Epic Real Estate Investing - How to Find the Best Turnkey Provider | 799

Episode Date: October 8, 2019

This Tuesday, Mercedes prepared an educational episode you should definitely listen to! She explains the 3 key things you need to pay attention to in order to find the best turnkey provider. Tune in and find out more Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing show for Turnkey Tuesdays with your host, Mercedes-Torres. Hello and welcome, welcome to Turnkey Tuesdays, brought to you by Epic Real Estate Investing. My name is Mercedes-Torres, and I, I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire.

For those of you tuning in for the first time, welcome to our Turnkey Tuesday show. Make yourself comfortable. This show is for busy people, busy people just like you, who understand the importance of real estate, just don't have the time or desire to do it all themselves. So we created this show to help you jump. into real estate investing and having somebody else do all the heavy lifting. So there is no secret, my friends, that I often get asked specifically about how I built our real estate portfolio.

And I often get asked about how I dealt with certain issues that transpired along the way, like, you know, holding properties long term, or how do I deal with professional tenants that work the system. Or, you know, property management challenges, I often get asked about that. In fact, this is exactly how epic real estate accidentally, I'll have to say, created our turnkey division called Cashflow Savvy. It was because I hated some of the ways that I was being treated by contractors, by property management, or by the beliefs or the rituals of teams on the ground that, quote, unquote, had my best interest in mind, but really didn't. So I did the next best thing and I created a business that was going to provide the service

that I wanted to receive as a real estate investor. And boom, that's how I created our turnkey operation. And so on today's show, I'm not only, you know, a turnkey investor, but I am going to share with you what a turnkey provider should provide you. And this episode is how your turnkey provider should be. exceptional at customer service. Because at the end of the day, what matters most in a turnkey investment company, well, that's easy. It's obvious. It's, you know, the markets, the best management teams. And, you know, does the model ultimately collect my rents and produce a positive

cash flow? Well, yeah, that's right. That's the general consensus across investors that, as long as the team manages your property and gets a check to you every month, then that's a good provider, right? But the reality is your turnkey provider should prioritize you, customer service to you, communication, and education. This, my friends, is my number one tip. As both customer service and education are a critical part of our business model and communication is key. Why you ask? Well, trusting somebody else to do all of the real estate work for you, like, you know, finding the right property for you, rehabbing it to its tea, qualifying the tenants and placing them in your property that are going to pay you rent, well, that's a big deal and it could be ultra nerve-wracking

because after all, you're taking a huge leap of faith which involves you parting from your hard-earned dollars. Surely, when you make the decision to use a turnkey property to acquire your rental or to grow your portfolio, you're asking yourself in the back of your mind if you're not familiar with that turnkey operation. You know, what if I'm being scammed or what if I'm being lied to? What if, you know, what if I pay for the rehab and the rehab doesn't get done? I mean, those things crossed your mind if you're not familiar with a provider yet or you haven't established that relationship yet. It's a big deal when you're jumping in, especially if you're a new investor jumping into this world. This is critical and this is why turnkey operational.

should be very active, intentional communication to help ease any fears of the first-time jitters or even the jitters of branching out to another market for our more experience investors. Because even if you're familiar with investing, jumping into another market, well, that can give you jitters in itself. At the end of the day, my friends, it begins to build a crucial bond that will create trust between you and your provider, because let's be real. A lot of companies out there don't prioritize in communication, and that's a big mistake. It should absolutely be a priority that communication with you and educating you should be the top of their interest. Communication and transparency are critical, and the trust that you're going to build with that

team on the ground can potentially make or break your investment. You will want to start securing that long-term successful working relationship because not only are you learning and growing yourself, but you're growing your wallet because this investment has the potential to create wealth for you. You know, when you're left in the dark as a real estate investor, you can then, you know, start to wonder if everything is going as plan. You know, the idea is to build a relationship, to have meaningful communication. And sometimes I prefer to over communicate so that you feel comfortable with anything and everything transpiring. Because this is what's going to build your relationship.

And you're going to start to see eventually that there is going to be a shift in your relationship. And rather than craving daily communication from your provider, this is going to start to establish a more sturdy relationship. And in fact, I have clients that have purchased a handful of properties for me that ultimately call me and ask me to make decisions on their behalf. That's because I've brought them to five properties and four of them are functioning phenomenally. The fifth one, they're like Mercedes.

Can you just make a decision for me? And that, my friends, is what you want to create with your provider. along with the communication, the education aspect of your investment is critical. I spend a lot of time speaking to our investors about what's transpiring in their investment process. So from the moment that you choose a property to the time that you have to choose your inspector, I provide a list of potential inspectors that you can interview because I know you don't don't know inspectors on the ground. So I will send you not only one or two inspectors, I'll send you a handful, about five or six, so that you can interview inspectors so that you can

price them out and you can ask them questions. And it is important that your team is going to provide you with that type of education and support during your acquisition process. The same thing goes for the appraisal. When your bank does the appraisal, it's a lot of information. In some cases, appraisals are 20 to 30 pages long, and they could be overbearing. Your turnkey provider should be available to answer any and all questions, not only about the inspections, but the appraisal and the entire closing process. And that's what you want to create with your turnkey. key provider. So, my friends, tip number one, communication and education should be utmost priority for your turnkey provider to provide to you. Tip number two, critical tip by the way, my friends.

Tip number two is you and your turnkey provider should be on the same page. When you are working with other people on a venture of any kind, you absolutely must be on the same page. Because without a common goal, you may find that your relationship could pull at different directions. Well, the same thing applies to your turnkey provider. Your turnkey provider ultimately holds the authority over the investment decisions, but you may find differences in certain concepts or perhaps there could be a misunderstanding. And it is for this reason why you have to be on the same page. So it is imperative that you do a first time consultation call that should be free,

my friends. This consultation call is critical. From the get-go, you want to talk with your provider as to why you're investing. I want to know what are your goals? You know, what are you trying to achieve with your investment? And it's important to me that I understand is this cash flow going to pay for your special needs child medication? It is critical that your provider knows all of that.

And for me, for example, I want to know your age. And at the end of the day, everyone's common goal for the most part is to create financial freedom. But one of the reasons I want to know your age is because I really want to understand how I'm going to get you to your end game of financial freedom. Because the approach that I'm going to take for a 24-year-old to achieve financial freedom is going to be completely different than that of a 70-year-old. So it is critical that you are on the same. page with a provider and a consultation will not only ensure that the provider is a right fit for you, but it will set the expectation straight so that both you and the provider are on the same page.

And once that happens, my friends, game on. Now it's all about helping you achieve your financial goals. In our case, it helps us provide not only, better service because it leads to a more seamless transaction. It really helps me understand your why. And for those of you who have been following me for a long time, your why is such a huge reason. And it's such a, it should be on the forefront of why you're doing what you're doing. Okay. My final trip, my friends, you absolutely must be. benefit from your turnkey experience, hands down. Turnkey providers should have a lot of experience under their belt so that you can learn from them, but it is your job to vet them. So ask questions

like there's no tomorrow. Ask all the questions that are important to you. And if you don't know what kind of questions to ask, let me help you. Grab a pen and paper. and write it down. And ask questions like, how many properties have you done? How many properties have you sold in the last year? How many have you sold to repeating clients? What is the percentage of new clients to repeating clients? And ask questions about the rehab.

Who does your rehab? Who is your rehab team? Is it a local team? Do you hire contractors or do you have specialized teams that are exclusive to you? Do you have your own roofer on board or do you hire a specialist to do the roof for you? And what kind of rehab do you do rent ready rehabs or are your rehabs top of the line? Ask about warranties. Warranties are important.

Do you just warranty the new water heaters or do you warranty everything that you do the rehab on? Ask about property management. My friends, at the end of the day, property management is the most important part of this whole equation. Because as I say often, it's not how beautiful your house looks or where it's located. If your property manager cannot get your property to perform, your asset is worthless. So you want to really dive into property management. Is your property management team in-house? Is your property management team delegated?

Do you use your property management team and ask questions that will allow you to see that the property management team's intentions are to get their properties to perform. And lastly, my friends, if you were doing a 1031 exchange, it is critical that you asked the provider, are you able to provide plenty of properties for a 1031 exchange? There are providers out there that have waiting list of six months for one property. And when you're doing a 1031 exchange, many times you need five properties at one time. So it is critical that if you're doing an exchange, that you vet your team out to understand that they could provide you what you were looking for. You know, turnkey operations should not keep knowledge to themselves. Transparency with

investors is important and it will speak of volumes of your provider. At the end, end of your transaction, you should be confident in your investment because you have a lot of information given to you. But if it's just given to you and not explained to you, it's not going to ease your mind. You know, you at the end of this transaction that you acquire your property, you should be stronger financially because now, of course, you have a cash flowing asset. You should be more educated because you learned how to have acquired a rental. And my friends, it is really tough. If you don't know what you're doing, how to get from point A to point B.

And communication and the education from your provider should ease that level of nervousness for you and should make the process as easy as possible and seamless. If you have your team on your side handling the tough stuff, but helping you understand the why, the when, and the how, it all gets put together, my friends, you should become well equipped to handle any real estate investment venture that comes your way with confidence. Now, you may depend ultimately in the future on the turnkey provider because the acquisition of your rental was super easy. And hopefully that's the case because this is one of the main reasons why I have so many returning clients is that it's easy. But then that'll be your choice. Great. Because that would mean that you are going to benefit from being a real estate investor,

yourself without having to do all of the heavy lifting. And my friends, that is called smart leverage. And I will end on that note. So I'd love to help you acquire your first rental or contribute to your existing portfolio. So feel free to go to our website, download the frustrated investors guide to passive income. You can find that at cashflow savvy, savvy with 2Vs.com. You can download it or you can just click on the contact us. You can connect with me or one of our cash flow savvy consultants or send me an email.

I do respond to every email. Sometimes it takes me a little bit, a few days, but my friends, I do respond. My email address is Mercedes at epic real estate.com. and feel free to reach out. I will absolutely respond to your email. So, my friends, until next week on another educational episode of Turnkey Tuesday, have an epic day. Do you have doubts about your current plan for retirement actually panning out?

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