Turnkey property investing is a term loosely used to define an investment strategy that lets the investor buy, rehab, and manage a property through a third party. This makes the strategy much easier for part-time investors or those with out-of-state properties.
Unlike the traditional way, investing in turnkey rental properties eliminates all the legwork. It is the perfect investment strategy for individuals who want to invest in real estate but do not wish to leave their lives in the city or do not have the time to actively manage their properties. On top of that, here are other advantages of investing in a turnkey property.
Most turnkey companies offer a full range of services, from the purchase down to management and maintenance. They have the resources and manpower to handle a project from start to finish. They are also adept at handling contractors, managing costs and cash flow, and attending to tenants. The purpose of this is to take the grunt work out of the investor’s hands and still deliver a good return.
Extensive Market Knowledge
Good turnkey companies are also likely to have a better understanding of the market than you, especially if you’re not from that area. They have in-depth knowledge of the area more than you ever could learn through research alone.
Additionally, most turnkey providers have their own repair crew or work closely with vendors that will always be ready to fix any problem with the property. They will also make sure that there is always someone available to assist your tenants if they need anything.
There are many turnkey real estate companies in America, but they all differ in the services they offer and the fees they charge. Some will do everything from buying, rehabbing, and renting the property before they sell it to you, while some only handle purchase and property management tasks.
Choosing the traditional route of investing in a rental property may be more stressful and costly on your end. However, if you’re going to hire a turnkey provider, you still have to do the same amount of research and planning to yield better outcomes.