If you’re here reading this, you’re at least interested in turnkey real estate. 

With so many ways to invest in real estate, why go turnkey? In this economy, the premium cost of turnkey investing can seem like a deterrent. We’ll tell you right now – not because we want you to invest with us, but because we know from experience – this model works. It continues to work through economic ups and downs, allowing investors to build their wealth without demands on time and expertise. 

From the outset, we want to say this: turnkey real estate investment isn’t for everyone. That’s why before we proceed with any potential client, we have a frank discussion about their goals, resources, and desired investment experience. We’re honest when things don’t line up because everyone deserves the best avenue to lasting wealth, even if that means looking elsewhere.

With that said, let’s talk about why turnkey investing works so well.

What is Turnkey Real Estate?

Turnkey real estate refers to fully renovated properties ready to be rented. Sometimes, investors may buy a turnkey property with an occupant and generate income from the get-go. While you will find variations of this model, it usually follows this procedure:

• The turnkey provider locates and buys suitable investment properties in strong markets.
• The turnkey provider utilizes trusted vendors or an in-house renovations team to get the property rental-ready.
• The turnkey provider places the property under a management team to reduce turnover and maintain the property.
• An investor purchases the property directly from the provider. Because the property is rental-ready, it will cost more than your typical pre-reno property deal. 
• The investor earns passive income through the rental property.

While turnkey properties often come with a higher price tag than non-turnkey options, they offer several advantages that make them worth the extra cost. Cost, however, isn’t the more important factor. Here are a few reasons why turnkey real estate can be a valuable investment:

5 Reasons Turnkey Investing is Worth the Premium Price Point 

Reason #1 – Time and Convenience

One of the primary benefits of turnkey real estate is the time and convenience it offers. These properties are fully renovated and equipped with everything needed for occupancy, saving you the effort and time required to manage renovations and repairs. With a turnkey property, you can generate rental income or move in immediately without delays or additional work.

The convenience doesn’t end there, though! Today’s real estate market is challenging, to say the least. Finding a suitable investment property, let alone winning the bid without blowing your profit margins, is a headache and a half. Turnkey investing removes that headache because investors buy directly from the provider. 

Reason #2 – Reduced Risk and Predictability

Because the turnkey provider, with all of their experience and resources, handles the heavy lifting of acquiring, renovating, and managing a property, their investors are exposed to far less risk. Their properties are typically located in desirable neighborhoods with strong rental demand, making them attractive to residents. This reduces the risk of extended vacancies and provides reliable cash flow. The property management team stops potential problems from blowing up, protects your residents, ensures quality service, and looks out for your best interests. 

Reason #3 – Quality and Professional Workmanship

Turnkey properties are typically renovated by experienced professionals who ensure high-quality craftsmanship and attention to detail. From the structural integrity to the aesthetic appeal, these properties are often upgraded with modern-yet-timeless features and finishes. The attention to detail and professional quality can enhance the property’s value and attractiveness to potential residents or future buyers. You won’t find a “landlord special” here, but rather thoughtful and strategic reno work. 

Reason #4 – Limited Involvement and Passive Income

For investors seeking a more hands-off approach, turnkey investing is ideal. Since the property is already renovated, rented, and managed by a property management company, you can enjoy the benefits of real estate ownership without the day-to-day responsibilities of property maintenance and resident relations. This primarily benefits individuals with limited time or real estate management expertise. You don’t have to worry if you don’t know much about this business – you can jump right in! 

Reason #5 – Potential for Higher Returns

While turnkey properties may have a higher initial cost, they can offer higher returns in the long run. The property’s rental income and potential appreciation may outweigh the additional upfront investment, leading to a more lucrative investment overall. Additionally, the turnkey nature of these properties makes them attractive to potential buyers when you decide to sell, as they offer a ready-to-move-in or ready-to-rent option. Diversifying your portfolio with these expertly managed and maintained properties is a surefire way to build reliable, lasting wealth. 

A Word of Warning…

The value of turnkey real estate can vary depending on factors such as location, market conditions, and the quality of renovations. Not every turnkey provider has the expertise and record of success you can trust. Be diligent in your research of any potential investment partner!

Our Portfolio Advisors at REI Nation make investing in real estate stress-free. Tap the button below to start!