9/20/17 | Diana Eastman
Wouldn’t it be great to reap all of the benefits of owning a real estate investment property without having to “sow” the time commitments, money, and labor? If it sounds too good to be true, maybe you haven’t considered turnkey properties.
Turnkey properties are one of the easiest ways to get started in the real estate investment world. Everything that usually comes with a successful investment home is completed ahead of time. This includes finding the properties, fixing them up, and even finding tenants. This is a dream situation for new investors because it gives them a chance to quickly generate a steady stream of passive income as they learn the basics of real estate investing. Once you’ve worked with a few turnkey properties, you may be ready to branch out and do all of the hard work on your own. However, many investors who don’t have much time to spare choose to stick with turnkey investment properties for five good reasons:
It Saves Time
Successful real estate investors didn’t just wake up with a handful investments with high returns and a booming bank account. They started small, carefully analyzing the market and scouring neighborhoods for good deals. Getting started in real estate requires a time commitment, something many busy professionals just don’t have. After you find the perfect property, there are countless hours needed for fixing it up, and then even more time is spent marketing and finding tenants. Starting with turnkey properties frees you from a lot of the time requirements traditionally associated with real estate investments. Working with turnkey properties basically delivers a property to you on a silver platter. You immediately start making money without sacrificing time with your family, friends, or from your current job. Passive income isn’t really passive if you’re investing all of your time and energy to make it work. Although managing an investment property is not completely laissez-faire, it takes a big chunk of time and stress out of the process.
You Don’t Have To Be (Very) Handy
For people who struggle in the DIY and construction skills department, turnkey investing is a dream come true. Because the homes are already rent-ready, there is very little rehabbing, building, or demo required. Owning real estate usually requires at least a basic knowledge of how a home operates, but turnkey makes it very easy for first timers to get involved. Since the home is already built and ready for renters to move in, your lack of handyman skills will not deter you from being a profitable turnkey investment investor.
Cash Flow Starts Right Away
Getting involved in house flipping is a popular investment strategy that has proven very lucrative for many investors. However, most investors will tell you that it took a while before they made a profit. The time and money spent flipping houses can result in delayed profit for many investors. With turnkey properties, however, you start making money right away. You don’t have to cover costs for marketing or screening tenants or maintenance. From day one, you start seeing a positive cash flow. Of course, you’ll still end up paying for repairs on the home, but since most of the issues have been taken care of before you bought it, you’ll see fewer problems in the future.
More Options For Location
One of the best things about turnkey properties is that they don’t require you to be physically near the property for it to run successfully. Since the home is already built, rehabbed and sometimes occupied, you don’t have to worry about being close by all of the time. This allows you to look for properties out of the area in which you currently live. Areas like Jacksonville and Indianapolis are excellent areas for real estate investments. In these regions, you can buy great properties in highly desirable areas for extremely low rates. This allows you to earn a higher ROI than in other areas. Turnkey properties allow investors to invest in properties in these profitable areas even if they don’t live nearby. Investing in turnkey properties opens up your options for where you can comfortably and conveniently invest.
It’s Just Easier
Real estate investing can be a very profitable investment strategy, but it can require time and money upfront to get it going. With turnkey properties, all of the work is done for you, and you can start benefiting right away. When you’re first getting started, all of the details and requirements can seem overwhelming. Turnkey properties take care of all of the moving parts so you can continue living your already busy life while earning a passive income in the process. Smart investors work smart, not hard. And what’s smarter than earning revenue from a property you’ve had to spend very little time or money on?
As with any investment strategy, there always risks. It is important to do your research and consider which investment options make the most sense for your particular situation. Turnkey investments make great first-time investments and can be a successful first step in the real estate investing world.