All Forum Posts by: Jeff Schechter

There are risks in any type of REI. Like in any other niche, there are good and bad. Some TK's are great....they'll show you everything...the scope of repairs, the 3rd party inspection, the good mgmt, offer a warranty, etc. Others, not so much. There is a MUCH higher risk in doing a rehab from a distance... getting good contractors is tough in ANY market, finding deals, getting tenants, finding a good PM.... the eBooks make it seem so easy, but it's a LOT of heartache. There's a reason why the TK industry is growing so fast.

@John Elias  Lots of good points brought up here.  Your biggest considerations are...

1.  WHERE you want to invest - TK companies are typically located in areas where the best price-to-rent ratios are.  

2.  WHO you want to invest with - find a good TK that you can trust...go see them...meet the team, make sure all the documentation is in place before pulling the trigger.  3rd party inspections can go a long way to ensuring you've got a good property that will perform for a long time.

We are about 450 doors deep in Indy.  Good, stable market.  Great pricing, great price-to-rent ratios.  Very reasonable taxes.  Laws are very landlord-friendly.

Hey @James Wise We're about 450 doors deep in Indy. Full Turnkey. 90% C-class...mostly SFH's. You can see what we're up to here:

https://HighReturnRealEstate.com

@shaquanna Do you want to be active or passive? Doing a BRRR from a distance is a big undertaking. If you have the time and resources to come back and forth to Indy then it may be worth it. Otherwise I would suggest working at TurnKey companies

@Jessica Brown Happy to answer any questions re the Indy turnkey market.  We know it well.  Feel free to PM me.

@Andy Ramdeen all great points made here!  I think you have to decide on the opportunity cost.  Doing a deal by yourself from a long ways away requires many moving parts to work in your favor.  If you don't have the time of the inclination for that, then TurnKey is a great way to go.  Once you've decided on that route, pick 3-4 that seem to be the best, then go through their stuff, look at deals, analyze, compare.  Once you get down to a couple that you feel comfortable with, GO SEE THEM.  As the CEO of a Turnkey in Indy, I am amazed at how few people come see us.  

@Nick Rini  Definitely NOT a cop out.  A good TK company has processes fully dialed in - acquisition, rehab, correcting inspection items, tenanting, managing, etc.  If these are things that you're good at, or have the time and expense to learn how to get good at, then don't use a TK.  Otherwise, you have to look at your other commitments, and how much bandwidth you have for this stuff.  Without these skills, it will be difficult to do this in your own backyard, let alone OOS.  

My suggestion would be to find 2 or 3 providers that you are comfortable with, then have them send you a few deals to look over.  See how they present the information... see if they are transparent in showing you probable expenses.  See how the property is performing NOW... not what rents MIGHT be in 5 years.  Once you look through that lens, it will be easy to find deals that you are comfortable with.

@Almaz Hayet  I lived in San Antonio for many years, then spent a decade in Austin.  I think you'll be hard pressed to find anything that will cash flow in Austin.  If you want to stay local, certain areas of SA can be good for buy/hold rentals, and you'll only be 1.5 hours drive away.

Hey @Roman Ladijensky - The chart that @Mike D'Arrigo has provided is meaningful.  We love investing in Indy.  We're about 450 doors deep now.  Happy to answer any questions....feel free to PM me.