All Forum Posts by: Jonathan Oh

@Dwight Bush

There are a bunch of turnkey providers that offer fully rehabbed properties with tenants. Whoever you choose, do you DD on them.

It depends on what your goals are. Majority of turnkey buyers are investors who are mostly looking for a place to put their cash. These are usually busy professionals who already have a great career and has no interest in spending the necessary time to build teams, analyze deals, manage rehabs, etc. Expect to pay at or above market price with turnkeys. You won't have much equity day 1, but you will have cashflow. If you're limited on cash and want to expand quickly, turnkey is probably not the right vehicle. If that is the case, get educated, practice analyzing deals, and build your networks. Research different markets and zone in on one. Expect to make a ton of calls to agents, lenders, and property managers in that market. Get familiar with the neighborhoods, look at the macros, and connect with other investors in the area and see what they are doing. I am sure you'll here this over and over, but the most important thing you need is a great team. Hope this helps.

@Charlotte Kelso

BRRRRing is a great strategy to build wealth quickly. But it is very time consuming and risky. If you intend on eventually being a full-time investor, I think you should go for it. You gotta learn eventually. Turnkeys are a great way to get started for a beginner as well. You just won't get the experience of finding deals, understanding ARVs, rehabbing, etc. But you will get the experience of analyzing numbers and dealing with PMs and tenants. If you're looking to build equity quick, turnkey is probably one of the worst routes you can go. Everything comes with pros and cons. Only you can decide which is best for you.

@Victor Rolon

If you're looking for something that will get you capital in a few years, turnkey is probably not the best vehicle to get there. Turnkey is a passive and long-term play. Like @James Wise said, its best for people looking to park some cash and see consistent cashflow coming in. From what is sounds like, it seems like you are planning on being much more involved than a typical turnkey investor. If that is case I'd look into BRRRRing or partnering with someone. If you have limited capital, you'll prob want to reach out to some lenders that'll be willing to work with you. Things are quite competitive in this market so expect to make a lot of calls. But before you do any of that, write down what your goals are. Make sure every decision you make is sticking to that course. 

@Kevin Zhang

I wouldn't go all in into a particular investment. Doesn't sound like you are a full-time investor, so putting 300-400k all into BRRRs will create a TON of work and risk for you. I personally would diversify - turnkeys, syndications, and other asset classes as well. But take all our comments with a grain of salt. We all have our own goals and ideas, but you need to come up with your own.

@Jose Gonzalez

#1 - Make sure you find an agent who understands investments

#2 - Research the market. Know where the good neighborhoods with strong rental demand are. The agent and property manager should be able to help you with this.

#3 - Make sure you cashflow and set aside proper reserves

#4 - Make sure you get a good appraiser and inspector

#5 - Research and get referrals for property managers

You should be fine if you are doing the 5 steps above. Obviously there is more nuances to consider, but if you slack off in any of those steps you are taking on some serious risk. You're never going to be 100% confident walking into your 1st deal. Like everyone is saying, you have to take the leap. Don't be like thousands of others who "wait" for the perfect one and never take the jump.

@Liz Ellis I would reach out to property management companies and see what they think of the the property. They will have the best idea on how much rents will go for.

@Michael Hudelson If you're looking for value add opportunities, I got a solid agent to source you deals. If you're looking for properties that are rent-ready, then I'd look into turnkeys and focus on find solid property managers. Most turnkeys will take over management after sale, but keep in mind that they may not be the best managers in the market. Best of luck!

Was your ARV coming in at around what they were charging? If so, seems normal. It's the whole turnkey business model. They are in the business of rehabbing and capturing that forced equity. There just happens to be a lot of investors that are fine with purchasing at premium price as long as they are seeing the cashflow they like. Its a win-win. Sure turnkey companies may be winning bigger, but its nevertheless a win-win.

@Jarrod Frankum Congrats! Great to hear you taste success so quickly.