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Samantha Andrews
44
Votes |
35
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Be Careful With Turnkey Reviews: The Purchase Experience Is Not the Investment

Samantha Andrews
Posted

For everyone on BiggerPockets who has asked, “Should I invest with a turnkey provider?” there is one important thing to keep in mind:

Many people come on BiggerPockets immediately after purchasing a turnkey property and rave about the experience. The process was smooth, the provider was helpful, the property looked great, and everything feels like a success.

But what are they actually reviewing at that point?

They are reviewing the purchase process — not necessarily the investment.

A real estate investment cannot truly be evaluated the day you close. It has to be evaluated over time.

The real test comes after you have owned the property for 12 months or more. That is when you find out:

  • Did the property perform as projected?
  • Were the expenses accurate?
  • Did the rental income meet expectations?
  • Did the tenant and property management experience match what was promised?
  • How were repairs, vacancies, and unexpected challenges handled?

The excitement of a new purchase can make it easy to overlook the fact that the investment has not actually been tested yet.

A smooth transaction does not always equal a successful investment. The value of a turnkey provider should be judged by how the property performs after the keys are handed over — not just how easy they made the buying process.

Before relying on reviews, look for investors who have owned their properties for a year, two years, or longer. Those experiences provide a much clearer picture of the actual investment outcome.

The purchase process tells you how easy it was to buy.

Time tells you whether you bought a good investment.

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