How Do Turnkey Companies Make Money?
The Transparency Protocol and the Acquisition Spread
Investors often ask us a key question about our business model. They want to know how turnkey companies make money when the deals seem so good for buyers.
It’s a fair question, and after 19 years in the Jacksonville market, we know it deserves a clear answer. We believe transparency is the best way to build long term partnerships with our clients.
When people ask how turnkey companies make money, they’re often looking for a hidden catch. We want to be clear: there is no catch in our business process.
We earn revenue because we operate at a scale that individual investors can’t match. We’re a professional services firm that specializes in acquiring and renovating residential properties. Our main goal is to make real estate investing easy for people who want a hands off experience. The first way we make money is through the acquisition spread.
Over nearly twenty years, we’ve built a network in Jacksonville that helps us find properties at lower prices. We focus on buying homes that need repairs or updates. Since we buy in large numbers, we get these homes for less than typical market prices. We prioritize long term rentals, not vacation homes, because they offer more stability for our clients.
Our profit comes from the difference between our total costs and the price we sell to investors. We use our own construction teams to turn these houses into fully renovated homes. By using our own crews, we avoid the high markups private contractors might charge. This approach is a key reason we can make money while still offering fair prices. When we offer these homes for sale, we’ve already handled the major construction risks. You’re buying a finished property that’s ready to go from day one.
We handle finding the deals and managing renovations, so you can skip the hardest parts of being a landlord or property owner.
Invest in Real Estate Without the Headache.
Looking for investment properties? JWB makes property investments in Jacksonville simple, profitable, and hassle-free. Get an Inside Look at JWB’s Investment Properties!
The Innovation of Build to Rent Revenue
We’ve also taken a different approach with our build to rent program. This is a modern way for turnkey companies to make money.
Instead of only looking for older homes to fix, we use our own land and construction teams to build new houses. This lets us control quality from start to finish. New construction gives our clients extra peace of mind. When we build homes for the rental market, we serve as the main developer.
We earn part of our revenue from the developer margin, which is standard in new construction. We build homes more efficiently by constructing them in groups across Jacksonville.
After 19 years here, we know which layouts and features local tenants want. This experience helps make sure our homes stay in demand for years. Many people find out of state investing easier when they buy a brand new home. These properties usually need less maintenance in the first few years, which helps your cash flow.
We make money by selling these new homes at prices that reflect their quality. This model is different from the usual fix and flip approach. This approach lets us offer more homes without relying only on distressed properties. One big benefit is the potential for long term property appreciation.
Jacksonville is growing, and new homes here often increase in value over time. We profit by turning raw land into valuable homes for your portfolio.
The Stewardship Dividend
A key part of our model is our long term devotion to the homes we sell. We don’t just sell you a house and disappear after closing.
Instead, we offer management services to make sure your property is well cared for over time. This is another way we earn revenue, through property management fees.
Our management fee is usually 10% of the monthly rent collected. This fee aligns our interests with yours, since we both benefit when your property does well. We only earn money when your property is rented to a qualified tenant who pays on time. This gives us a strong reason to manage your investment carefully. We’ve managed thousands of properties in Jacksonville over the past 19 years. This experience helps us manage tenant issues and maintenance requests professionally.
When people ask how turnkey companies make money, they often overlook the costs of running a management company. We have a large team of experts who handle everything from screening tenants to emergency repairs. Your 10% fee covers this infrastructure, so you can enjoy a truly passive investment. We also earn a tenant placement fee, which covers marketing and screening new applicants.
This fee helps us find the best residents for your home. We also handle maintenance to keep your property in good shape for the long term.
We don’t add a markup to repairs done by our vendors. Instead, we focus on quality service to protect your investment from unnecessary wear.
Management fees help us keep our business stable for the long term. We see our management team as the backbone of our partnership with clients.
The Amazon of Real Estate Investing
Consistent, Reliable Returns
Since 2011, JWB has delivered over $305 million in total profits to its investor community.
Unmatched Growth
JWB clients have experienced 77% more home price appreciation from 2013-2023 compared to the average Jacksonville investor.
Dependable Results
With over 1,200 homes rented annually on 2 to 3-year leases, JWB maintains a 75%+ lease renewal rate and an average resident stay of 4.5 years, ensuring stable and consistent returns.
How Vertical Integration Helps Property Investors Stay Consistent
The Realty Ecosystem
We also make money through our in house brokerage division, which is a key part of our model. This setup lets us handle every part of the transaction within one company. When we list a home for sale, we represent that property professionally. We earn a standard commission on the sale, just like others in the real estate industry.
Many people who ask how turnkey companies make money don’t realize how important our brokerage arm is. We’ve spent 19 years helping with thousands of transactions in Jacksonville. This experience helps us make the buying process as smooth as can be for our investors. Our realty team gives you detailed reports to help you estimate your cash on cash return.
We believe accurate data is key to a successful investment strategy. Our long history in the local market gives us a unique view of property appreciation trends. We use this knowledge to help you pick homes with the best potential for extended growth. We also earn revenue when you eventually resell your investment property.
We hope to be your partner for as long as you own the home. If you decide to sell later, we can serve as your listing agent again.
This lets us earn another commission while helping you benefit from your property’s appreciation. We don’t sell vacation homes because we prefer the stability of long term rentals.
We have licensed professionals who know the ins and outs of the Florida market. This expertise is a big part of the value we offer our buyers.
By keeping our brokerage in house, we can communicate better throughout the closing process. This helps make sure there are no surprises when it’s time to sign the final paperwork.
We believe a full service brokerage is essential to being a true turnkey provider. Our team is devoted to handling every transaction with integrity.
Why You Should Invest in Jacksonville, Florida
Jacksonville Florida is one of the only markets in US with lower than average home prices and higher than average home price appreciation – making it a source of enormous potential for residents and investors alike. It is currently the fastest growing city in the state of Florida and the 3rd fastest growing city in the US over the last 5 years. With numerous large-scale downtown revitalization efforts currently underway, the city and its surrounding area are poised for significant, continuous growth. In fact, in 2024, Jacksonville was named as one of 5 “Supernova” metro areas by the Urban Land Institute – alongside Raleigh, Boise, Austin, and Nashville.
13%
Lower Home Prices
7%
Higher Home Appreciation
2nd
Hottest Job Market
#1
For Corporate Relocations
3rd
Fastest Growing City in US
$4BN
Invested in Downtown Projects
The Secret to Rental Property Success: It’s the Team
The Cost of Doing it Yourself vs The Turnkey Margin
Some people try to save money by managing everything themselves, thinking they can find and renovate properties without professional help.
But they often discover that the hidden costs of this approach are much higher than expected. This comparison helps explain how turnkey companies make money.
When you work with us, you’re paying for the efficiency we’ve built over 19 years. Our relationships with vendors help us keep renovation costs low.
Individual investors often pay retail prices for materials and labor, which can lower your cash on cash return compared to our professional model. Out of state investing is especially tough if you try to do it yourself. You have to consider travel costs and time away from your regular job.
Managing contractors from far away often leads to delays and costly mistakes. We take on that risk so you can enjoy a truly passive investment.
Our profit margin is really a fee for the security of buying a finished, income producing property. We’ve already handled the tough parts, like permits and inspections. By the time you buy the home, it’s already generating income for your portfolio. We make money because we’re more efficient at these tasks than an individual could be. Our scale allows us to distribute overhead costs across many different properties at once. That efficiency is what allows us to be profitable while still providing a great deal for you. Our margin is a fair exchange for the peace of mind we provide. You are committing capital to a system that has been tested through many different market cycles.
Attempting to recreate our infrastructure on your own would require years of effort and significant capital. We have already done the heavy lifting so that you can start building wealth today. The time you save by working with us can be used to focus on your career or your family. We are proud to offer a service that adds real value to the lives of our investors.
Why JWB?
When you invest with JWB Real Estate Capital you benefit from our full-service, data-driven approach, exceptional market insights, and proven track record in the thriving Jacksonville, FL market.
Consistent, High Returns
Our vertically-integrated approach has helped clients achieve an average of over 20% annualized rate of return.
Vertical Integration
From sourcing turnkey rental properties to leasing and property management, our in-house expert team ensures a low stress, efficient, and profitable experience.
Market Expertise
Our focus and deep market knowledge allows us to offer superior opportunities in Jacksonville, FL – an epicenter of growth.
Invested in Your Success
Our team works with you to identify your personal investment goals and custom builds a real estate portfolio to meet your needs. Our high-touch, data-driven approach has made over 35 of our investors millionaires from JWB investments alone.
Get an Inside Look at JWB's Investment Properties
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Is the Catch Actually a Competitive Advantage?
We believe that a profitable company is the only safe partner for a long term investment. If a business is not making a profit, it will not be able to support you in the future.
When you ask what a turnkey company makes money, you are really asking about stability. We have a multiple revenue model that does not depend on one single source of income.
We focus on what we do best so that you can reap the rewards of real estate. Our success is assessed by the number of families we have helped achieve their goals.
We believe that honest communication is the foundation of every strong partnership. Our team is prepared to answer any questions you may have about our fees or our process.
Our goal is to make the process of owning real estate as simple as possible. We are excited to see what we may achieve together in the coming years.
Please get in touch with our team if you want to learn more about our specific approach. We are always happy to share our data and our understanding with prospective partners.
Call us today for a consultation.