Are you considering your next big wealth-building strategy? Looking for ways to strengthen your portfolio? Look no further: it’s time to go turnkey.
Investing in turnkey real estate is an increasingly popular option for individuals seeking passive income and long-term wealth accumulation. Typically speaking, a turnkey property is fully renovated and ready for immediate rental or occupancy, often managed by a property management company, either affiliated with your turnkey partner or a trusted third-party vendor.
In the coming year, keep turnkey real estate on the table and top-of-mind with these compelling reasons to invest:
Just a Few Reasons to Take the Smart Route with Turnkey Real Estate
Hassle-Free Entry into Real Estate
For individuals new to real estate investing, turnkey properties provide an excellent entry point. Professionals handle the complexities of property acquisition, renovation, and resident management, allowing novice investors to participate in and reap the benefits of real estate without the steep learning curve.
Time Efficiency
Turnkey investments save investors significant amounts of time and effort. Finding, purchasing, and renovating a property can be time-consuming and stressful. With turnkey investments, the property is ready for occupancy or rental, allowing investors to bypass the extensive time and effort required for rehabilitation. Additionally, investors don’t have to do so much heavy lifting on the front end. Your provider has already hand-selected ideal rental properties for their market.
Mitigated Risk
The risk associated with turnkey investments is generally lower than traditional real estate ventures. The property has already undergone renovation, reducing the likelihood of unexpected repairs or maintenance issues. Additionally, having residents in place at the time of purchase provides a stable income stream and minimizes the risk of extended vacancy periods. As you acquire more properties, this risk diminishes further.
Professional Management
Turnkey real estate investments often come with the added benefit of professional property management services. Property managers handle day-to-day operations, such as resident relations, maintenance, and rent collection. This relieves investors of the burden of managing the property, making it as passive as possible! We can’t stress enough just how valuable skilled property managers are.
They keep things running smoothly while you’re free to focus on the big picture.
Immediate Cash Flow
Turnkey real estate provides investors with the advantage of immediate cash flow. Since the property is already renovated and typically has residents, you start earning rental income from day one. This is particularly appealing for investors looking for a steady stream of passive income without the delays associated with buying, renovating, and marketing a property. When you already have residents, there’s no interim during which you’re paying all the bills!
Predictable Returns
The stability of turnkey investments stems from the predictable returns associated with rental income. With a property management team in place, investors can anticipate a consistent flow of income without being directly involved in the day-to-day operations. This predictability can be especially attractive for those seeking reliable long-term returns.
Market Access
Turnkey real estate investments offer investors the opportunity to participate in real estate markets that may be geographically distant. This is particularly advantageous for individuals who want to invest in markets with strong rental demand or potential for appreciation without the need to be physically present. Your local conditions may or may not be conducive to successful rental investing. A turnkey provider unlocks market access with conditions better suited for immediate and lasting success.
Diversification
As an asset class, real estate has a low correlation with traditional financial instruments such as stocks and bonds. That makes it a choice addition to your portfolio if you’ve relied on more conventional options. For investors, the addition of turnkey real estate – perhaps the most passive strategy involving full ownership of a property – hedges against inflation, generates passive income, and grows in value over time.
While no investment is entirely without risk, turnkey properties provide a relatively headache-free way for investors to benefit from real estate investment. As with any investment decision, thorough research and due diligence are essential to ensure that the chosen turnkey property aligns with the investor’s financial goals and risk tolerance.
Ask us why we specialize in turnkey SFR properties for our investors.
