All Forum Posts by: Larry Fried

@Michelle Truong My first bit of advice is to avoid the price range you gave.  For turnkey properties go a little higher, to what will get you $900 plus in rent (I actually prefer $1,000 plus).  In most markets these days that is going to mean $85k or more for turnkey.  The reason is that the price range you outlined is likely to put you in C or worse areas and those can be very difficult to manage effectively.  You want to leave those for local investors.

I don't really have anyone to recommend, as it sounds like you are operating in challenging areas/properties.

 Hi Karthi,

I didn't receive your colleague request, but sent one to you, along with the info you requested.

@David Lucas Are you SFR properties above or below $1,000 rent?

Probably the top turnkey provider in the country, Memphis Invest, also operates in Houston.

Hi @Nicole Benton and welcome to BP!  I think both those markets are good midwest markets for investors.  However, the competition for properties in the better neighborhoods has grown quite fierce and it is all to easy for OOS investors to get duped into paying too much for a property and/or not getting what they were led to believe.  Make sure you visit the area and build a team (or pick one, such as turnkey) to work with very wisely and cautiously.

Looks nice, and congrats on the quick sale.  Can you break down your investment a little further.  You bought wholesale but only invested $45k, that suggest you had some financial backing.  What kind of financing did you use?  Also how much did you spend on the renovation?  How long did the renovation take?

I am looking at converting a rental to a retail flip in the same zip code.  The house is just a little bigger than this one and is a 4/2, but I don't think the neighborhood would support a price as high as you got for this property.

@Stanley Nguyen There are any number of existing turnkey companies that could be considered ready made teams providing properties that are fully rehabbed as well as ongoing property management (sometimes as third party).  When considering working with any of these teams you have to thoroughly vet the companies and the people behind them.  In my view, that should include a visit to the area and tour with the provider.  Meet them, see what neighborhoods they are investing in, check out their rehab quality, and most important of all vet their property management.

I started my out of state REI with turnkey companies back in 2012. The ones I actually closed on have worked out well over the years, but have also seen some real stinkers along the way, which I didn't buy from. Buying turnkey today is much more challenging as prices have gone up considerably, while rents don't keep pace. You have to be very careful about who you choose to work and vet thoroughly. Make sure you have realistic numbers and vet the companies (and those behind them) you are considering thoroughly. In my view that should include a visit to the market and an on the ground visit with the provider if at all possible.

Keep in mind, that when you invest in real estate from a retirement account, that you can not be personally actively engaged in the business - ie: you can't self-manage, you can't spend money on repairs from your personal funds (must be from the same IRA; you can't hire contractors. In other words, it needs to be a totally passive investment. Investing in turnkey with management in place may work, but it isn't the most passive REI. I suggest you consider private lending or investing in crowdfunding or syndication, where your Roth IRA is a Limited Partner. These methods of REI provide solid walls of passivity. You can read an BP article I wrote some time ago about Three Key Routes for Passive Real Estate Investing All best in your REI