Exit strategies for turnkey properties

[Julian T.]

Hello, I am considering purchasing turnkey rentals from reputed companies like MemphisInvest (Memphis) or Profitfromrentals (Chicago), however I still do not see or understand what exit  strategies they offer in case I wanted to recover my equity investment (I know the goal is passive income, but it is always good to have an exit option should you need it), usually these properties are in city areas where their market price is higher than the median around, and if I wanted to resell them it would probably be hard to do so, or I would be competing with the same companies selling their own turnkeys in the area. In either case it seems hard to recoup your investment should you want to, does anyone have any experience or advice on this? Thank you very much!

[Chris Clothier]

Originally posted by @Julian T.:

Hello, I am considering purchasing turnkey rentals from reputed companies like MemphisInvest (Memphis) or Profitfromrentals (Chicago), however I still do not see or understand what exit  strategies they offer in case I wanted to recover my equity investment (I know the goal is passive income, but it is always good to have an exit option should you need it), usually these properties are in city areas where their market price is higher than the median around, and if I wanted to resell them it would probably be hard to do so, or I would be competing with the same companies selling their own turnkeys in the area. In either case it seems hard to recoup your investment should you want to, does anyone have any experience or advice on this? Thank you very much!

 Good Turnkey companies are going to be in high-demand, which means you should be able to work with them to re-sell your properties to other investors through their company.  Are they going to want to make a profit?  Yes.  That is the point of being in business, so expecting them to buy it back at full price as an exit strategy is unrealistic.

But, that does not mean that they would not be willing to help you exit the property with as little cost and expense as possible.  If it were an emergency, then I would think most companies not just ours or the other company listed would be willing to help quickly and at the least amount of hassle to move the property through their company.

Like Curt said, this is a long-term strategy and not one that a buyer should look to make if they might want to sell quickly.  There are plenty of other investment strategies for that and buying Turnkey is not the most ideal.