Benefits to Investing with a Turnkey Company

There are a lot of benefits to investing in turnkey properties. Scouring the internet will provide a person with many articles listing these benefits, some will be the same, some will be different, but all share the idea that turnkey can be very successful and is something everybody should consider. One article that really sticks out about turnkey is, “The 7 Benefits of Turnkey Real Estate.” It is published on howtobuyrealestate.com, a very good website with many articles about real estate and real estate investing. This article, written by Larry Arth, goes through the benefits of investing with a turnkey company. The first benefit is the fact that turnkey companies have a full investment system, meaning we handle the acquisition, the rehab, the tenant placement, and the management of the property. At KC Metro Homes, we also follow this layout. We have an acquisition team, two construction teams that we work with on adding value to the property, and KC Metro Property Management, that handles the tenant placement and property management.

The second benefit of turnkey is the benefit from economies of scale. This means that the turnkey companies make money from the sale of the houses and the ongoing management. This is listed as a benefit because the multiple forms of revenue allow companies to keep their expenses low and sell investors quality homes that will make them money. A third benefit is in house repair crews. Having these professionals in-house allows companies to pay for the labor themselves and only charge the investors the price of the repairs made. Having in-house instead of out-of-house means less money for the investor to pay and less money for the company to pay. The fourth, and in my opinion the greatest benefit, is a thorough knowledge of the market. This is especially important for out of state investors. Those who work for turnkey companies are going to live in the area and possibly invest there themselves. Investors should be able to trust that the company knows their market inside and out. At KC Metro Homes, we like to take investors out and show them our property, the neighborhoods we buy in, and everything else an investor needs to know. Our goal is to be transparent for those who work with us and to be able to show off our knowledge of the Kansas City market.

Another benefit of investing with turnkey companies is the relationships they have with other people in the business. This includes real estate attorneys, real estate agents, accountants, local lenders, and more. The last two benefits are an interest in the success of a person’s investment portfolio and a turnkey business existing in the best markets. Turnkey businesses want an investor to succeed because that is how their business succeeds. They have a very good reason to want those who invest with them to see a profit because that is how they make theirs. The majority of turnkey businesses exist in markets with a good investing climate. If they didn’t, they wouldn’t have much of a business. While turnkey investing can be done on one’s own it is much easier and a more reliable option for busy or out-of-state investors.

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