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. 

We’ve all seen certain assets and investments go in and out of fashion.

However, real estate has long been a cornerstone of the economy at-large, mostly because land is a finite resource and shelter is an essential human need. There will always, then, be a demand for real estate in some form or fashion. For an investor, this lends certain reliability and stability that you would not find in other asset classes.

Because investing in real estate is a numbers game, getting those numbers to fall in your favor is everything. While maximizing profits and minimizing expenses is sound on paper, it doesn’t always work in practice.

Whether you’re pursuing remote real estate investing or simply looking for a team to take the heavy lifting off your hands, a turnkey company can be a great option. We want to lay it all on the line…what do turnkey companies do? What do they not do? Understanding the fundamental role turnkey companies play will help you identify worthwhile partners…and potential scams.

Due diligence is a simple concept to understand but challenging to execute. It’s anticipating and mitigating risk, gathering accurate facts and data for informed decision-making, and doing your best to ensure you’re building your wealth and managing risk exposure.

Although 23% of Americans believe that investing in real estate is the best way to build wealth – more than stocks, starting a business, or getting a side hustle – only 12% bought real estate in the last year.

If someone asked you what the absolute essentials they need to know are for your industry, what would you say? It’s a question we’ve been thinking about. After all, there’s a lot you could say about investing in single-family rentals. What you need to know often goes together with dispelling some misconceptions about the industry.

You’ve decided that you want to add real estate to your investment portfolio, but that’s just the beginning! 

There are more than a few ways to invest in real estate. Deciding the best strategy for your financial goals, your personality type, and your desired level of involvement can be overwhelming. You’ll hear talk of BRRR and FIRE, buy-and-hold, flipping, and wholesaling.

I want to address some common misconceptions I’m hearing in my conversations recently. There are a lot of investors who believe passive and active investors should take the same approach to due diligence.

After 23 years buying and selling real estate, 18 years owning and operating a passive, turnkey investment company with my family, and having personally made or witnessed every mistake an investor can make, I believe it’s my duty to share my insight.

If you read this and take away nothing else, please take this: There is a fundamental difference in the approach a passive investor should take in doing due diligence as compared to an active investor.