Traditional real estate investing often requires some amount of time and money investment in repairs, maintenance, and marketing, after you make a purchase before you earn a dime on your investment. That means traditional real estate investing requires you to live in or near the same markets in which you invest. So, if you live in a mature market or a depressed housing market, your chances of generating any kind of rental income are much lower than in other areas where markets are robust with high occupancy rates.

Fortunately, turnkey real estate investing is different. Instead of buying a property and taking the lead role in rehabilitating it, finding tenants, and managing the property’s daily needs, you buy a property that is ready for leasing and, preferably, already has tenants and a proven record of predictable revenue and profitability. Better still, you’ll hire a turnkey company to identify the most viable investments, help you to secure the property, and then provide the management services for you.

How Turnkey Partners Help

A turnkey real estate company is one that is an expert in a particular local market, can help you to find the most profitable properties available, assist with purchase negotiations, and deal with the property’s daily administration. The most difficult part for you is to ensure you find a good turnkey partner, which you can do by checking with local realtor associations, the Better Business Bureau, and industry references, to identify the best turnkey partners in different markets.

A good turnkey company should have ample information on the local real estate market and local experts on staff who can guide you to the best properties. They should know the local market demographics, rent potential, high- and low-crime areas, flood zones, zoning issues, local and state tax laws, and a wide range of other important market and local information that will help you to make the best decision. You don’t want to buy a property and find out a months or even years later it was targeted for an eminent domain claim for a road project or some other issue that could turn your investment into a loss, and your turnkey partner can help you to do that.

Professional, Experienced Staff

When you are looking for a good turnkey partner, you want to ensure it has fully trained, licensed, and experienced professionals and support staff so that you can benefit from their many years of combined experienced in the local market. They know the local vendors who provide the best work value and do all work properly and within legal guidelines and industry standards. When you hire licensed professionals, you are far more likely to have a seamless transition from property purchase to profitable investment.

More Efficient Marketing

Another advantage of using an experienced local turnkey partner is that your partner already is involved actively in the local market and most likely has a number of properties identified for potential purchase, properties that are for sale, and know motivated sellers who are more likely to give you a relatively good deal on your initial investment. They also know of good tenants and good candidates for renting from you without damaging the property, being a nuisance, or skipping out on rent.

When you consider all of the advantages of using a turnkey partner, you realize you have far more investment options and a far greater ability to realize true passive income, upon which you can rely throughout your period of ownership. The benefits you obtain often outweigh the cost of a having a turnkey partner and might wind up increasing your profits.

If you’d like to learn more about investing in turnkey real estate properties, talk to one of our specialists.