Turn key rentals - Posted by markus

Posted by Don (Fl) on April 11, 2002 at 02:22:11:


On the surface these “turn key” opportunities sound great. Some are, some aren’t. Here is what to look out for.

First, keep in mind that this is a “management company” whose sole income is the fees they collect for “managing” investors property. Usually 10-15% of the gross rent and they also charge for coordinating repairs.

Second, you are not the only investor whose property they are managing. If they are 85% occupied and you are part of the 15% that is not occupied, you are in a severe negative cash flow situation. You state they guarantee to make all the repairs and handle all the paper work. They don’t guarantee a tenant.

Most of the time I hear of these type of deals, the investor gets frustrated with the management company and ends up managing it themselves in competition with the original management company.

My advice is to check it out thoroughly before you buy.

Hope this helps.

Don (Fl)

Turn key rentals - Posted by markus

Posted by markus on April 10, 2002 at 22:11:10:

Hello all fellow investors,

I am new to real estate investing and I have learned so much from this site…Almost better than any course that I have read. I have been introduced to a turn-key rental situation where a management company would like me to take a loan out on a property so they can manage it. They have guarranteed me that they will make all the repairs and handle all the paper work. The properties are luxury condos in Atlanta that have enough equity for me to pull out at the table. These condos are already being rented out. It sounds good that I would have a long term investment property in my portfolio, I would be able to pull money out of it and I don’t have to worry about the hassle of being a landlord. However, I have never heard anyone mention such a tactic. Can anyone please give me some advise.