Turnkey Truths: 3 Things that WILL Happen When You Invest in a Turnkey Property
Full disclosure: I am a turnkey provider. I love the turnkey strategy and I think it’s superior to other types of investing. I’ve seen lots of people find success using this method, and I stand by it. However, that success is dependant upon two factors: 1. The investor making smart, educated decisions, and 2. The turnkey provider being a reputable, experienced company, and not some fly-by-night scammer.
Because yes, those exist. It’s one of the sad truths about our industry, but I think it applies to virtually every industry out there, too.
One of the big unknowns for first-time turnkey investors is what exactly will happen after they buy a property. While everyone’s situation is unique and therefore different events will occur, I have found 3 things that to happen to just about every turnkey investor I’ve worked with.
Here’s a good idea of what you can expect after buying a turnkey rental property:
- You will have an entire team of diverse professionals on your side. One of the best parts about going down the turnkey path is the people. Your turnkey team will include your main point of contact, who is another investor just like you, as well as a full support staff of property managers, contractors, realtors, and others who are on your side and want to see you succeed. Networking is a huge part of success in this business, so connecting with these folks – and likely even their connections – is a good way to build your network, which will help you now and in the future.
- You will save time. Real estate investing can be a lengthy process. There’s a lot to do to find the perfect property, starting with finding the perfect market. Different areas of the country perform differently, and lots of factors combine to create the right environment for a successful investment. After researching which markets are best, then you have to narrow your focus even further, down to the neighborhood level. After that, it’s onto finding a good property that fits your needs and investment plan. Once you’ve found one, it’s time to buy it, then make any necessary repairs, then market it to tenants, choose a tenant, figure out how you’re going to handle property management, and this list just goes on and on, people. With turnkey, you don’t have to worry about all these; therefore, you save TONS of time. All you really need to do is choose a market, choose a good turnkey provider, and then choose a great, cashflowing property from their inventory. This takes far less time than what you would spend if you don’t work with a turnkey provider.
- You will have immediate cash flow/passive income. The other huge thing that turnkey properties have going for them is the immediate income they provide to investors. Because these properties are fully rehabbed and already tenanted (or very soon to be tenanted), the moment you buy it, you’re collecting rent on it. Plus, if the turnkey provider has offered property management, as many of them do, it’s a truly passive form of income as they are handling most of the day-to-day tasks associated with owning rental property. Your only job with the property is to be available to make any major decisions that arise, such as repairs or rent increases.
See? I told you turnkey investing was the best! There are some truly amazing benefits associated with this investment strategy, and the 3 outcomes I described above have become true for all the investors I work with. Again, it’s up to you to find the right market and turnkey provider, as well as choose a great property that aligns with your investment plan, but beyond that, it’s honestly one of the easiest and most convenient ways to see your investment dreams realized.