Security is something we all value. We want to live our lives without having to worry about money. Whether that means having the confidence to pay for unexpected expenses or the ability to take a vacation worry-free, we all crave that kind of comfort and confidence in our personal lives.
For many of us, the solution is to invest. Most commonly, we turn to the stock market, whether through robo-advisors or a flesh-and-blood broker. We all know, however, that the stock market carries with it a fair share of risk. When you can’t control the outcome, it’s more difficult to mitigate your risk and come out with real wealth.
Investing in real estate has grown increasingly popular in the last decade or so. Though people have been building wealth through real estate for centuries, it is more accessible than ever in today’s market. Real estate investment still carries its risks, but you are far more in control of your outcomes as the owner.
When it comes to real estate investment, it’s tough to go wrong with a turnkey strategy. For new real estate investors, there’s no better way to build passive wealth.
Here’s why turnkey real estate works regardless of market conditions.
4 Reasons Turnkey Real Estate Works in Tough Circumstances
You don’t have to compete.
One of the frustrations many real estate investors face is in the very first step: acquiring a property. Markets that are “hot” typically have bidding wars and inflated prices that make you wonder how worth it this whole investing thing is. Real estate investors look for certain profit margins. Too-expensive properties can break the model, as can the arduous process of competing with multiple bids on the table.
Turnkey real estate investors don’t have to compete. You’re not on your own when it comes to identifying and acquiring an investment property. Instead, your turnkey provider (such as ourselves) has already purchased properties in ideal locations. You’re not throwing elbows against other homebuyers or investors. By buying from a turnkey provider, you have the assurance that the property won’t be a waste of time and money. Not to mention you save yourself huge home-buying headaches!
Your markets are properly vetted.
For real estate investors, diversification is one of the key qualities in a successful portfolio. Investing across multiple markets hundreds of miles away can be intimidating for investors. After all, how can you really manage your risk from so far away? Investing out-of-state is too risky...right?
Not when you’re a turnkey investor. Because your turnkey provider has teams in these markets and experience buying and managing property in these markets, you can trust that they have the experience you can lean on. For Memphis Invest, our more than fifteen years in the business has allowed us to identify prime turnkey markets and build a system that not only expertly manages properties but prioritizes service to both residents and investors.
Every investor has to start with a solid foundation. Our investors know that we not only offer thoroughly vetted markets but key properties within those markets. For the investor, this means little room for error in those first crucial steps.
Buy-and-hold transcends market woes.
The real estate cycle can make us worry. The economy at large can cause anxiety. One of the significant advantages of turnkey real estate investment is that it falls into a buy and hold strategy. This means that you intend to hold onto a property for the foreseeable future. You buy it and hold it both for appreciation and passive rental income.
The real estate cycle is always in flux. For many investors, certain times in that cycle can mean a loss of profitability and opportunity. Buy and hold investors, however, have the luxury of waiting through these seasons. Because you begin with solid markets, you know that the dips and lulls will pass — and you still come out with a strong investment portfolio.
Check out: The Real Advantages of Buy and Hold Investing!
You don’t have to be an expert.
Why doesn’t everyone invest in real estate? For a lot of people, the prospect just seems too daunting. “I don’t know anything about real estate. What if I mess up and lose all my money? What if I get sued?”
The beauty of the turnkey model is that you aren’t stuck to struggle through your own inexperience. This season is one of the most trying times in the life of any investor. Sometimes, just getting things off the ground seems like too much to manage. The beauty of turnkey investing, however, is that you never have to rely solely on yourself.
You can learn and grow into a savvy, experienced investor without having to make big mistakes. Instead, you learn from your turnkey partner. Their careful management and direction provide you with the framework for success. You don’t have to wait to invest until you know it all — instead, you can jump in and learn on your feet...without risking your investments.
Build your wealth with turnkey real estate.
