Investing in real estate should mean that you’re earning passive income. You’re not breaking your back to get your paycheck—granted, some investors like to get more involved: flippers, wholesalers, even landlords. But we’d argue that these are really jobs, investments of time as much as they are investments of money.
AND they take up a lot of time. For the investor looking to earn passive income, however, you know that you can be passive. Turnkey real estate investing, for example, offers an avenue where you don’t have to be involved in the daily details of your investments.
The best Turnkey companies, well - let me be more frank here and say that Memphis Invest is one of only two companies that do this - will have a fully dedicated team to support investors with timely updates on their portfolios. Those updates are important in keeping that investment as passive as possible.
Real estate investing does not have to be hard and it does not have to be time consuming, but much of what makes it passive is that team. If you've picked the right team, then they will make you feel comfortable with the passive nature of this investment and help you understand a key point.
Even the most passive real estate investments take some work.
Turnkey real estate is about as passive as passive gets. But if you want to be successful in turnkey real estate, there are some things you still have to do. There are some places you’re going to have to get in there and get your hands dirty.
3 Areas of Turnkey Real Estate That Require a Hands On Approach
1. Developing and Executing Your Strategy
This part should be a no-brainer, right? Your strategy is yours. It’s personal. Yes, you can get advisors and strategists on board, but they can’t map out your future for you. Only you can decide where you want to be and what you want out of your investments. Where do you want to invest? What kind of properties do you want? What kind of bottom line do you want to see? How do you want your investments to grow over time? What kind of future do you want for yourself? What’s the right way for you to achieve it?
You may not be dealing in the daily details of your investments, but capturing and directing the big picture? That’s up to you. Direct your investments. That’s the only way they’re going to grow.
2. Vetting Your Turnkey Company
Unfortunately, not every turnkey real estate company is awesome. Because those investing in turnkey real estate are usually investing out-of-state, you have to be especially diligent in the vetting process when selecting what company you’re working with.
Do they have a proven record of success? Do they offer reliable, reputable property management services? Do they have a vested interest in your success as a real estate investor? Your partnership with the right company is absolutely crucial. Getting scammed can be devastating to your finances, not to mention the emotional toll it can take.
Practice due diligence. Don’t allow a disreputable or inexperienced company to ruin your investments or your finances. There are great companies out there who want to be equal partners in your success!
3. Choosing Excellence
Remember: at the end of the day, you’re the one making the big picture decisions. You’re picking the property managers. You’re selecting the properties. You’re choosing partnerships. Ultimately, you’re shaping your investment future. It’s in your hands. You can always look for cheap. You can always cut corners. You can go for quick fixes.
Or you can choose quality. You can spring for excellence—in properties and in services. That’s not saying you have to shell out top dollar for everything. It’s just saying you can strike a balance that builds a reputation that says you put value in the right things.
When you build equity in services and properties that will give value to your investments and your tenants, you’re going to build up your reputation and set yourself up for long-term, lasting success.
That’s something that’s in your hands. Instead of taking the easy way out, you can choose to be an investor that truly stands out in excellence.
Break it down.
Aiming for cheaper properties doesn’t really work. Yes, you can rehab them. But that means a longer road to having a tenant and increased costs to improve conditions to increase the rental values. And think about it—does a cheap property in subpar condition at a low price point really attract the tenants or cash flow that you want?
The same goes for property management. Yes, you can save a lot every month if you go with a cheaper company or manager—but the difference in service will be night and day. They’re the face of your business and they take care of your investments and your tenants. Good property management is worth the premium.
As a real estate investor, only you determine the trajectory of your investing future. It starts in your hands. So make sure you’re giving the reins to the right people.