All Forum Posts by: Leo Qu

@Jay Y. Thanks for the pointers! Sent you a PM : )

Looking into turnkey companies in Chicago and trying to do my due diligence. I spoke with the boss over the phone, and the gentleman seemed like a good guy. I was wondering if anybody out there have invested with them and how was their experience.

Thanks in advance,
Leo

@Jeff Pollack Thanks for the advise! It is very detailed, and have a lot of actionable items. Will be sure to do the due diligence.

@Chris Clothier Thank you for the advice. I'm hearing numbers between 1.3-2%.

Guess there is no replacement for doing your own due diligence. Regardless who I work with, would have to get a second opinion on the property/neighborhood.

If I compare properties in the same neighborhood to the turnkey offer, should I expect the turnkey offer to be a deal? About even? Slightly more expensive?

@Ali Boone Tagging again, last one might not have worked.

@Ali Boone Yeah that's a good point. If one had to put up that money up front while turnkeys do renovations, it would be a lot riskier. I would expect the turnkey guys to give a discounted price in that case.

Numbers I hear are anywhere from 1.3-2% of house price in monthly rent. I think turnkeys do provide a lot of value, and they should make a bunch of money. But just don't want to be ripped off.

Originally started looking at Cleveland because the housing was cheap and I may be going there for a trade show for work next year which is convenient. Since then have started looking at Philly and Chicago also.

The question I'm thinking about is, how can I incentivize turnkeys to want to work with me over the long term, and develop a partnership, rather than just do one-and-done and give me the bad end of one deal.

@Eric Baum  that's an awesome list to get a beginner started. Thanks a lot. I sent you a PM

@Eric Baum New investor just starting out here. A few things you said in your posts are very interesting, and I would appreciate your insight.

When you say Birmingham has very similar characteristics to Memphis that attracted you a few years ago, what characteristics or metrics do you mean? One of the most confusing things for me as a newbie is how to identify the target market.

Right now I'm thinking about Cleveland and Springfield, but that is only based on very simple googling and comparing rental/sale ratios on Trulia/realtor.com

Would love to hear your thoughts.

Hello BP,

I plan to invest in a few buy and hold properties in Cleveland and/or Springfield, Ohio. And having a full time job, going for a turn-key solution doesn't seen like a bad idea to me.

• Economy of scale when fixing up property
• Developed networks of wholesalers, PMs, and contractors etc.
• Knowledge of the market and different neighborhoods

My question is how do you distinguish the high quality turnkey providers from the ones that will give low returns, or worse low-ball you? Everybody claims big numbers...

And any recommendations for some good people in these areas that one can develop a real relationship/partnership with?

Thanks in advance for your advice.