All Forum Posts by: Mark Anderson

Chris,
I know two private money lenders that will lend on buy & hold rental properties. One will do 7 or 10 year amortization at 12%, the other will do 25 year amortization at 8%. PM me if that is in the ballpark of what your are looking for.

I would have marketed like a beast for private money while I had all my cash tied up doing my first flip. By finding more private money, I could have done several flips at a time instead of just one at a time.

Anthony,
Most turnkey companies will buy a property, rehab it, then sell it a cost higher than their all-in costs. So they make a spread up front, much like a wholesaler.

One the back end, if the turnkey company has in-house property management, they make the property management fee every month on the back end.

Ditto for us too, Todd.

Though I've only been on BP for a few months, it seems turnkey companies have a bad reputation on here. Maybe its deserved in some cases but I think the biggest thing is BP members are more involved and hands-on with their investments and don't want or need a turnkey service.

Regardless, however you decided to invest, look before you leap.

Todd's post is a good guideline for the due diligence process when evaluating a turnkey company.

I have heard of one company in Florida that asks for up front money from the investor. After hearing their rationale for this, I can see how it would make sense from the company's perspective...but it seems like it would be a tough sell to the investor, as evidenced by everyone here thinking its a scam.

Turnkey companies are not right for everyone, especially those who like to do the work of investing themselves. But as Sean H. noted, they are a viable solution for those who want to invest in real estate, but can't do it themselves for whatever reason.

Full disclosure: I do some investing on my own as well as work with a turnkey company. We have never required anyone to put down money to get on the buyers lists.

Ah, ok I have seen that blog. Good stuff. Thanks Joshua.

I'm familiar with J Scott and Tom Tarrant's blogs, but who is Steve L? I'd like to check his out as well.

If someone has had a bad experience in a particular market, nothing I say is going to change that person's opinion, especially since I work with a turnkey company as Phillip pointed out.

What I will say is Brandon makes a lot of good points in his posts with the main one being about conducting proper due diligence. Learn the market and know who you are working with. Know what gets done during the rehab and how the PM handles maintenance, screens tenants, etc.

Personally, I have six rentals, four of which I acquired from a turnkey company while I was still working as a Certified Financial Planner. Several years later, I now work with that same turnkey company.

As with any other industry, of course we know our local competitors. I can't speak for any of the others but we don't like our competitors and I don't think they like us very much. Now how they treat each other, I don't know.

There are good deals here and bad deals. There are good companies here and bad ones as well. I don't think that is unique to Memphis though I've only invested in Memphis. There are markets that get talked about all the time on BP, such as Atlanta, Dallas, Austin, Houston, Cleveland, Detroit, Charlotte, Cincinnati, Birmingham, etc. My guess is that someone could buy in any of those other markets and have an equally poor experience if proper due dilegence is not done prior to investing.

Wow Phillip. I live in Memphis and have six rentals here and definitely haven't had the problems you've had.

Two of my rentals are managed by Norman Realty and four are managed by Premier Property Management. I've had good experience with both.

What the Grizzles did was amazing for the city and really came out of nowhere when you think back to the beginning of the year.

Did you make it to any games Brandon?