The world of investment is huge. The world of real estate investment is huge. If you want to earn passive income, you have a thousand options. If you want to invest in real estate, you also have a thousand options.
So why, when you have an endless sea of opportunities ahead of you, would you pick turnkey real estate investment?
We’ll be upfront: turnkey real estate investment isn’t for everyone. It’s not what every investor is looking for! You might be enthralled with flipping houses. Your method of investing might be your full-time job. You might like being hands-on.
But if you’re looking for passive income, we would argue that turnkey real estate is the best method investing you can choose. Yes, we’re absolutely biased. That said, there are compelling reasons for why we believe so strongly in turnkey real estate and why we’re in this business in the first place.
8 Reasons Turnkey Investing is Ideal for Passive Income
1. Access any market you want.
When investing in real estate, you want to know the market you’re in. You need to know it inside and out to ensure that you’re buying the right property in the right place for the right price, heading in the right financial future. It can be tricky and it can take a lot of time. When you have a trusted turnkey investment company in your corner, you access their markets, their knowledge, their inventory, everything!
Most investors hesitate to invest out-of-state for fear of buying sight unseen, but when you can trust your turnkey company, the world opens up. You can get in on hot and growing markets, where your local market may not be doing as well.
2. Tap into the insight of your turnkey company.
On top of market access, chances are your turnkey company has been around the block! If you’re a new investor, it can be especially helpful for you to lean on their insight and expertise, not only for their particular market, but for the real estate industry in general.
Good companies want you to succeed as an investor. The best companies understand this is a game of returning investment dollars as much as it is about returning on investment dollars. The best will have key team members in the best positions to help every investors portfolio perform at its best.
3. No more bidding wars!
Real estate investors spend a ton of time searching for ideal investment properties, and even more time working out deals. In hot markets, too much time can be spent getting caught up in bidding wars that can spiral out of control. With a turnkey company, you can forget that! They have their own hand-picked inventory that are already generating passive income. The whole buying process is greatly streamlined.
4. Focus on the big picture & portfolio growth.
Because the details are already taken care of, you put your time and energy into the things that matter to you. Focus on your other pursuits, on growing your portfolio and investment strategies. You don’t have to get lost in the weeds. The best turnkey companies, and to be very direct - I can only think of two who offer these types of services today - are going to offer an esily accessible on-line portal for you to monitor your portfolio AND a monthly customer service phone call from their team.
So you can access your data and information at any given point and in real time as well as have an opportunity to talk to a team member without having to stress over missed phone calls, unanswered emails and non-returned messages. A team that reaches out to you monthly is a team worth reviewing as your partner.
5. Acclimate at your own pace.
New investors have a lot to learn. Because turnkey real estate involves leaning on the expertise of other professionals, the learning curve can much more forgiving: you can learn a bit more easily and with room to go at your own pace.
Never be pressured into investing quickly or reacting immediately. If you are feeling the high pressure game, then it may be time to take a step back and re-evaluate.
6. Be as passive as you want to be.
Turnkey real estate is about as passive as humanly possible. When you’re with the right company, they take care of the details for you. Real estate investment doesn’t have to be your full-time job. Yes, it does still take work—but it doesn’t have to take over your life.
Remember to never to be passive about your passive investments and allocate enough time to keep up with the performance and details. A great company will handle the heavy lifting and assist you with the details so you can be passive in your investments and active in your life.
7. The advantage of premier services.
Reputable turnkey companies bring with them the advantages of property management and services that are proven and trusted to keep your properties running smoothly: it’s not just about making buying the property easy, it making the entire investing process better.
Simply saying you a reputable turnkey company, however, is not enough. Companies have to prove it every day and real estate investors should expect that to happen. One of the biggest mistakes that investors is make is listening to the marketing messages of turnkey companies without comparing how those messages are going to translate into services.
It takes revenue for companies to operate a large staff and provide top-notch services. They are going to have to charge appropriate prices for the level of service they want to provide. I am not talking about over-charging, just simply charging the appropriate price to generate enough revenue to provide the team, the technology and the over-all service. So remember - just because a company advertises that they do something does not mean they actually deliver...and it certainly does not mean they deliver well!
8. Step right in and start earning.
They don’t call it turnkey for nothing! The biggest and most attractive advantage to turnkey real estate? Yes, you might be paying more upfront, but you get to step right in and start earning passive income right away. No tenant hunting, no waiting around to make renovations. You’re already generating income.
While turnkey real estate might not be the right method of investment for everyone, for people looking for a passive method of investment, you really can’t ask for better.
Just remember: not all turnkey real estate investment companies are created equal. Always do your homework on the frontend! Ensure that the company you work with has a proven record of success and excellence.