So you took the plunge. You’re officially a real estate investor! First of all, congratulations. You’ve begun your journey towards financial security — and freedom — for life. If you’re like most new investors, you likely feel nervous along with excited. After all, you just made a massive financial commitment. What if it doesn’t work out? What if you do something wrong? You don’t want to ruin your investment!
If you want to lay the successful groundwork for your investing future, here are a few things every turnkey investor must do.
4 Crucial Steps to Take in Your First Year as a Turnkey Real Estate Investor
One of the first things you have to remember about turnkey real estate is that you, as the owner, are not responsible for the day-to-day operation of your rental properties. You don’t even have to worry about getting into bidding wars and finding the best prices for new properties. These are things that your turnkey provider handles with their experienced team of property managers, renovators, and advisers.
Your properties are ready for you — all you have to do is take the plunge. That said, turnkey real estate investment, though a form of passive investing, does demand your engagement as the owner. If you want to truly succeed in turnkey real estate investing, you must do these four things in your first year as an investor.
Cultivate your relationships.
Nothing is more valuable to a turnkey investor than their relationship with their turnkey company. At Memphis Invest, we place the highest value on our relationships with our clients. For a successful investment career in the long-term, it’s crucial to be close to your turnkey adviser and company.
We prioritize this relationship not only through our dedication to a standout customer service experience but in laying the groundwork for long-term relationships. For investors, having the same adviser for years makes a big difference. They have continuity with you, a strong, unified vision for your goals, and personal investment in your success.
That said, you are only as successful in this relationship as you allow yourself to be. Getting to know and trust your turnkey partner is so critical, especially in that first year. Don’t neglect the relationships that make your investments work.
Read, read, and read some more.
Never underestimate the value in continuing your education. In real estate investment, the learning curve can be steep. While this is mitigated through a knowledgeable and experienced turnkey partner, it doesn’t absolve you from learning everything you can about your new venture.
From understanding different investment strategies to becoming fully acquainted with your investment markets, reading up is hugely beneficial. Even though many of the trials of decision-making are removed from the equation thanks to a turnkey strategy, being able to speak about your ambitions, properties, and strategy with proficiency will only help.
Where else do you apply this principle? At Memphis Invest, you will communicate with your adviser at least once a month. As you settle into the rhythm of being a turnkey investor, you need to really pay attention to the reports you receive from your adviser.
Be sure to check out: These 4 Steps Lead to Successful Portfolio Growth
Think about next steps.
One of the biggest mistakes we see inexperienced investors make is failing to plan ahead. If you just know you want to invest, that’s great — but it’s not enough to sustain a long-term vision for financial freedom. As the owner and investor, you must be empowered to take control of the trajectory of your investing future.
What does that look like, exactly? For many, it means setting goals as to when and where you want to expand your portfolio. It means thinking about both short-term and long-term steps and how to accomplish them. This is where you are the most proactive and involved — in shaping the growth and direction of your investment portfolio.
Practice engagement.
Passive investors, above all other kinds of investors, can struggle with engagement. It takes intentionality and determination to really engage with your portfolio and the people who make it all happen. During your first year, be particularly proactive in your engagement of others. Make connections with other investors, both those with more experience and those in your same boat.
Get to know your turnkey provider. Be able to articulate your goals and hopes for investing. Engagement doesn’t just mean you initiate conversations and relationships with others. It also means you value reports and information surrounding your investments and their markets. Be an engaged investor.
If you follow these principles in your first year of investing and beyond, you are bound for success as a turnkey investor.
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