Investors new to buying and selling investment properties are usually unaware of the legwork that goes into finding properties and making them successful. Every successful investor, and we know the long hours that must be put into reaching real estate success. If you think finding and researching properties it too time consuming, there is a better way to get started buying investment property. A turnkey property company offers one of the fastest and easiest ways to get started. Just like with any investment, there are pros and cons of investing in turnkey properties. Knowing what you are up against and how these properties will help you could save you a lot of time as well as money.
What are Turnkey Properties?
In simple terms, turnkey properties are the easiest way to get started as an investor. All of the hard work that is invovled with acquiring properties, fixing them up and finding tenants is already completed. Turnkey property companies have expert staffs that handle every aspect of property investing. If you are new to real estate, working closely with a turnkey property company is a normal first time investment strategy. As you gain experience, you might be able to branch out on your own and complete much of the work yourself without assistance.
Pros of Turnkey Property Investing
One of the biggest resourses that is used up when you are involved in real estate is your time. It takes many hours of research to find properties, do title searches, contact attorneys to review real estate documents and have homes inspected. If a property is in a well populated area, many times it will be sold quickly to someone that knows how to expediate the legwork required. Many new investors that have not achieved a smooth workflow miss out on would-be properties due to the time consuming nature of research. Turnkey property companies have already done this research saving you a huge amount of time.
Another pro for investors is that no construction experience is required when buying turnkey properties. It is no secret that distressed and foreclosure properties are readily available in Florida. Finding contactors and workers to fix these properties up is an added expense. A first time investor with just enough funds to acquire a property might be surprised at how much it costs for repairs. Turnkey companies handle all of the construction before a property is put onto the market for sale. Another advantage is that turnkey companies find tenants. This creates instant cash flow upon purchase of a property.
Cons of Turnkey Property Investing
If you are a do-it-yourself investor, a turnkey property might not be the right choice for you. You have no say so in the acquisition, property management or previous construction that took place. You buy properties “as is” and might not love the decorations or the interior or exterior. If you prefer to dig in and do things all by yourself, a turnkey property might not satisfy your need to have your hands involved in every aspect of property ownership.
Learn if turnkey real estate investing is right for you. Download our Passive Income Information Kit below and talk to one of our investment specialists.