Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Kathy Fettke

Kathy Fettke has started 6 posts and replied 94 times.

Post: kathy fettke real wealth network

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

Thank you @Will Zena! It was so wonderful to meet you and all the people who flew in for that event. 

I am so happy to share that the next day, we held a mastermind for all 15 of the top turnkey income property providers in the country. We asked them to share their best practices with each other so everyone could improve their systems. We also asked that they adopt the same policies - instead of some companies having warranties and others not, and some having rental guarantees and others not, etc. And mostly, to agree on what a "turnkey" renovation should include. 

They loved having support and learning from each other - and standardizing their processes. We will do this at least twice a year. Our Director of Affiliates works closely on a regular basis with each company to help them improve their systems. I just went to Detroit to see a turnkey company we recommend - and they have improved dramatically from this coaching.

Sometimes it feels like the wild wild west out there, but we are working hard to get these companies to become the best they can be to better serve investors looking for cash flow. Here's a pic of these "competitors" working together. Very exciting!

Post: Turnkey brokers (Jason Hartman and Real Wealth Network)

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

Hi all, I just ran across this thread.  

@Jeff Macdonald @brand You are so right. There are so many people and companies who call their properties "turnkey" but in reality, they are nothing more than lipstick on a pig, and sometimes, not even that good. In the 15 years I've been running Real Wealth Network, I have run into more sharks and sociopaths than I care to admit - people who will gladly rip off a new investor for personal gain. But several years ago we hired a Six Sigma Black Belt to put these turnkey teams through the test. We created R.E.A.L. turnkey standards so that buyers would know what they are getting, and be able to verify through inspections and appraisals.

@Dani Beit-Or Nice to see you here! It's may appear that an out of state investor could get a better deal by doing it themselves. But what about the costs of flying to the area repeatedly, staying in hotels, finding a team, managing the contractors, etc. Many of our members have told us that in the end, it's been much cheaper to buy through our certified R.E.A.L. turnkey teams than doing it themselves. The local companies get discounts on labor and materials and have systems in place to keep costs down. 

Sure, if you are a local professional, you can get property cheaper and fix it yourself. But the same could be said of an auto mechanic. He can do his repairs for less than I could, but I'd rather not do that, and let's be honest, it wouldn't go well if I did it. I'd rather hand it to a pro. :-)

Real Wealth Network members, like @Jeff Macdonald are forced to rely on other people if they are going to buy out of state - especially if they already have full time jobs! But that's good, because it makes it a real business. Business owners don't do the work themselves - they hire good people who are better at the job than they are. That's what makes it truly passive.

Post: Out of State Turnkey Investing w/ Kathy Fettke (BP Podcast Guest)

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

Looking forward to it! I'll bring lots of good data on the best markets for cash flow today, and where you can expect slow and steady appreciation as well. I'll also answer questions about where we are in the market cycle and if housing has hit a peak or not. See you there! And let me know if there's any topics you'd like to cover specifically. :-)

Post: What are the best markets for cash flowing rental properties?

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

Best Markets for Cash Flow Properties Today:

#1 - Detroit

#2 - Cleveland

#3 - Birmingham or Huntsville

#4 - Pittsburgh

#5 - New Jersey

#6 - Kansas City

Hands down, these are the markets where you can still get double digit returns - for a limited time, as prices are going up!

Post: Texas Turnkey Properties in Houston

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

@Rosemary Cubbage, hundreds of Real Wealth members have worked with TTK and we have not received a single complaint - except for lack of inventory. We reach out every quarter for feedback so it seems someone would have told us something negative when asked. Emily is not in our database so I don't know her story and she has not responded.  What I don't understand is that if she got a 3rd party inspection, she would have known about these issues before closing. It is important that if repairs are agreed upon after the inspection, that the buyer should always have the inspector go back to verify. Sounds like she missed this step. Since she is not a part of our network, I can't really negotiate on her behalf. That's the benefit of being a part of a large network - these providers do not want to upset us or they will be removed from our referral list

Post: kathy fettke real wealth network

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

@Hanna J. Thank you for your feedback! You raise a couple of really important issues.

1. When people buy "turnkey" property, they often have the expectation that the property will somehow perform differently than any other real estate.  Unfortunately, that's just not the case. Tenants are tenants. They may lose their job, suffer illness, and/or be messy.

Also, property management in the U.S. is improving but far from perfect. When we refer people to turnkey companies, we do not have any ownership in those companies and cannot control their actions. All we can rely on is their past performance. This does not guarantee future performance, as people are people. Some companies grow too quickly and suddenly are no longer offering the stellar service they once did. 

That's why it is absolutely up to the buyer to do their own due diligence. ALWAYS get appraisals and inspections, no matter who refers you. Always pay attention to your property manager's performance because there's no way I or my team can monitor thousands of properties in dozens of states. 

So why work with a network? It is not so that you can have someone take care of you for the life of your property (with no payment for such services...). You pay no more $ for the referral than if you bought on your own. It is because that referral company has had a good relationship with the company up to this point. And if there are problems, there's a good chance the referring company can negotiation on your behalf because most likely they want future referrals. If their services start to suffer or change, then the referring company can stop referring - which means anyone on the referral list would have been recommended by others. It's a lot like Yelp - you probably wouldn't blame Yelp for a bad referral, unless they were giving 5 stars to companies with a poor history.

For what it's worth, those companies that you mention above are no longer on our referral list - and for the same reason. They grew too quickly and started "cutting" corners and not knowing how to scale. They may have started off great but got ahead of their skis, so to speak. 

2. The second thing I want to point out is that because of the word "turnkey" people often have false expectations. You must follow the rules of investing. Always have 6 months reserves set aside for emergencies or vacancies.  Always perform inspections and appraisals before purchasing. Always, review repairs done by management, asking for before and after photos and receipts. If the PM is late with payment, find out why immediately. I've seen too many PM's grow too quickly and then suddenly find themselves out of cash. They then use tenant money to pay staff or overhead. This is illegal, of course, but desperate people do desperate things. I lost 2 months rent and the tenant's deposit on my Cleveland properties for this reason. But I just used my 6 months reserves and moved on. 

3. Finally, I just want to wrap up by saying that we have tightened up our vetting and auditing process to make sure the turnkey companies we recommend are truly walking the talk. This does not mean investors should trust blindly, but does mean we've used our years of experience in seeing turnkey providers failed, and helped educate growing companies on what they should be aware of. In fact, we are having our first mastermind in Nov with the 17 turnkey companies we recommend - to share best practices. It's going to step up the game in a big way.

Thanks for listening, if you made it this far. :-)

Post: Newbie looking for market recommendations to check out...

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

@Bruce Mac

Some of my favorite markets are those with job and population growth mixed with affordability and city revitalization. Kansas City, Cleveland, Pittsburgh are great cash flow markets with possible appreciation due to all the growth. I like Florida too because so many retirees are headed that way and many are renting.

Post: Grand Rapids REI Club

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

Ahhhh, thank you Meghan! Feeling GREAT! :-)

Post: San Francisco Bay Summit - Oct 7 & 8, 2017 - Join the Reunion!

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

What a GREAT group of people! Thank you so much @J. Martin for inviting me to speak. I was pretty nervous in front of that savvy group of investors, but not as nervous as last year when I was in the main theater and my slides wouldn't advance and I couldn't remember the talk without them. lol  The highlight for me was YOU as AUCTIONEER, raising over $20K for a children's charity in Vietnam. It inspired me to do more. So many people are in need. Big hugs to everyone. Sorry I couldn't stay on Sunday but it was my bday and hubby had lots of fun plans. :-) See you soon!

Post: Texas Turnkey Properties in Houston

Kathy Fettke
Pro Member
Posted
  • Rental Property Investor
  • Los Angeles, CA
  • Posts 100
  • Votes 176

@Emily Guido Hi Emily, That is awful! I looked through our notes and it does not appear the TTK was a referral from us? Either way, I would like to help if at all possible. We have been working with them for years and never received a single complaint. One of our investors got hit hard by the Harvey, but only ONE! Either way, please reach out to me personally to see if I can help you somehow.