All Forum Posts by: Steve Donovan

Greetings @Kay M. !  

I have posted this previously, but it bears repeating... Do your research on the markets and the turnkey company prior to making any investments; especially these days as there are people looking to make quick money off unsuspecting buyers.

The Bigger Pockets forums provide a wealth of information and sources of ongoing support. Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns. If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

All the best to you as you begin your investment journey!

Hello @Garrett Jennings !  I agree with Rodney's comments that any details you can provide would help others to offer suggestions.  I'm very active in the Oshkosh market, both buying and selling investment properties and would be happy to be a resource to you.  Feel free to message me. 

@Louis Chatfield  This sounds like a great deal for you.  Congrats on an awesome investment and best of luck in your investing future!

Greetings @Ryan Santelises  I'd love to help you explore turnkey real estate investment opportunities in Wisconsin, where you can still find cash flowing opportunities.  Feel free to reach out if you would like to connect.  Best of luck in your investment future!

Hello @Brahmjot K.  There are many markets in the Midwest that still offer positive cashflows even with the current higher interest rates.  Do your research on the markets and the turnkey companies and make sure you are comparing apples to apples when reviewing the proformas.  Many TK operators do not factor vacancy or maintenance allowances when calculating their returns.  All the best to you in your investing future!

Greetings @Martin B. !  I have posted this previously, but it bears repeating... Do your research on the markets and the turnkey company prior to making any investments; especially these days as there are people looking to make quick money off unsuspecting buyers.  

 The Bigger Pockets forums provide a wealth of information and sources of ongoing support. Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns. If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

All the best to you as you begin your investment journey!

@Justin Pinder  Do your research on any area you are considering investing into.  Some cities have a much higher percentage of owners versus renters and this has a big impact on the vacancy and available unit metrics.  All the best to you in your investing future!

Hello @Account Closed ! I might suggest you widen your search slightly south and include Oshkosh and Fond du Lac as well. Both are great smaller cities on Lake Winnebago and offer better ROI on rental properties right now. I'm happy to recommend a couple of property management companies in the area that we partner with, but would prefer to do so privately. Message me if you would like their contact info. Best of luck to you in your quest for NE Wisconsin income properties!

Hello @Evan L.  I think your best option would be to sell and reinvest your proceeds into a different property.  You may want to look at other markets that offer better returns, and make sure to fully vet the turnkey provider or property manager you choose to deal with.  All the best to you in your investing future!

Greetings @J Raj  

These forums provide a wealth of information and sources of ongoing support. Many new investors look to turnkey to get started, as it provides an entry point that requires less hands-on and allows an investor to participate in markets that offer higher returns. If you go this route it is important to realize that there is no common definition of turnkey. In terms of rehabbing the property, the workflow can range from throwing a coat of paint on a wall or two, to an entire gut of the mechanicals, windows, siding, and flooring. Some providers take the approach that a furnace or water heater with several years of expected life shouldn't be replaced in the rehab, but that the final product should be priced accordingly. That furnace will need to be replaced in the next few years, but just not yet... Some turnkey companies sell the property to investors at the point where the rehab work is identified and quoted, but not yet completed. The investor then waits for completion and tenant selection prior to earning any income. Other providers sell the units only after the rehab is completed and the tenant in place.

Any turnkey investor should ask very probing questions of the turnkey provider regarding the condition of all mechanicals, roof and windows prior to entering into a deal. As you will soon find, there is no common definition of a turnkey property, and it can be very risky (and expensive) to make any assumptions.

The ongoing management of the property is another area of vastly different approaches to turnkey investments. Some providers simply sell the property and the investor is left to find a management company, maintenance personnel, snow and lawn care providers, etc. Other providers offer up recommendations for these services, and still other turnkey companies offer these services as part of their overall package. The range of offerings is great, and no assumptions should be made; you need to ask very specific questions regarding who is to do what.

All the best to you as you begin your investment journey!