All Forum Posts by: Emily Powell

@Vince Scolari - I did use Norada for a purchase 2 years ago.  I spoke extensively with Marco through the process and he was great.  Unfortunately the experience I had with his provider was no so stellar.  I still own the property I purchased through them a couple of years ago, but I don't love it and wouldn't make my $ back were I to try and sell it today.  I don't think that is a reflection on his company as a whole, however and wouldn't want to steer you away, if you were thinking of working with them.  But you asked about experiences, so I thought I'd share mine.  

@Tris Rollins so many opinions on the subject, as I'm sure you're finding. In my humble opinion, no. Insure properly and you'll be fine. 

@Vika Bha Out of curiosity, did you check more than 1 house being sold by that company or just the 1 before crossing them off? I would guess that the amount you saw was actually the payoff of a lien (which is a subject I am not terribly familiar with). I'd be curious what else you could find on their properties, as I highly doubt that kind of profit is possible on a small SFH.

If your goal is to buy and hold, there is no reason you should lose money if you plan to sell down the road after buying through a turnkey company.  You wouldn't be able to sell it immediately and make money, but if that was the case, you shouldn't be buying TK in the first place.  You just need to do your due diligence and buy right, just like you would any other investment.  Don't blindly trust, do your own research to make sure you're making a good investment at the start.  Don't discount the entire industry just because of a few naysayers on BP.  

@David Song I think @Bryan O. made my point better than I was able to, so I will just refer to his post above.  There will always be people who prey on the uninformed, in real estate and every other industry.  That's why it's so important to do your due diligence on the company itself.  There wouldn't be so many TK companies if they didn't serve a purpose.  And I don't see that purpose as scamming ignorant prey (as you call them).  It's a different kind of investment strategy that isn't right for everyone, but is right for many.

I credit the TK industry for getting me into real estate.  It was a more comfortable route to ease in to investing without having to learn everything all at once.  Did I make mistakes?  Certainly.  Did I learn from them?  No doubt.  Would I have done more/different due diligence had I known what I know now?  No question.  But like anything in life, there's a learning curve and TK helped me navigate it.  I have purchased additional (non-TK) properties since those first investments which I probably never would have purchased had it not been for those companies.  Do I think I was scammed?  No.  Do I make better purchases now?  Absolutely.  But I am grateful to them for what they are.  

@Micah Mcarthur to your question about warranties.  Each company is different and provides varying "perks" with your purchase.  Some do offer warranties on their work, others don't.  Some have in-house management, others have companies they work with or recommend.  Some provide rental guarantees for a certain period of time.  Some offer free maintenance for a period of time.  Each TK company is different and offers different incentives.

You're certainly right about paying a premium for someone else doing the work for you, but isn't that the point?  If you had the time, resources and interest in doing it yourself, of course you could save $, but for many people, that's not an option.  If you have the time and knowledge to do the research yourself, then I see no reason for you to go through a TK company.  But I imagine you've come to the same conclusion.  :)

@David Song - In your opinion, is it better for an investor who has no time to research properties, go to auctions, analyze market trends, etc to purchase a property at a potentially slightly inflated price with positive cash flow to hold on to for the long term or to not invest at all?  Honest question.  I'm interested in your view.  

@David Song I don't follow.  How it is against the rule of economics if a TK provider is purchasing well enough below market value that they can put $ into it and still sell it to an investor with instant equity?

@David Song While I think you may be correct in many cases, that turnkey companies sell to investors at or above market prices, I don't think it's fair to make a blanket statement about all turnkey companies.  Based @Micah Mcarthur's initial post, some people are purchasing TK properties below market value, so to call them all scammers I think is unfair.  Some investors are willing to pay for a property at or above market value for the convenience of having the work done for them. That doesn't mean they were scammed.  Hopefully they have done their due diligence to know what they are paying for and are ok with the additional cost, so long as their numbers still make sense.   Food for thought.