Get Rich Education 160: 19 Fatal Turnkey RE Investor Mistakes with Terry Kerr & Liz Nowlin
#160: You want cash flow that is stable and durable. Today’s guests, Terry Kerr and Liz Nowlin from Mid South Home Buyers, tell us how both they and Memphis, TN delivers.
We discuss the 19 due diligence questions that you need to ask when you’re vetting a turnkey real estate investing provider.
When you purchase real estate “turnkey”, the property is already renovated and tenanted. That way, your provider maintains more risk before you purchase the property.
Learn about the neighborhood “sweet spot”, little-known differences between a $125,000 property and a $62,000 property, and the importance of in-house property management.
Find out how to avoid lengthy vacancies. Does your provider mark up materials?
Learn about when your provider makes guarantees about your property’s occupancy and renovation.
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Listen to this week’s show and learn:
02:14 Turnkey defined.
04:52 Terry Kerr and Liz Nowlin interview begins.
08:01 Does your turnkey provider actually own the property?
12:13 Renovation quality.
15:12 $125,000 property vs. $62,000 property.
17:35 Neighborhood sweet spot.
19:18 Only 1 in 6 renter applicants are approved.
20:34 In-house property management.
24:37 Avoiding lengthy vacancies. Application fees.
28:21 Marking up materials.
29:50 Occupancy guarantee and renovation guarantee.
32:52 How your PM’s in-house handymen can be good or bad.
Resources Mentioned: