6 Essential Benefits You Get From Your Turnkey Real Estate Investment

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Turnkey Real Estate – The Ready-To-Drink Investment

Many people would want to invest in real estate, but not all have the time, expertise and patience to be able to successfully pull it off. If you are short on these essential resources necessary to successfully execute the entire process of building or acquiring and fixing, and marketing a property, investing in turnkey real estate may better suit you. Investing in a turnkey property is similar to drinking instant coffee. All you need to do is pour hot water – your funding – stir and enjoy. Developers of turnkey investments have already covered all the details in putting together the property, making it ready for occupancy or, in the investor’s case, ready for business. The whole gamut of developing property, from constructing (or buying a handyman special and rehabbing) to attending to finishing details such as cabinets and carpet installation and even the recruitment of tenants, have already been covered. This precooked investment does not just offer convenience and a ready-mix business, you can also capitalize on a number of things that are discussed below.

Benefits Of Investing In Turnkey Property

Leverage on the Expertise of Others

Acquiring and renovating an investment property can be long and tricky if you do not know what you are doing and requires great attention. You will need to have the know-how of picking out promising properties from certain locations. You need to know the in’s and out’s of rehabbing and managing contractors and the marketing savvy to be able to sell your property to buyers or tenants. By investing in turnkey real estate, you get to capitalize on the expertise of real estate investors, developers, rehabbers and other specialists involved in the entire process. You may also pitch in your own expertise if you have any to supplement what is lacking.

Ride On The Purchasing Power Of Turnkey Property Developers

Rehabbers specializing in turnkey real estate can acquire properties in bulk, often from foreclosures, at great bargains. They are usually well-connected with banks and REO real estate agents in their market, providing them the upper hand in acquiring great deals at great pricing. For this reason, they can also sell turnkey properties at competitive prices.

Bank On The Market Knowledge Of Turnkey Property Developers

These turnkey specialists do not just have the wherewithal to acquire in bulk, they also know their niche location like the back of their hand. They know which particular areas, cities or streets are worth and not worth investing. They  are also knowledgeable on the kinds of properties that are sought after by their market, such as a 2-bedroom versus a 3-bedroom unit. With this mastery of the market, some providers can formulate a marketing plan and an exit strategy for you, helping you find tenants or buyers.

Avoid The Hassles of Maintenance

Turnkey real estate providers guarantee investors of the quality of their renovation job, liberating you from the responsibilities of maintenance. Some are true to their promise, but be careful in inspecting the prospective investment as some rehab jobs may have hidden money pits.

Save Time

Turnkey real estate providers already have the system of finding, acquiring, fixing and renting in place. This already includes all the minute but important tasks, such as registering transfer affidavits, notarizing paperwork, switching on utilities and many others. You have to invest not just money but a substantial amount of time if you have to do all these by yourself.

Obtain Funding More Easily

You have better chances of having your investment property loan approved by lenders if you invest in turnkey real estate rather than in a foreclosed property. By just paying 20 percent down payment together with closing costs, you can already purchase the property and you are good to go earning rental income.

Other Financing Options to Explore

  • Non-recourse funding and using your self directed IRA funds as a down payment
  • Seller financing options

The “all-set” nature of turnkey real estate makes it a perfect investment for busy investors who do not have the time and expertise to execute the whole process of finding, buying, fixing and marketing a property.

 6 Essential Benefits You Get From Your Turnkey Real Estate Investment

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