So Many Turnkey Providers Are Subpar: Here’s What They Should Be Giving Investors
I’m bringing you fire today. Grab the fire extinguisher because this is going to be hot. Today, I’m talking to you about why you should invest in turnkey real estate.
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For those of you who don’t know who I am, I am proud to say I am the biggest anti-guru there is. I’ve even spoken about why you should never invest in turnkey real estate and some of the biggest pitfalls of investing in turnkey real estate in some of the previous blog posts. I also want to share with you that I am not a fan of anyone selling courses, DVDs, seminars, or any kind of material that will supposedly get you rich overnight. You know, you pop that blue pill and all of a sudden you’re wealthy and you’ve made money in real estate. Guys, it doesn’t work like that. It takes a lot of time, blood, sweat, and tears to really get to where you need to be. And a lot of hard work.
But I don’t want this to be a negative post; I want this to be a positive one. So, I’m going to be talking about why you should invest in turnkey real estate and what makes turnkey real estate so amazing even though it is an industry scarred with so many shady operators. And I love to call them out on the stupid stuff that they do, and unfortunately, there are more shady turnkey operators out there than honest ones. But once again, I’m going down the negative path, and I don’t want to do that so I’m going to try and stay positive here.
What a Turnkey Company Should Do for You
So, if you’re investing in turnkey, if you’re looking to invest in turnkey, this is what the turnkey company has to do.
- They have to find the asset.
- They have to buy the asset.
- They have to renovate the asset.
- They have to get the asset tenanted.
They should hold your hand throughout the entire process, then once they sell the property to you they should continue holding your hand throughout the lifetime of the investment. The only thing that you need to do is sit back, relax, and collect the rent. You simply need to check your account every month and make sure the rent is coming in, the cash flow is flowing, and if that is the case, no news is good news.
This is the biggest benefit of investing in turnkey real estate—the provider will completely take the headache out of owning an investment property. In most cases, you’re going to have to pay a little bit more than what the property is worth because that is the premium associated with buying a turnkey property. But a lot of you out there are very, very busy professionals. You don’t have the time, you don’t have the skill, you don’t have the knowledge to implement everything I said.
Now, being a turnkey provider myself, I can guarantee you that there are a lot of links to the chain. And all those links need to be strong because if they’re not strong, your chain is useless. It’s not an easy job for a lot of the turnkey companies out there to have a successful business model, and that is why a ton of them aren’t that great. And a ton of them structure their business in a weird way. Ultimately, what a true and genuine, 100 percent turnkey company does is pretty much everything that you can imagine. So once again, all you have to do is sit back, relax, and collect the rent. You should not be involved with anything when it comes to turnkey real estate. And unless you can find the provider that offers you a completely hands-off, passive income, money making experience, I don’t think you should go ahead and invest with them.
Is a Turnkey Investment Right for You?
My apologies to all other turnkey companies out there that have different structures or different ideologies of what a turnkey provider should be doing—but a turnkey provider should be doing everything in-house and should have a vested interest in your success. Anyone can sell a property; I’ve sold 400 in the last five years. That’s not the point. The point is once you actually make the sale to continue managing that property successfully, continue making sure that that property is cash flowing, and continue making your investor happy.
That is probably the best way that a turnkey company can help you out: Make it a complete hands off and passive income experience. Ultimately, if you do not want to pay that premium and you want to do the work yourself, by all means, go out and do it yourself. But if you’re pressed for time, look at investing in turnkey.
Do you invest in turnkey? If so, does your provider offer this level of service?
Let me know with a comment!