Sign up for our Newsletter

3 Warning Signs of a Bad Real Estate Investing Firm


It seems that more and more investing firms are throwing around the term “turn-key rental property” with no real follow through. They hope to attract buyers (or investors) under false pretenses. They believe all you have to do to provide a turn-key property is simply buy an apartment, rent it out and put it under management. They feel this will bring in investors. Not so.

This is just one of the warning signs you’ve found a bad real estate investing firm.

Here are three others:

  1. No track record: If you find that the real estate investing firm is inexperienced, keep in mind that they are using your money to practice and learn. If they don’t have a solid portfolio, it’s hard for them to know what to do. It’s a safer bet to go with an experienced, established firm.
  2. Subpar renovations: If the firm doesn’t fully renovate the property or they cut corners to save money, it will cost you more down the road. Make sure the company upgrades to code so you don’t face repercussions later.
  3. Vacancy guarantees: Remember, there are no guarantees in real estate. The right real estate company will understand the market and know how to position the property. There won’t be guarantees but they will be able to offer you some educated projections.

When you are in the market for a real estate investing firm, remember Crecco Companies has relationships in strategic markets with local bankers, lawyers, brokers, property managers and construction professionals. We have a complete local team in place to assist in transaction analysis and execution pre- and post-closing.

Crecco Companies is a three-generation, 60-year-old real estate firm who has been involved in land development, new home construction, residential remodeling and property management. Need someone you can trust? Contact us today.

Submit a Comment

Your email address will not be published. Required fields are marked *

eight − four =