In some way or another, we’re all searching for balance. Whether we’re trying to juggle our professional and personal lives, looking for space for both ourselves and our relationships, or even a more balanced diet, the quest for the perfect ratio of everything in each aspect of our lives is never ending.
Balance is also an integral part of the turnkey investment equation. If you want to find success as a real estate investor—growing a portfolio, seeing your net worth increase, and having your assets multiply over time—you have to understand the value of balance from the very beginning.
This is what you need to understand about balance as a turnkey real estate investor.
You can pre-order your copy of The Turnkey Revolution, the first book release from Memphis Invest chronicling the best advice on how to safely build a passive portfolio from real investor experiences!
Why & Where Balance Benefits Turnkey Real Estate Investors
Portfolio Diversity and Risk Mitigation
One of the more obvious places where balance is needed in real estate investment is in your portfolio. The saying “don’t put all of your eggs in one basket” is never more applicable than here. When it comes to any type of investing, it’s never wise to rely on a sole source for your success. While a new real estate investor has to rely on a sole investment for a time, you will eventually need to expand and grow your portfolio, and it is vital to choose the right properties.
One does this primarily by selecting properties across different ideal markets. Investors should target rental markets that have a strong job market, a growing population, and high rental demand. This will help keep your cash flow strong in the event of a vacancy and generally reduce your risk.
Balance in Scaling Your Portfolio
Another area in which investors should seek balance is in scaling their portfolios. While a single property will not be enough to achieve the million dollar portfolio that you seek, it’s the right first step. From a single property, you can grow to own a handful, to dozens, to even hundreds. Before you know it, you can have a real estate empire on your hands and a net worth that you only dreamed of.
On the journey to that success, however, an investor must be wise in their strategy for scaling. Property acquisition takes resources and you must always be prepared cover unexpected issues or damages.
Scaling too quickly can be almost as bad as choosing never to grow in the first place. If you spread your resources too thin or jump into acquisitions without doing your due diligence, you may find yourself with a sloppy portfolio. Instead, focus on steady, sustainable growth that focuses on curated properties and markets.
Your turnkey real estate provider can help you strategize and identify how and when to grow your investment portfolio so that you stay on track towards meeting your investment goals.
A Vehicle for Passive Income
Turnkey real estate investment in and of itself is an exercise in balance. Other methods of investing can become unbalanced for the owner very quickly if they are not vigilant about their personal boundaries. For example, a do-it-yourself real estate investor who buys a rental property with the intention of renting it out and taking on landlord responsibilities will quickly see their balance take an extreme turn.
This path is often taken with the intention of cutting expenses and streamlining a system by involving fewer people in operations. However, the opposite effect is usually achieved. An owner who landlords can often find themselves sucked into a second job, especially when they expand to owning more than a single property or come face-to-face with a bad tenant for the first time.
This throws things off balance.
On the other hand, an investor may consider something totally hands-off: real estate crowdfunding or investing with a REIT. This may not disrupt their lives, but when one considers how little influence and control they have in the outcome of their investment future, one realizes how off-balance these types of investments are for the owner/shareholder.
A real estate investor who wants balance...who wants the best of both worlds...is far better off investing in turnkey real estate. This method allows both a balance of responsibilities and a control over one’s portfolio and individual properties.
A turnkey real estate investor never has to worry that their investments will take over and become a full-time job, but they also never worry that they are uninformed or out-of-the-loop. They enjoy true balance in their real estate investing, and it ultimately pays off in peace of mind.
If you want to achieve a balanced, successful real estate portfolio, turnkey investment is the path to take.
Schedule a free consultation with our licensed real estate portfolio advisors to get more information!