Is turnkey real estate worth it? There is a huge stigma around turnkey and rightly so. At the end of the day, there are just too many operators selling properties for far more than they are worth in bad areas. There are also property management companies associated with turnkey properties known to nickel and dime to death. So what you’re promised on paper is never actually what you make in real life. Are there good turnkey companies out there? Sure. But unfortunately, the majority of them are pretty crappy.
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Are Turnkeys Ever Worth It?
Look, I speak to so many investors, and many of them want to buy turnkey real estate. Of all those, the majority we turn down. I’ll tell you why. In my honest opinion, if you understand real estate deals well, you should do the work of finding properties yourself. Find the property, buy the property, renovate the property, put a tenant in the property, and manage it. You do not need a turnkey company.
Related: Sorry, But Turnkeys Aren’t 100% Hands-Off. For Success, Know THIS.
So, when is turnkey worth it? Honestly, you are probably going to get better deals yourself. But if you do want your investments to be passive, you don’t want to do any work, and you don’t want to control the entire process, then turnkey real estate might be for you. But you have to understand that you are not going to get the best deals. And in many instances, you will be paying more than what the property is worth. Then, of course, you’re going to have a property manager who is going to charge their fees to make ends meet and to cover costs.
I’d love to hear from you, especially investors that are buying turnkey properties and are able to buy them at below market value. I personally have not heard of anyone able to do that successfully.
So if you have done that, I would love to hear from you.