For real estate investors, investing in turnkey properties is a fantastic avenue for building wealth. Turnkey properties offer a solution to those wishing to earn passive income, yet who don’t want to dedicate the time or responsibilities required with being a landlord. When you partner with a great investment company, investing in turnkey properties can reap long-lasting rewards.

A turnkey property is a home that is move-in ready and prepared for an investor to buy and rent out to a resident. There are no obvious structural or electrical issues, nor any renovations or updates still needing to be completed. When it comes to real estate investing, turnkey properties have everything perfected before the investor purchases the home from the investment company.

As an educated investor, it’s important to note that some investment companies use the term “turnkey” as a marketing ploy. These businesses will use the industry buzzword to reel in investors and have them purchase an investment property prior to or even during the renovation process. In addition, they will do the bare minimum in renovations in order for the home to qualify as “livable.” These should always be instant red flags for investors.

Secure your turnkey real estate investments by establishing your standards before investing. At REI Nation, the turnkey model we use is simple:

1. The investment company finds a property.
   
   
2. The investment company uses their money to buy and completely renovate the property.
   
   
3. Once the property is a performing asset, the company introduces investors to the potential property for their portfolio.
   
   
4. The investment company manages the property for the investor by finding residents to rent the property and keeping communication open for investors regarding returns and repairs on at least a quarterly basis.

Turnkey real estate is a viable option for every type of investor. Whether you’re on the path to purchasing your first property or are a seasoned investor seeking to diversify your portfolio, it’s a low-risk strategy to building long-term wealth.

Here are more reasons turnkey real estate is a wise investment:

• You can invest in turnkey real estate anywhere in the country — regardless of your location. Virtual real estate investing, or remote real estate investing, has become more accessible than ever. Rather than being limited to your local market, utilizing emerging technologies and software allows investors opportunities across state lines that can bring in the same — if not more — steady cash flow than your own city would. It also provides investors with an opportunity to build a more secure and diversified portfolio.
  
  
• Turnkey real estate investing is low-risk compared to the alternatives. The buy and hold nature of real estate investing is much less volatile than those of stocks or bonds. For passive investors who want to minimize risk, it’s the ideal choice.
  
  
• Ease of mind. True turnkey companies have already renovated the properties and found a resident for them, completely handling any disputes or maintenance issues. You won’t receive phone calls in the middle of the night about leaky pipes — just a check in the mail with your passive income. Minimal involvement means more time to focus on what you want to.
  
  
• Great way to get your feet wet. Turnkey real estate is an ideal asset for those who are new to investing. Whether you’re a landlord or looking to get started with a company, turnkey is ideal for those wishing to start out small as they begin building their portfolio.

Turnkey real estate investing is the perfect option if you are looking for passive income with a long-term strategy.

When developing your turnkey real estate investment strategy, trust and quality should be at the foundation of your decisions. Do your due diligence by asking the right questions, looking at the numbers, networking with other real estate investors, and always making it a priority to sort the facts from what a paper or person may try to sell you. 

Find a Market

Whether you plan to invest virtually or closer to home, research the markets you’re considering to ensure you’re making a prosperous choice. 

When assessing a market, seek out these qualities:

• High rental population compared to homeownership population
• High rental rates compared to mortgage payments
• High affordability index rates
• Low tenant default rates

Every investment involves risking capital. Although turnkey real estate investing is a far less volatile investment than stocks and bonds, researching potential markets and companies is an integral part of your success as a real estate investor. 

Choose an Investment Company

Just as you need to do your research when selecting a market, knowing the ins and outs of property management companies is equally important. 

Gain firsthand insight by joining online forums, such as BiggerPockets, asking for referrals who have been with the company (the longer they’ve worked together, the better), and approaching the company prepared with questions that will demonstrate whether or not they will be able to help you reach your wealth goals. 

A true investment company will have a fully-equipped staff, be able to candidly share their highs and lows throughout their time in the industry, and never hesitate to answer anything you throw at them. Trust is key here, so be sure it’s there.

Know Your Financing Options

Understanding your financing options will allow you to make the best decision for your portfolio. Cash is always an option, but for those who don’t have it to drop down on a property upfront, there are many other ways to finance your property.

Many turnkey companies will have existing banking relationships that they will want you to take advantage of, called preferred lenders. However, always remember that you are not obligated to use a preferred lender, ever.

Inspect What You Expect

Investors are consistently reminded to complete their due diligence throughout their investment process. At REI Nation, we make it easy. 

All of our investors are paired with a dedicated customer service representative. On a monthly basis, each investor receives a monthly report about their properties. We believe that transparency and accountability are imperative to being a revolutionizing turnkey company, and we uphold those values firmly. 

Quality is at the foundation of everything we do. From transforming houses into high-caliber assets to unlocking true wealth potential for our investors, we prioritize groundbreaking experiences across all our operations. 

Over the last 17 years, we have achieved:

• Managing over $700 million in portfolio value
• 2,100+ Turnkey investors
• 6,200+ Properties under management
• 7+ Years Running in Inc 5000 Fastest Growing Companies

Connect with one of our portfolio advisors today.