All Forum Posts by: Account Closed

@Account Closed

 I would say that there is only one way to know for sure - ask as many private lenders as you can find. Thin about it, what do you have to lose?

At a recent investor club meeting, a group of investors raised the question - why do Turnkey Companies "flip" their properties primarily to investors as opposed to owner occupants? One person responded, "because the majority of Turnkey companies operate in markets/neighborhoods with low job growth and limited capital appreciation... therefore little interest from owner occupant buyers." Another investor said, 'because some companies buy in neighborhoods/cities with incredible cash flow (2% rule of higher), but the problem is, very few prospective owner occupants want to live in those areas. Yet another investor thought that  many turnkey operators want to help investors realize higher returns.

Clearly, there are Turnkey companies that operate in excellent growth markets such as Austin, but I thought I will turn the discussion  into a forum to get a few different perspectives. Happy investing!

@Joe Kim

You have any ties to Korea? 

I really appreciate your detailed response, very informative indeed!

"I think the bottom line is doing deals with people #1 you know #2 you trust #3 with references from friends who you trust #4 who have wrinkles. (don't hide issues/problems but walks you through them with confidence)."

Very well said I am am certainly going to send you message, thanks again for your comments - I think many people will benefit from the info shared.

@Mike D'Arrigo

 Thanks for your comment. I absolutely agree, if I instruct a stockbroker to buy shares and they do not perform, I cannot expect the stockbroker to refund me. However, what if the stockbroker deliberately provided inaccurate information? Do I have options, you bet! What options do  have if a TK provider did not provide me with accurate and honest info...? Is asking for a buyback if information provided is deemed inaccurate unreasonable...?

@Curt Davis

 I do not think it is the silliest question ever. I am attending an investors club in Seoul, South-Korea, and I can assure you that there are many investors who are trying to identifying the best TK companies out there. Why is it silly? Identifying the most trustworthy companies is a most noble en-devour in my view. How do you gauge it - percentage of satisfied clients would be a good start...

@Jay Hinrichs

 Thanks Jay! I absolutely agree with you, there are good TK providers out there and I am trying to identify them :)

@Brie Schmidt 

Thanks so much for sharing - making me think that one really has to do due diligence ( and then some) before investing with these companies.

@Derrick CraigThanks for the response! Do you think it is reasonable to ask for some kind of guarantee when acquiring a turnkey property? Perhaps 36-months is unreasonable, what do you think about a buyback policy...if information the company provided turns out to be false?

@Ben Leybovich

 You legend! I actually just send you an e-mail :)

1) It would be nice to know that they believe in their renovations - not just a lipstick job! How about a 24-month guarantee...? Also, I just read, My Turnkey Disaster on BP.

2) I am actually living and working in Asia, but you are right, from what I am reading on BP - Indiana is indeed a good place for SFR. Thanks for the tip!

Much ink has been spilled on the subject of Turnkey Companies. However, I do not think we have managed to identify  top 5 Turnkey Companies in America.  I know there are hundreds of companies - perhaps a good place to start would be to identify those that offer a 3-year buy back policy in the event that they do not deliver on the promises?