Investing in real estate can be lucrative, offering long-term financial stability and wealth accumulation. While there are countless strategies to employ as a real estate investor, one of the most popular is turnkey SFR (single-family rental) investing. This method appeals to individuals seeking a more hands-off and hassle-free investment experience.

So how does it work?

Turnkey real estate investing involves purchasing properties fully renovated and managed by a third-party company, allowing investors to enjoy passive income without the day-to-day responsibilities of property management. Investors leverage the experience of these turnkey companies, who often buy, renovate, sell, and manage properties in-house, to benefit their portfolios. 

It’s a pretty good gig – but it isn’t the right move for every investor. If you’re considering entering the world of turnkey real estate investment, read on to discover if this path is the key to unlocking your financial success.

6 Signs Turnkey Investing is a Perfect Fit

Sign #1 – You’re primarily interested in passive investments.

Turnkey investing is passive. This means you’re not the one handling the daily tasks. You’re not finding residents or overseeing renovations. You’re not marketing or even worrying about individual properties. Because ideally, you have a top-notch property manager handling it all.

Sure, some investors are wired for a more hands-on approach. But if that’s not what you want, turnkey investing strikes an outstanding balance between total ownership of your investment and cash flow.

Sign #2 – You believe slow and steady wins the race.

Turnkey investing is not exciting. It isn’t supposed to be. If you’re the kind of person who values slow, reliable gains that build something stable and meaningful, this strategy is for you. Every investor knows the proportional relationship between risk and reward. The higher the risk, the higher the reward stands to be. Now, we all have different levels of risk tolerance. 

If you’re a person who thrives on excitement and risk, turnkey real estate probably isn’t right for you. This business is about long-term commitments and slow, gradual growth. If you like your investments boring…you’re in the right place!

Sign #3 – You see the value in leveraging the expertise of others.

Some people like to do everything themselves. There’s merit in constantly learning and equipping oneself to meet new challenges. Turnkey investors recognize that they can’t know and do everything – especially to reach a certain scale in their portfolio. If you have a collaborative spirit – recognizing that you can work in tandem with professionals to achieve your goals – turnkey investing is right up your alley.

Instead of learning by trial and error, a turnkey partnership helps you avoid the learning curve and jump straight into success. 

Sign #4 – You understand the risks involved.

No investment is without risk. You’re not ready to employ any strategy if you do in thinking there’s nothing to lose. Even low-risk investments still have risks. If this is a path you want to pursue, do your due diligence. Understand the buffer (aka emergency funds) you must keep on hand.

Sign #5 – You’re willing to do your part.

Don’t miss this: turnkey investing still demands investor input. This isn’t something you can start and forget about. While it is passive in a sense, the investor still has responsibilities. You should be willing to learn, set goals, and work closely with your portfolio advisor to achieve them. In turnkey investing, the owner’s job is to provide direction and vision for growth. This is something your advisor can help with. But ultimately, only you know what you want to achieve! 

Sign #6 – You don’t want unnecessary headaches.

We’re going to be brutally honest here. Turnkey investing is not a cheap way to invest. But this path offers value beyond dollars and cents. If you’re the kind of person who hates the stress and headache of active investing or stock volatility, consider going turnkey. Real estate is one of the most reliable and proven assets you can own. 

By leveraging expert advisors and managers, you can own these assets with minimal risk in a system designed to preserve and grow your wealth.

Turnkey real estate investment isn’t a one-size-fits-all solution. Obviously, it’s the model we stand by, but we want to ensure that anyone seeking to build passive wealth does it in a way that aligns with their vision, wants, and capacity.

Not sure? Your turnkey advisor is here to answer your questions!