What is Turn Key Investing and why Minnesota is a Great Market For it!

Turnkey investing gives individuals the opportunity to purchase, hold, and grow a real estate portfolio with a hands off approach. The Midwest, and states like Minnesota, are the envy of the county when it comes to investing in single family homes. The Midwest features the best purchase price to rent ratios in the country. Also, Minnesota is blessed with a growing population, a diverse workforce, and home to the 2nd largest economic center in the Midwest according to the Star Tribune.

Owning a home used to be the American Dream. We lived in a house for years, we paid it down over decades, and we had a party when the house was paid off. Then, we enjoyed the excess money in our pocket and proudly proclaimed to anyone that would listen that “our home” was paid off. Today, The dream is still alive! However, for the most part, the dream belongs to the investor. If we are becoming a “renter nation” that means we are also becoming a nation of wealthy landlords in training. Turn Key investing allows investors to skip the training.

The turnkey process starts by selecting a suitable property. This is a task best suited for someone who has both knowledge and experience in the market. As the old real estate saying goes, “you make your money when you buy”. After a potential rental property is identified it should be evaluated. How much cash is needed to bring the property up to rental condition? How much rent will the property bring? What will the monthly expenses be? What are the long term capital expenditures that should be budgeted for? What is the long-term outlook for the neighborhood? These are all questions that an experienced turnkey operator should be able to answer.

Acquiring the property is the easy part! Property management is the secret ingredient to operating a successful portfolio. A great property management company should be licensed, experienced, and have a team. Managing a rental portfolio is not a one person job. A successful turnkey operator will have reliable and affordable contractors that they can call when problems arise. A successful turnkey operator will use professional property management software. A successful turnkey operator will charge a fair price for their management services. Remember, we are in real estate investing to make money for ourselves and not someone else. The most important part of selecting a turnkey operator is to make sure that you do business with someone you can trust.

The benefits of owning real estate are numerous. It takes a tremendous amount of time and knowledge to select and operate a real estate portfolio. This is why turnkey services can be the ideal solution for the busy investor. It gives the investor 100% ownership and control of their asset. This ownership and control makes turn key investing a superior alternative to REITS, syndications, and partnerships for many investors.