question about turnkey company

[Sinil Kim]

I am thinking about buying a property thru a turnkey company.

But I am wondering Why Do turnkey companies sell properties instead of holding If it's profitable?

Thanks

[Ali Boone]

Different business models. Same difference between why someone buys a buy-and-hold rental property versus flips. Turnkey providers are just glorified flippers, flipping in bulk rather than just individual properties. If they held onto all of their inventory, they would quickly run out of money to reinvest into more properties. By flipping them off, they can snowball the whole thing and keep it going for a long period of time.

Most turnkey providers I know do end up keeping some for their portfolios, but otherwise their entire model is based off that of a flipper, not a holder.