Turnkey Rental Properties As A Business Model

[Alex Z.]

I have been researching turnkey rental properties as a means to get into real estate. I know there are reputable companies out there (some of them are on here). I know that they serve a need in the market with offering passive real estate investors a way to buy and hold real estate. 

But what I am struggling to comprehend is from the turnkey companies perspective what their incentive is for offering up cash flowing properties. It seems most of the companies own real estate in the same markets they are selling it. 

I sound cynical saying all this but here is what I am struggling with...

• These companies are finding below market value deals and putting rehab money into them to the point that when they sell I am paying close to retail?
• Are they making money by referring me to brokers, lenders, PMs, etc? 
• Why aren't they just keeping these awesome deals for themselves?

I guess I am struggling to understand why, if these properties are good investments, are they offering them up instead of holding them?

Would someone with more experience be willing to shed some light on my mental block here?