Why is Turn Key Investing the Way to Go?

There are all different types of real estate investors out there. Some like to buy a run-down property and get their hands dirty fixing it up, while others are more interested in a hands-off approach. If this is more your style, a turnkey property is the answer you’ve been searching for.

Turnkey Defined

Let’s start with what turnkey investing even means. This is an investment strategy that relies on a third party to help investors secure and maintain an investment property. There are lots of different turnkey companies, and each has their own methods for working with investors. Some help investors scout properties, but then let the investor handle the rehab and securing of tenants. Others, like us here at USREEB, are full-service companies, taking care of everything from renovations to marketing to property management.

The Investor’s Role

With a turnkey property, the investor’s role will vary depending on the company they’re working with and their own investment goals. Some investors prefer to be involved in every detail, right down to choosing paint colors. Others, however, like the idea of investing from a distance. For these folks, it’s all about putting up the cash to buy the property, but then letting someone else handle the heavy lifting to get the cashflow going . As a turnkey investor, your role is what you make it. If you want to be in the know on every detail, great! But if you don’t, that’s fine too.

Advantages of Turnkey Investing

There are a number of great benefits that come with choosing a turnkey investment strategy. Here are 5 of them:

• Option to be a hands-off investor. Turnkey investing is the best way to take a hands-off approach. When you work with a turnkey group, your involvement can be minimal, if that’s what you want. For many investors, this is preferred because they’re busy managing other things and simply don’t have the time, but still want to enjoy the cashflow and other benefits that come with property ownership.
• Invest from a distance. With a turnkey property, there’s no need for the investor to live in the same city, or even country as the property they own. Working with a turnkey group allows investors the freedom to invest from afar, comfortable in the knowledge that their property is being professionally managed and maintained.
• Insight to a particular market. Most turnkey companies are experts in their chosen markets, which allows them to provide valuable insight to investors. Sure, you can look up local housing info, job stats, and even crime rates for a particular area, but turnkey groups are able to dig deeper. They know why this neighborhood is better than that one, or what’s on the horizon that will be bringing more people to a certain area.
• Marketing potential. Hands down, a turnkey group will be able to market a property better than you. Because they handle dozens of properties every week or month, these groups are marketing pros that know how to effectively move a piece of property using different methods of outreach.
• Professional management service. The work isn’t done when tenants are in place – in fact, in many ways it’s just beginning! Managing the property falls under the jurisdiction of the turkey group, who usually has an in-house management group that handles rent collection, regular maintenance, and everything else that goes along with property management.

Turnkey investing isn’t everyone’s cup of tea, but it’s the preferred strategy for thousands of investors. With a turnkey property, investors are granted a great deal of freedom while still enjoying all the benefits of owning real estate.