All Forum Posts by: Harry Zhou

I notice that in all of the posts, many say that Aaron is a nice guy, but no one has yet said that they have invested with him. Aaron and all of the people that work with are nice people, but unfortunately, my husband and I have invested with him, and it has turned out to be one of the worst decisions we have ever made. The tenants they put in quite paying rent, then destroy the property, then we have a big rehab bill to get it ready for the next go around. Not to mention the lost rent income during the rehab! We purchased 3 properties and have had trouble with all 3. Wish we would have done a little research, before we invested. :(

Oops, @Dustkin Karns, please share your experience. I was about to push the button until this came out.

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Originally posted by @Joe Kim:

Originally posted by @Kyle Scholnick:

@Joe Kim

Thanks for sharing your experience Joe. The main problem I see with what you mentioned is that although the turnkey companies can buy a distressed property and then sell it to you they seem to be taking all the profit out and selling it to you at the highest possible market rate... Leaving no room for that after repair value equity when the investor buys it since the turnkey company is trying to maximize their profit.

What has your overall experience been in terms of percentage of vacancies, maintenance, capital expenditures, the responsiveness of property management, different insurances needed, lawn care, trash removal?

You do have 7 turnkeys so sounds like you have been happy with your experience, what has your overall return been? is it what the turnkey promised or has it been more in the 6 to 7% range?

Are you going to continue to buy turnkeys? And if not why and what will you be looking into instead?

My best TK properties were all bought at the tail end of the recession at good prices like the example I gave you, 150K purchase price (worth at least 170K at the time of purchase), now worth 200K+ in 1 year with rents at 1775/month.

During the recession 2009-2013, you could buy at discounted prices from GOOD turnkey providers. Now, even the "good" turnkey providers have a hard time selling the rehabbed properties below market rates.

Currently, my 4 properties have experienced ZERO vacancies for 2 years running. While that has been a different story in Indianapolis. My memphis property is doing ok with a 2 year lease in place.

My plan is to stop TK purchases for at least next 1-2 years and see where the market goes.

Looking for the next recession or the next "virgin" market (not overrun by investors).

Exactly, I plan to hold cash for the next recession unless I can find a reliable partner.

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@Petra M.

@Kyle Scholnick

Again, great post. It doesn't sound like a bad idea if people like us (good income, not beginner but limited time to rehab/acquire etc) share some information. E.g., we can create and maintain a blacklist and goto list for TKs. Also if we buy in bulk (each buy one), we have more power in bargaining.

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@Brad B.

Please enlighten me about the "a little education and networking" you mentioned. Let's say the turnkey provider gives us a mediocre 8% cash on cash. I am all ears.

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@Perry Z.

If you go to a couple of the real estate meetups, you'll know if there's anything in that price range, 10+ people from the meetups will jump on it, with cash...

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Great post. I enjoyed reading @Jay Hinrichs comments. A quick and dumb question here: if someone has quite some cash but almost no time, is turnkey one of the best investment avenues. I was following at CC/memphisinvest you mentioned and couldn't find many listings at 1%(rule) not to mention 2%.

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what seller? wholeseller?

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It was a great meetup tonight

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All Forum Posts by: Harry Zhou

Harry Zhou has started 15 posts and replied 93 times.

Post: Team recommendations for Gwinnett and Forsyth counties, GA

Post: Vetting turnkey company in Indianapolis

Post: Vetting turnkey company in Indianapolis

Post: Does Anyone Own ALL turnkey??

Post: Does Anyone Own ALL turnkey??

Post: Does Anyone Own ALL turnkey??

Post: Affordable real estate properties (<200k) near bay area (< 2hour drive)

Post: Does Anyone Own ALL turnkey??

Post: First ever meeting with a seller COMPLETED!!!!

Post: Meetup