OfflineI was wondering if people could share their experiences with turnkey investing. How much equity and cash flow was built in to the deal? And what were your impressions overall?
For those who may not know, turnkey REI companies provide wholesale properties and then provide everything else from contractors to property management.
Basically, the investor put up the cash, and the turnkey company finds, fixes, rents out, and manages the properties.
The benefit to the investor is instant equity, cash flow, and property management. The benefit to the turnkey company is instant cash profit from marking up properties and other profit centers they may build into the cost of providing total REI solutions.
For investors with extra cash and no time, it seems like a tempting option to have someone set things up from A to Z, albeit for a profit. It definitely seems like a viable option for newbs who may want to take their first cue from turnkey companies, as a sort of hands-on internship to learn the ropes.
Anyhow, I'm very curious as to the DG family's impressions, experiences, and reviews. Please share.
Your friend,
SHINE
My first two transaction in business where two rental purchased from a turnkey REI company.
This was the worst transactions I have ever done.
The company set up with properties that had no equity.
The company set us up with financing that had a prepayment penalty.
The company got squatters to live in the homes we had purchased to make it look as though the homes where rented.
The rental / lease documents where fraudulent.
Needless to say I did not like the experience.
There are good turnkey companies however. Dean works for some of those.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125