Downside of Buying Turnkey Real Estate

43 thoughts on “Downside of Buying Turnkey Real Estate

  • You made some good points. I wish I was younger, I would be buying all the properties I could handle. Also, have enough now and need to set up exit plan.

  • i live in California it's very expensive to invest here what are some markets you would recommend? Tampa? Las Vegas? can you make a video about this topic and how $ is needed

  • Morris –

    Would you personally invest in Chicago or Philly? Ali Boone is an investor at "Hipster Investments" a turnkey provider who pushes these areas heavily. How do I verify that?

    She bashes Detroit as well, but also recommends KC and Indiana (which I believe are better options than Philly/Chicago and probably metro Detroit too). I look at Philly/Chicago and see high barrier markets… In contrast, Redford, Dearborn, Hazel Park, Livonia, and Oak Park MI (southeast MI metro) have HUGE deals for rentals with lower barriers to entry but worse population growth and industry strength. I don't know if I should invest locally where I am in metro Detroit, or try other places with larger population growth/industry.

    So, how do you analyze several cities against each other personally? What websites and metrics do you use to gather and assess such information? And how can I tell if a turnkey provider is trying to take advantage of my lack of knowledge on an area/property?

    Thank you,

  • Clayton, do you personally work directly with any new investors to handhold them on their first? Also, do you do financing or the first property needs to be paid in cash? Have you had unsuccessful investors and why aren't they successful?

  • My husband and I were fortunate to buy our first home in Daly City right next to San Francisco and we are actually looking into buying another home once the market goes down a bit and use it as a rental. Our plan is to continue buying rental properties in California since it's such a desired place to live, how come you don't recommend investing in California/the peninsula?

  • Getting all my ducks in a row before i give you guys a call. I really enjoyed this video ( as my wife and I do all your videos!) we are eager to invest out of state through your company even though we are a bit nervous bout not being any where near our investment. You and your wife remind me of us with our hopes to build a legacy for our kids all while sticking it to "the man"! lol You'll be hearing from us soon once we decide on a local lender. we dont have the two you mentioned prior in your other videos down here in miami so we are looking for local banks in our area.

  • Thank you for posting. I always learn a lot from your videos. Just started the process with F&G, but once all that's settled rest assure I'm investing through your company. Many, many, many thanks!!!

  • Hello Clayton,

    One question I have is that if I buy an already rehabbed property from your company do I get information on things like; what the property was like before the rehab (possibly the inspection report & some pictures), what items were rehabbed in the process and which were not, and also, on the things that were rehabbed, what is the warranty (if any) on those components of the house?


  • I talked one of your guy last week; he was really nice. I am planning to work with you for my first investment property. How do I know the data or testimonials of any turn key providers are authentic and how can I contact the people who got service from them? Lastly, will you suggest to buy any property with less than 5% equity?

  • Hi, Clayton. If I'm investing in a turnkey rental and I'm financing the investment, do I ask what's the net cash on cash ROI? The net ROI is for cash only investments, right?

  • I did my research and found out people are moving to the south at a very fast rate. Should I think about investing there, even though I live on the west coast?

  • What is your commission percentage if I were to use your company to purchase a turnkey property, I'm assuming there is a percentage for property management. But according to your videos and your site, hands off for me means that you handle all the logistics. So if say the renovated total price before closing is $40k what would be your front end?

  • Hi Clayton, love the videos. I'm curious as to what Up front and on going fees your firm charges the investor? I live in the Los Angeles area and want to invest with your company but I'm unclear of the agreement between the Investor (me) and the TurnKey provider (you). Perhaps you can shed some light on this. Thanks!

  • Phil, do you have an uncle in the Seattle area? You have such a reasonable demeanor. I need a guy like you to be my partner. You would be fun to be married to and work with.

  • Wondering why 3br/1bath homes, instead of tgat nice 3br/2ba for ma and pa to enjoy a "master suite" with a private bath. Is it that 3/1's are less expensive than 3/2's but LIVE similarly because the 3 bedrooms are there?

  • How do we deal with those companies that have those hidden cost??? Do we leave them alone or have our own team to resolve matters??

  • Hi Clayton,
    I live in Indy and I see that you have some properties in my area. If we purchased a house from you, do you manage our property just like a property management company or do we just buy the house from you and have to find a property management company ourselves?

  • Thank you for the great questions to ask. I am looking into using a Turn-Key REI Company for my first investment. I am looking at Norada, heard some of the best reviews from this company compared to others.

  • Hello, love all your videos thanks so much for sharing. Can you please explain how you make money from this turn key process? Is it just the property management fee? Or are your profits built into the all in fee the customer agrees to with Morris invest? Thanks in advance.

  • Clayton, I really love your channel and your advice but I am confused why you keep on quoting a 3% return in the stock market when the average annual return for the s&p 500 is actually around 8%

  • I would like to email you to tell you my story about how I have acquired 35 properties in 18 months. I do not come money, actually I work 12 hr swing shift and invest in real estate in my free time. Look forward to speaking with you

  • "If you like to do hands-on real estate…then making millions in passive income by doing nothing is not for you."

    Fixed it.

  • What's a good way for looking for tenants? Is there a way to look at vacancy rates? What's a good vacancy rate like in percentage?

  • Hi Clayton, This video is very helpful like all of your other videos. I watched your podcast on how your turnkey program works. Sounds like a great program! I have a few questions since I'm completely new at Turnkey programs. 1) Why are you selling these properties and not keeping them for yourself? 2) What is the average NET Annual ROI for the investor with your program? 4) What are the additional costs to the investor outside of the acquisition price? 3) What is your company's role with the property after the rehab is complete and the property is turned over to the investor? I appreciate this information as my husband and I try to figure out what the best approach is for us to get started. Thank you for all you and your wife do to help others reach financial freedom!

  • I've seen some video of unhappy investors of your company on turn key. Can you do a video of you looking over the work done on the home with your unhappy investors

  • #2 is a lesson for all investors to thoroughly investigate any turnkey company. Look at databases for pending or current civil litigation. Talk to current investors with that company. Reputable outfits have nothing to hide.

  • Clayton, What is considered low, medium, and high vacancy rates in your opinion? What is the maximum rate for an area you invest in? Is there any reason why you would accept a higher vacancy rate in one area vs another?

  • Turn key properties:
    -find out vacancy rate of a city
    -find out if management company charges for maintenance calls or site visits.

  • I have listened to your procast 136 and I agree business needs to make money and if you can provide the service that we busy people don’t have time and stress free. Your service is still good. Lots of people just want to keep them all (to be stingy to get rich) but (rich is generous to get rich). Now that, I know more about your cheatsheet explaining about 700$ and we only get 60% of it for $420. $420 is still good ROI for $40k to $50k home. I am excited to work with you in short future as I watch more your chanels and when I sell my house then my money will roll in and I can start my first turnkey rental property.

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