Jack Gibson and Jeff “Shecky” Schechter own High Return Real Estate, a turnkey real estate rental business. They provide a unique, full-service product. Working backward from a profitable return for their clients, they source, spec, rehab, inspect, and fully tenant their products before taking them to market. After their properties are sold, Jack and Shecky also manage the property, making these rentals a completely passive source of income.
In this episode, Jack and Shecky share with Jonathan how they built their business with patient marketing efforts, targeted the ideal customer through SEO, and cultivated trust through a transparent process. Whether you’re interested in investing in turnkey real estate properties or looking to build your own real estate business, this is an episode has valuable information for you.
How to find the ideal customer for turnkey real estate investments
With a background in social marketing, Shecky uses search engine optimization, or SEO, to help their business organically come up in search engines without having to pay for an advertisement. For example, he wants High Return Real Estate to show up when someone searches “real estate investment Indianapolis.” This has proven to be a BIG DEAL for finding the ideal customer. The people finding High Return Real Estate in this way are already actively typing keywords and looking for real estate investment opportunities that High Return offers.
Shecky says to think: where is the investor we want consuming content? He says investors will never be found on Instagram. He has seen some leads from Facebook. But, his ideal customers for turnkey real estate investments consume content by searching on Google, watching Youtube videos, or listening to Podcasts. He shares that your company must have good content on these platforms for the long term. Build content and stay consistent!
The process: the story of a house from beginning to end
Jack and Shecky do all of their turnkey real estate business in Indianapolis. They have good relationships with wholesalers and hedge funds. Because of this, they are often able to purchase homes before they hit the market. High Return always pays cash to expedite the process. Then, they bring in a 3rd party property inspector to find out if anything is wrong with the property. The property is rehabbed and inspected again. The report from this inspector is always shared with investors. The property gets rented to get cash flowing, and is then sold to an investor. The homes always come with a full 1-year warranty and are managed by a professional property management company. Jack and Shecky share that their company has lots of checklists to go through, and they have learned over time to never cut corners.
Building a turnkey real estate investment business
Jack and Shecky point out that their focus isn’t simply on rehabbing real estate, but also on building the machine of their business. Their business practices support the rehabbing of real estate. They both agree that division of labor is a key element. Shecky has skills that Jack doesn’t and vice versa. Jack worked with real estate and sold rehabs previously, but he wanted a digital marketing platform to scale business. There was a need for a turnkey solution. Shecky brought skills for creating a serious, professional website, good SEO work, Google keywords, and Facebook ads. They built a great team around them to get the job done. They put the right people in the right seats, and created systems as their business grew larger.
Why targeting the right property is crucial
High Return Real Estate is built on providing investors with double-digit returns. Jack and Shecky use this end goal to help them purchase, rehab, and sell the right properties. They focus on homes that need between $5-$10k worth of work on them. They tend to shy away from any home that needs more than $20k in work for several reasons: they have a high demand for homes and need work done quickly, you tend to find bigger issues when you dig into the bones of a house, and the math simply does not work to get a good return for investors. Jack and Shecky say to fall in love with the data, not the deal! Without the right property, they cannot provide investors with the best return.
In This Episode Jack Gibson and Jeff “Shecky” Schechter say…
- [2:24] Who they are and what they do
- [5:05] Who buys their turnkey products?
- [8:05] The process: the story of a house from beginning to end
- [12:08] Building the business
- [20:11] High Return Real Estate’s marketing
- [23:48] Advice for those just starting out
- [26:36] What makes their business different
- [35:14] The customer intake process
- [37:54] What properties they choose to target
- [42:48] Final thoughts and advice to others
Resources Mentioned In The Episode
- Jonathan@MultifamilyLaunchpad.com – Learn to be an asset manager and Investor
- Bellwether Enterprise(sponsor) – contact Will Oldham firstname.lastname@example.org