The Ultimate Guide to Choosing Turnkey or Fixer-Upper Investments

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About this episode:
In this episode, Thach Nguyen delves into the perennial debate in real estate investment—whether to buy turnkey properties or fixer-uppers. He offers invaluable insights based on his extensive experience, highlighting key considerations such as time, money, and risk factors that influence this decision. Thach's meticulous breakdown of the pros and cons of both investment strategies provides aspiring and seasoned investors with the knowledge they need to make informed decisions.

Thach explains that turnkey properties, although convenient and less risky, come at a premium price and do not offer opportunities for creating sweat equity. On the other hand, fixer-uppers, while demanding more time and effort, allow investors to add significant value, ultimately resulting in higher returns and greater net worth over time. He passionately advocates for the BRRRR strategy, emphasizing the potential for exponential growth through repeated investments using the same initial capital.

Thach Nguyen has come a long way since arriving in America at age 4 with his parents, four brothers, and sister in 1975. Focus, drive, determination, and great mentors paved the way for him to go from a homeless refugee to a multi-millionaire.

Thach is the CEO & Founder of Thach Real Estate Group and principal of Springboard to Wealth. He is not only a seasoned realtor, investor, coach, author, and speaker, but also a proud ambassador of the American Dream. During his 30 years in the real estate industry, he has built more than 300 homes, townhouses, multifamily units and completed over 100 flips, and owns over 100 rental properties giving him over $100,000 a month in passive income. Thach and his team have assisted more than 1,500 families to create their own American Dream of home ownership, ranking him in the Top 1% of all real estate professionals nationwide.

[RamonLukeman]

Hit 400k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months.

[DavidS-jc]

I remember buying a fixer upper that I put about $5000 in cosmetic repairs. After the repair was done, I thought, great, this house is just like new. However, 2 years later there were foundation problems. So for that, I had to dish out $6, 000. Two years after that, foundation problems again, and this time, I had to pay $14, 000 to fix. Five years later, I sold it for the same amount that I bought it for minus $25, 000 in repairs. So to me, there's nothing like buying a brand new house.

[bidof]

Thatch I think you made this video for me! I work 40+ hours a week and I’m analyzing a 1m property that is almost turnkey. Needs a little renovations but I’ve been weighing options with renovating a whole 4 unit property. Thank you!

[alejandrocastillo]

This is a wonderful video. So insightful.

We’re on our 2nd fixer upper now and I’m glad to see that we’ve made the 30% sweat equity happen, though we bought cash.

I’m very very interested in the finance approach for it, as the fact that you used double financing (i.e. commercial first and then mortgage) just opened 😮my eyes to the fact that we could be cycling the money much faster.

Will definitely re-watch all of the videos to understand how that financing part would work

[dianedomina]

I've dabbled in flipping houses starting with 2 bed/1 bath less than 1000 sq ft so my material costs are low. Ive just sold a 3 bd/2 ba $700k house with $500k profit!!

[BobHarvey.]

I’m 69 living on $990 per month plus part time income from food delivery so I don’t have money. My time is consumed with working the deliveries every day. In my station in life should I try becoming a real estate investor/landlord or should I just invest in REITs?

[DirkChristian-we]

Do you think it's a good time to consider selling some stocks, or is it better to hold onto them for the long term? I’m considering rebalancing my $2M portfolios, So I'm curious about the best strategies to invest this year.

[spaceshipmoon]

Not only wrong but dead wrong! On a $1m home purchase in Seatle your Property Taxes and insurance are like 13K per year NOT $400 per month but more like (($1100 per month)). Make a home purchase and you get reamed by the NEW assessed value and 1% annual tax rate.

[almantini]

Great Ty how do I learn how to figure out the rehab costs?

[olivercollins]

Turnkey all day. Not even a debate. Turnkey turnkey turnkey. Unless you own your own construction company.

[RamonLukeman]

Hit 400k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months.