5 Reasons Why Turnkey Investment Makes the Most Sense
One of the best things about investing in real estate is all the different ways you can do it. You can buy distressed properties and flip them for a quick sale, or you can hang on to them and rent them out for passive income. These aren’t the only two strategies, but they are two of the most popular. Another method that’s being used more and more is turnkey investing. This is where an investor buys real estate owned by a turnkey company, rather than an individual seller. Read on to learn more about this investment strategy and why it’s the best choice for so many investors:
- Work with a knowledgeable advisor local to the area. One of the toughest parts about investing is knowing when and where to invest. Unless you’ve got a crystal ball, you don’t know what the future holds, and it can be difficult to predict how a property will perform over the short- and long-terms. A great turnkey provider can make a decent prediction, though. These folks have the experience and local knowledge necessary to help you make a solid investment, and when you work with them, you get to share in all they know. This can eliminate many of the investors’ questions right off the bat, as a good turnkey provider will be transparent in their practices and information-sharing, giving the investor a clear look at what they’re buying into.
- There’s no need to rehab. This is one of the best parts about a turnkey investment – all the heavy lifting has already been done! It’s the turnkey provider’s job to rehab and repair their properties before selling them to investors, which is what makes them turnkey. This represents a big savings in time and money for the investor, not to mention a ton of stress. Fixing up a property can be an extremely expensive and time-consuming endeavor, so having someone else take care of this for you – especially if you don’t live in the same market – is a huge advantage.
- Tenants are already in place. Another big perk? Many turnkey investments are already rented, or they’re in the process of being rented. This means immediate income for the investor once he or she takes ownership. It also eliminates the hassle of marketing a property to secure a tenant, and then performing all the necessary background and employment checks to ensure you’ve got a good renter. Again, big and time and money savings here.
- Property management is often provided. Guess what happens after you buy a rental property? That’s right, you get to take care of it! That means handling any repairs that pop up, performing regular maintenance, and being on the receiving end of those dreaded middle of the night phone calls from your tenants when there’s emergency. With a turnkey provider who also offers property management, you don’t have to be that person. Instead, that job falls to the property manager, who will handle everything from tenant complaints to rent collection.
- It’s truly a passive investment! Out of all the investment strategies, turnkey is the most passive. Your role as the property owner is fairly hands-off, and you’ll likely only be contacted in the event of a major repair where a decision must be made. Other than that, your time is your own! This is why turnkey is especially suitable for those who are working a full-time job, or who want to free up their time so they can spend it scouting other investment opportunities.
Simply put, turnkey investing just makes sense for most people. It’s a proven strategy that comes with the confidence of regular, hassle-free income – and you just can’t get that with other types of investments.