I’d Make Greater Profits if I Find My Own Properties..I have heard this repeatedly. Why do I need you to sell me your professional HMOs? My quick reply is you called me…I did not call you. The funny thing is these property investors are as close as London and as far as China. I love the fact that. They have full time jobs yet think they can source quality HMO properties, refurbish, vet quality tenants. Love it…What happens too many times…simply nothing. The money sits in the bank and no monthly income of rents comes in as they realise it is not as easy as the gurus and course sellers promise.

When we lived in the States I would be on alot of mailing lists. I had Turn Key providers run me deals.

For example, I ran the numbers on a Columbus, Ohio duplex on Johnson Street. I liked the price, the rehab estimates and rent ranges, and told the turn-key group that I wanted to see the duplex; of course, I scheduled a trip to Ohio.

I liked the neighbourhood.  A children’s hospital had just been built nearby and the area was starting to improve. New houses and remodels were surrounding the old Johnson Street duplex. I had already seen the inspection report from the turn-key company so I had a good idea of what I would find on the house tour.

I have been doing property refurbs since 1994, could say I have a fair knowledge.

I was told that I didn’t need to inspect the basement because they had already completed an inspection. Anything wrong in the basement surely would be covered in the 25K worth of repairs estimated by the turn-key group. ( Sure)…As my wife says…I am obsessive compulsive paranoid…I did not believe anything!!

Thank GD I am paranoid!!

There were issues in the basement not reported on their inspection report:

  • A flooded basement
  • 2 missing furnaces
  • A cut sewer line
  • 2 missing hot water heaters

Bottom line there are crooks on both sides of the pond. You always need to do your own homework and due diligence. I strongly suggest to every potential buyer we have on our properties is to have a survey.

I believe in turn-key properties; I sell turn-key rentals.  What I am going to tell you is to do your research before you buy. We all work hard for our money unless we win the lucky parent inheritance lottery. One has a choice, they can invest in stocks…bonds…art or property. Property not leveraged has to be one of the better investments when properly leveraged…or even better not leveraged. If you do not live in the area of investment for example Manchester, Liverpool or Newcastle what better way can you have a tenanted cash following property. Refurbishments take time…Tenants take time to vet and find. Yes, you might make greater profits if you find the properties and tenants yourself. But do you have the time…are you local to deal with all the issues? How many hats do you want to wear? Doctor, dentist, lawyer plus property developer and land lord?

If you decide to purchase from a Turn Key provider,

  1. Buy one property at a time from turn-key companies. Make sure the first one works before you buy the second.

We have had repeated purchases by our buyers….We will gladly give with their permission their contact details as a reference. This is what you want if you consider buying a turn key property.