A Real Wealth Network mastermind for R.E.A.L. Income Property Providers in progress.
Beware of “TurnKey” Rental Property Sharks!
A MESSAGE FROM REAL WEALTH NETWORK CO-FOUNDER KATHY FETTKE
T rust, but verify. As founder and co-CEO of the Real Wealth Network, I have found that real estate is full of sharks. Since 2003, I’ve been helping people create passive income streams through high cash flow rental properties. Since we’re based in California where cash flow is near impossible to find, we are forced to look for property out of state. That requires re- lying on agents, contractors and property managers thousands of miles away from us. We created a network of companies who could provide our members with below-market property, renovate them to rent- ready condition, and offer on-going property management for a “turnkey” investment. We found many stellar investment companies who could help our members build a strong rental portfolio out of state. But unfortunately, we also had the distinctly unpleasant experience of watching good real estate companies go bad. Some “turnkey” teams that we initially vetted got greedy over time. There was so much demand from our network of people looking for a safe place to put their money outside of the vola- tile stock market, these teams would often get overwhelmed. Some would compromise on the quality of their acquisitions and renovations. Some did work without permits, and others didn’t do the renovations at all! We’d immediately take these teams off our preferred provider list before they could hurt our members, but sometimes we learned about it too late. We are real estate brokers in California only, and cannot act
as a broker in other states. We can only make referrals, which means we aren’t involved in the details of the transaction. That’s why we’d only find out about problems after there was a prob- lem. This had to stop. Fortunately, we quickly found a solution. We became a solution. We decided to empower the investors so that they could never get ripped off again. We formally established our R.E.A.L. Income Property Standards - a comprehensive list of items people should expect from their “turnkey” real estate investments. Once we established the standards, we educated our mem- bers that they should expect no less. And we urged them to get 3rd party appraisals and final inspections before purchasing, to be sure that all the work was done to those standards. RAISING THE BAR ON THE TURNKEY RENTAL INDUSTRY We don’t really call it “turnkey” anymore. We call it R.E.A.L. Income Property, because we want investors to have realistic expectations. The word turnkey gives a false sense of security that there will be no evictions or repairs or vacancies. We now meet every 6 months with all the R.E.A.L. Income Property Providers on our list to share best practices, hold accountability and mastermind better systems. If a team can’t live up to our high standards, they are removed from our referral list. Since we have over 36,000 members, they don’t want this to happen. This is how we are helping our members create REAL WEALTH. •
INVESTOR REVIEW :: 13
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