Has Anybody Explored Turnkey R.E.I. Companies?

Property Direct is a company who provides such an opportunity and works with Dean's organization. This relationship creates a sense of trust for me. I spoke with several of their representatives, as well as the founder, at the Insider's Edge Buying Summit this past week. I was impressed with their knowledge and the deals made available. It is my intention to include properties from them in my portfolio.
They take care of the due diligence in the deals, but be sure to do your due diligence on any company you work with!

Property Direct is a company who provides such an opportunity and works with Dean's organization. This relationship creates a sense of trust for me. I spoke with several of their representatives, as well as the founder, at the Insider's Edge Buying Summit this past week. I was impressed with their knowledge and the deals made available. It is my intention to include properties from them in my portfolio.
They take care of the due diligence in the deals, but be sure to do your due diligence on any company you work with!

Do you have a website address for Property Direct? I did a google search and couldnt find a web page for them.

Louis, I didn't have a great experience with them. As far as the management fee, I think it's high because I found others that charge 6% to 8%. To each their own. Are you involved with this company in any way?
Raymond

I can only speak from my experience but I can tell you it was not good for me.

I purchased a Section 8 home from them at a Buying Summit almost a year ago. They said it was renting for $950 getting a 12% return on my investment.

Shortly after I bought it the tenet moved out. Can only assume because the rent was way over priced because in a phone conversation I had with someone at the Management Company they told me they have no idea how anyone got someone to pay that much as it was well over what rents go for in that area.

The property sat vacant for over 3 months before the management company got around to letting me know this. And oh yeah by the way the house was totally vandalized and had the plumbing ripped out of it.

Management company told me at first it was not that bad and even at one point offered to cover the repair chargers. That was until the repairs came to over $10K and this only after several more months of sitting vacant. Then it was total denial they ever said that (even though I have it in an email that they did).

They finally got Section 8 approval for it but then the office that handles the applications sent over a tenet that was only qualified to pay $650.00.

Property Management told me they could get someone in there paying rent in a week if it was not Section 8. So I told them to do it.

That was about two months ago. Just called them again today and they say the reason they can't rent it is the price is still too high at $800 and i should consider lowering it even more.

So I have owned the house for a year. I have collected a grand total of two months rent and dumped over $10000 in repairs into it.

Thank you so much Property Direct for selling me the rental property from hell.

WOW, Jim!
Sounds like you need a much more vigilant and ethical property management company!
I would've fired them a long time ago. Sorry for your hassles.

With Any Investment, due diligence is needed. A company is operating to earn a profit. This is the same reason you are investing, to make money. Simple concept. All companies are looking out for their best interest and you should too. If you find a deal that sounds good from ANY Turnkey company, make sure to compare rental rates on www.rentometer.com and always, always, always get a home inspection. Well worth the $350. Have the company send you a video of the street, look for vacant properties or too many people hanging out in the street. Get a feel for the area, especially in you're doing this remotely. Build your own team that you trust. Have someone with local knowledge (3rd party) advise you about your potential investment.

As far as equity and cash flow, it depends on the company and the area of the country. It varies heavily. Compare and negotiate! Everything in real estate is negotiable!

I am considering buying cash flow property from Ready Prop but I haven't seen any posts from anyone recommending them.
If you currently have rental property that you purchased from them I would love to hear about it.

Hey There!

Would love to help you find an investment please visit qcturnkey.com

-John R

http://www.propertydirectusa.com/contact
THIS IS A UPS STORE ADDRESS
PROPERTY DIRECT
770 East Main Street, Suite 501
Lehi, UT 84043

As Chad said above, you MUST do your own due diligence; pay for an inspector to go the property and have him send you a report and photos! It will be the best money spent, and it could save you thousands, and a big problem.

I recently bought an out of state 'turnkey' from another investor, and because I thought I knew the character of this person, I did not get an inspection... huge mistake!

I hate to see someone who is dissatisfied with something and there is a post above, from Jim, indicating that you are not happy with your experience. Obviously there are circumstances that no company can control. It sounds, Jim, like you have good reason to communicate your full experience with Buy Properties Direct, and I would encourage you to do so. I have found them to be reasonable and helpful, but they are not always able to solve all problems, and once a person purchases a property, it is their responsibility to deal with the problems that come along, and that can be a mixed bag. I've had a property or two that haven't really worked out (as in a two year lawsuit caused by non-disclosure of pertinent information, which I won, as I always do in court).
I have not known Buy Properties Direct to overinflate expectations of income, they go by the best information they have been able to obtain from local services, including property management. I have also known them to be fair and reasonable in resolving issues. I'm not sure, Jim, if you have communicated with them, but I think they need to know your story.
Buy Properties Direct does sell a lot of properties, occasionally there will be something unanticipated, but we always suggest being proactive and doing necessary due diligence with regard to what you are being told. Very rarely do problems come up that originate from the actions of Buy Properties Direct, but they do work with people to resolve those issues.