes down to 9% when you have 5 or more with them. I think this may be ok.

3. There is no tenant placement guarantee. When I look at other TK providers, they guarantee a tenant in the door when the property closes or a minimum period after that during which if the tenant is not placed, there are some recourse. I do understand their vacancy rates are around 4% but is something to think about as to what happens if you buy a property that is unable to have a tenant placed for say two months.

4. I would ideally like to shop around for a mortgage lender but since they have existing relationships, I am not sure if I will have the chance to shop around for rates or if the lender who I work with would take me for a ride.

5. I am yet to see listings but my understanding is that due to the extent of rehab they do, the prices of the properties are much higher. I would be able to comment on this after I have a chance to see listings.

Just my 2 cents.

Regards.

My issue is the following. I am not an experienced investor and have been priced out of my local market in NJ. I want to invest but finding a good turnkey provided has been challenging. The issues I am encountering are no one other than the turnkey providers or affiliates of them seem to provide any references to good ones. As an example, I have talked to three providers - padeals, Norada and Memphisinvest as a preliminary conversation and I have asked for some references on one of them but have not received even one. Additionally, other issues like exit strategy are concerning me quite a bit because in a market like Memphis, let's say I take advantage of the good prices and invest, how do I get out if things go south if most people are renters?

I am really surprised that not one member has had the time to respond to me. Part of the reason for people to be on sites like biggerpockets.com is to learn and grow with each other and one of the important contributors to that is providing a response when someone new needs information to guide them through the process. I am absolutely surprised that I don't have one response.

Anyone?

Folks - I have just started talking to padeals for turnkey investment opportunities. I would appreciate if you can let me know if you have worked with them and how the experience has been. They seem very legitimate. If you are unable to reply here please feel free to PM me.

Thanks Ali. I will reach out to you.

Folks - can I have more inputs please preferably from investors who have worked with turnkey providers?

Folks - I am looking for turnkey providers outside NJ where I live to buy good value properties that can be managed with a property management company that charges reasonably and provides me a cash on cash return around 12% with $200 - $300 cash flow per month. I have scoured through hundreds of MLS deals in NJ and most often that not one of the variables - asking price, property tax, rental value or HOA if property is a condo skews the metric up so that cash flow numbers are pretty poor. Can anyone advise out of state providers who operate in this area? I came across padeals and am going to talk to them but am interested in knowing of other outfits that provide a similar service.

Folks - there are around 6 properties I am interested in. I have done APOD calculations and projected out to 10 years based on Frank Gallinelli's book. I find that the max offer price on these properties for a positive cash flow is significantly below the list price 7 to 13 percent across the 6 properties. Should I ask agent to present the offer with my max number knowing fully well that the seller may not like it or just wait on the sidelines crunching numbers on more deals? The advantage of presenting offers in my opinion is you never know if seller might decline, present a counter or accept and it will be good to find out.

Can someone point me to the renovation worksheet?

@ Christina macmanaway - if the contractor gave the right estimate there is a higher probability of getting selected. How is this different from a job interview where there are a pool of applicants and the best gets selected? By your logic going to job interviews should also not be done unless you are assured of a job.