What's the deal with Turnkey Companies?

[Andy Gross]

Hello BP Nation. I apologize for the Seinfeld-esque question, but what's the deal?

I see advertised properties that meet the 2% rule, or come close, and they claim to have a tenant in place, management ready, etc, and all you have to do is come up with the cash to buy the property that is generating upwards of 20% cash-on-cash returns assuming a 20-25% downpayment. If it's such a good deal, why is the Turnkey company selling it? Is it just to raise capital? Are Turnkey companies just another type of flipper, buying distressed assets, cleaning them up, placing a tenant and selling for a profit? What's the motivation?