All Forum Posts by: Julie S.

I can see this was posted a while ago, but would still like his info?  Thanks!

A turnkey company delivers a cash flowing (PASSIVE), no to very low maintenance for the first few years at closing– I have others. That’s what the end buyer wants – if the property doesn’t work for the turnkey company, they shouldn’t offer it. See their website, I didn’t experience any of this.

The $60K comes from an email with a picture/address of the property, the price of the property ($55K) and this quote from HRRE to me….

“I’m still trying to lockdown this property, the seller is now hesitating the price.” 

And the following email…..

”The seller backed out then raised the price $5k on me.” 

The end buyer doesn’t need to know this information, but HRRE put it out there and it’s untruthful according to public records. Why do you think they needed to tell me this? Turnkey companies typically don’t give customers this information.

Although the numbers were always changing – Acquisition cost of $44K + his stated costs (above) of $24K = $68K. Sale price was $72K. Where’s their loss- as stated above? My main point is they delivered a poorly rehabbed property and didn’t stand behind their work.

@James Wise – It’s relevant when they won’t fix the problems they created with the property because they continually told me they were over budget.  My point is yes, “shoddy” (your words).

To reference some examples - they put in a new water heater and when my PM went to get the water turned on by the water company – this is what we received from water company…..

WATER

CANNOT HAVE STAB FITTINGS OR PLASTIC PIPE BEFORE METER, 

GAS

HOLE IN CHIMNEY FROM OLD WATER HEATER VENT NEEDS SEALED AND CLEANED OUT DOOR MISSING NEEDS SEALED

I paid to fix it so I could get it turned on and rented. Once the water was on – the ceiling collapse because they didn’t cap off a water pipe during their rehab. Jack blamed it on “frozen pipes”. He had my PM’s phone number, he could contact him at any time. PM was getting paid either way. The plumber said it wasn’t frozen pipes – but Jack would only see it his way (frozen pipes) without actually going to the property. I was to be reimbursed by HRRE – their email, 

“I offered to pick up the bill on that” and “Send me the repair bill and I’ll take care of it."

I sent the repair bill, it was ignored. 

See Jack’s post above - 2nd paragraph – “customer understood UP FRONT that the rehab was not complete.” Then, 4th paragraph, “did not sell property until it was completed”. Which one is it – I’m confused.

When was the property signed off? The inspector left and there were still issues not completed. HRRE has the report.

Not sure what is meant by…”but we have our suspicions”.

The main purpose of my post is to let others know of my experience with this company. I’m not expecting anything out of this company. Everyone can figure out what’s best for them by the responses above. Please feel free to message me.

@Bill Briggs – not surprised…..I’m sure Gary was probably piloting a plane to China and got some type of signal from the clouds that he really needed to put a review on BP (good timing) although he’s not a user of BP. Incredible…..Who believes this?

@Jay Hinrichs - I bought this turnkey property from them for $72K - market price (and rent ready at closing).

They told me they purchased the property for $60K with a $17K rehab, Jack's post above says $13K - yes the numbers changed a lot and don't make sense.  Not sure what they were trying to do - you'd have to ask them.

But actual public records indicates the property was purchased by them for $44K (not $60K).  So, my thoughts are, $44k + $17K (or $13K from Jack's post above - not sure which one is accurate) = $61K (using the higher number).  They made a profit (although they said they didn't) and I'm fine with that but it shouldn't cost me $ when it was in their scope.

@James Wise Thanks for the helpful information.  The company is a full turnkey company.  They buy a property at a discount as it needs work, rehab it and then sell it at market price as rentable at closing.  I did have a home inspector out twice as the water wasn't turned on the first time so had to send him out a second time. My new PM discovered the problems not addressed in the report - they did fix some of them - but not the plumbing issue.  In my opinion, I don't think they had a certified plumber or someone that really knew how to do it correctly hence the leaks.  

I also know they are in the business to make money (so am I) but the items in their "scope" were done poorly which resulted in the problems which they did not fix.  The duplex is in Irvington.  They offered the original purchase price back - I've put too much money into it.  I can sell it on my own.  My comments here were to let others know of my experience with this company.

@Jay Hinrichs - See Jeff's post above - they're a full turnkey company.  Yes, I agree with you regarding the numbers - no money in it for them.  But I wasn't given the accurate information as stated above - which is my point.  Jack's post above referred to his "scope" amount ($13K).  So apparently he thinks it can be done for that amount.  But in actuality, they purchased the property for $44K and the scope amount I received was $17K = $61K total.

@Caleb Heimsoth - great advice.

When I purchased from HRRE, my only contact was with Jack. I never had ANY contact (phone calls or emails) with Jeff.

Regarding the scope of work from a turnkey provider, is it the customers responsibility to make sure their scope is correct? A turnkey provider delivers a rentable property at closing.

A $13,000 scope? Email below…

I think this is the one for you, this will need a $17k rehab so it will come in at $72k

HRRE holding and other costs are figured into the purchase price. I was told numerous times that the property was purchased for $60K while public records indicates it was purchased for $44K – big difference.

Jack recommended the home inspector, a good recommendation, but then commented that he was too thorough and he won’t use him again. As a customer, I want a thorough home inspector.

I did use HRRE’s property manager, secondary, I was told it would be a good fit for me. Unfortunately, that PM didn't marketing the property for rent or fix the issues with the property. So I switched – how long should I wait around? What would you do? Looks like their primary property manager didn’t work out for others either since they are bringing it in house.

HRRE did offer to buy it back at the original purchase price but I let them know that I’ve already put too much money into it. I didn’t “insist” on any price. But I was also told in an email I would be reimbursed for some minor costs, the repair bill was emailed and ignored.

Send me the repair bill and I’ll take care of it.

“We will now only sell properties that are completely done…” I thought I was buying one that was completely done. Indeed a much needed implementation.

HRRE contractors didn’t cap off a water pipe (identified by certified plumber) which caused the ceiling to collapse. Item in their “scope” All PLUMBING AND ELECTRICAL TO CODE. What customer would be happy with that? Their contractors left a hole in the chimney, it had to be fix for the water company to turn the water on. They didn’t install the toilet wax ring/plumbing correctly so water was coming through the ceiling, their “scope” -FRAME AND DRYWALL NEW BATHROOM AND INSTALL ALL HARDWARES, PLUMBING AND ELECTRICAL and other issues (all at my expense). Are the above mentioned items unrealistic expectations on my part? I didn’t need to pay a turnkey company market price and also fix it up. I wasn’t asking for perfect, just rentable.

I purchased from High Return Real Estate and had a problem with this company, their contractors and their property management.  They delivered a house with lots of issues.  They offered a 1 year limited warranty with their property manager that would cover some of the issues for the first year.  Unfortunately, their property management company didn't do anything including taking care of the vacant property or advertising it for rent.  I had no choice but to change to another property management company and then was told of the poor rehab work done by HRRE.  HRRE had to send their contractors out 2-3 times for the same issue which created other issues.   It was very frustrating on both sides with little to no oversight by management.   Jack at HRRE said he would reimburse me for some of the issues but when I emailed him an invoice, it was ignored.  I've spent thousands of dollars getting the property rent ready - from a "turnkey provider".  He resorted to emails only, no phone calls - very difficult to get things resolved.  I realize problems will occur, but it's how the company handles it. 

Great story!  And The 10X Rule is a great book!

The properties Morris Invest sells in Indy are owned by Oceanpointe Investments hence the reason there's not a change in property management. So he's either an owner or has a business arrangement with them.