All Forum Posts by: Grant Anderson

@Grant Anderson

While investing via Turnkey Rentals sounds easy, you should understand that you will be paying full retail, often even more, for the properties.

Why? The Turnkey provider is looking to maximize their profits!

Also, there are numerous challenges in dealing with Turnkey providers:

1) Terrible renovation work - we've taken over many properties that investors bought turnkey and they were shocked to learn the true condition of their property from our TakeOver video.
---So, get a GREAT property inspector NOT recommended by the turnkey company to avoid bias.

2) Misrepresenting Property Class - have seen many turnkey providers in Metro Detroit area sell OOS investors Class C properties as Class B.
---So, learn the neighborhoods where you plan to invest and use Google Streetview to virtually explore them.

3) Poor Tenant Screening - they typically can't sell a property until they place a tenant. So, they have a conflict of interest in waiting for the right tenant.
---So, insist on them providing the rental application and supporting docs for your review. This means YOU need to learn how to evaluate a rental application!

4) Poor Property Management - Where do you think a turnkey provider will put their best staff, on selling properties and making $5k+/transaction or on property management and making $80/month transactions?
---So, ask about their standard operating procedures and make sure your management contract has an easy termination clause.

What are your options if you experience one of the above? Everyone thinks they can sue to solve the problem.

Do you realize how much it will cost to hire an OOS attorney to sue the turnkey company?

Unfortunately, the majority of investors that experience terrible service from turnkey companies, figure out that it's not worth spending tens of thousands of dollars suing their turnkey provider and just move on - which allows the turnkey provider to not change their ways and stay in business:(

You should also check out this BP thread about the topic:

https://www.biggerpockets.com/forums/88/topics/976647-turnkey-company-suggestion?highlight_post=5648876&page=1#p5648876

Hi @Grant Anderson what’s the service you want to get from these turn key company? Sourcing deals, guide you to closing and later manage repair/rehab then lease out and manage? A good agent can do these as well. Is there something else you want to find in this turn key companies? 

I'm a fan of Rent to Retirement but I don't recall any Atlanta or Georgia property recently. If you're willing to expand your search outside of there they may be worth a look for you.  

@Grant Anderson, since working as an investor-focused real estate agent in metro ATL, I have honestly yet to meet and connect with any reliable turnkey companies. As others have noted above, you need to find and work with an agent whose business is predominantly dealing in investment transactions. Moreover, on-market turnkey rentals that cash flow on day one are often hard to come by because of the price-to-rent ratio. If you're buying a turnkey investment in the surrounding ATL markets, it should be looked upon from an appreciation perspective with the likelihood of future rent growth. If you have any additional real estate-related or ATL market-specific questions feel free to reach me via cell or email (contact info is listed in my bio). 

@Grant Anderson yeah, this is exactly what a real estate agent is used for.  They can show you all you want to see and they are free for you to use them.

Not interested in Indianapolis, already have my team there. Do you know a turn key provider in Atlanta area?

 Any interest in Indianapolis?  Feel free to reach out to see what is in our pipeline

Any reason why you are only considering ATL? Panama City Beach is a short, direct flight away, and we have LOADS of great, turnkey STRable properties. You didn't specify "STR", so I am assuming.