Who Should Invest in Turnkey Properties?

Who should invest in turnkey properties? I could just answer “anyone and everyone” and leave it at that, and it would be a valid response. However, it wouldn’t make for a very good blog post, would it?

But the truth is, a turnkey is a viable option for any investor. New, experienced, young, old, local, remote, rich, not rich. Truly, turnkey provides an investment avenue that appeals to everyone, regardless of age, experience level or net worth.

The turnkey model is unique in that way. With turnkey, all the hard work has been done for you. The property has been found, the rehab work has been done, and the tenants have been screened and selected. At many turnkey companies, even the management has already been lined up. All that’s left is to match the property with an interested investor who’s ready to start making money.

While I could wax poetic about the merits of turnkey all day, my purpose here today is not that. I really do want to answer the question “who should try turnkey investing?” Yes, it’s true that anyone can have a successful run in turnkey investing, but there are a few groups that stand out as ideal candidates for this type of investment strategy.

The Newbie

Turnkey is particularly suitable for new, inexperienced investors who are just getting started in the business. Real estate investing can be a complicated game and one that’s fraught with risk. It takes someone who truly understands the market, investing strategies, management practices, and more to be successful at it. When you’re new, all of this is foreign. You’re still learning how to do some of the basics, like a pick a good property and run all the calculations to determine if it’s a worthy investment. Your inexperience alone increases your risk. With turnkey, the provider is well-versed in property investment and has the experience to provide you with all the information you need, along with sound advice for the duration of your ownership.

The Remote Investor

Thanks to the internet and other forms of technology, remote investing has become easier than ever. Investors are able to explore markets other than the ones they live in, which is great if their local market is underperforming. However, investing in another state can make property selection and management a bit trickier than, say, investing in a house two streets over. Obviously, visiting the property in person or dropping by after it’s rented to check on things become much bigger obstacles. This is where turnkey can help. These providers know their local markets inside out; they know which neighborhoods have the best properties and therefore the best cash flow. They are your local presence and your boots on the ground when you’re miles away.

The Full-Time Employee

Real estate investing is often referred to as “passive income,” but I’ll be honest, the job is anything but passive for investors who stay involved. If you’re working full-time already and thinking of managing a rental property on top of that, I would ask that you reconsider. Why? Because the best investors know that their investments take just as much time as a 40-hour per week job. Think of all the work that goes into investing in even just one property: learning how to invest, finding a property, researching it, buying it, rehabbing it, marketing it, screening tenants, dealing with maintenance, handling tenant issues, and on and on. If you’re already working a full-time job, exactly when do you plan on doing all these other things? Again, this is where turnkey can help. All of this is done for you, and it’s done by an experienced and knowledgeable group of experts who can help ensure your success.

“I Don’t Know and/or I Don’t Care”

The last group I would recommend using the turnkey strategy are those folks who want to invest, but they’re not particularly interested in learning the particulars. They’ve got the capital and are ready to buy, but they have no desire to spend the time taking on a larger role. They simply want that passive income I mentioned in the last section. And since they have the money to do it, they really can just sit back and enjoy the rent checks coming in while their turnkey provider takes care of everything else.