Sell me on the benefits of Turnkey Properties

[Shiloh Lundahl]

I have never purchased a turnkey property before so I am not familiar with the process. So correct me where I am wrong. 

A turnkey operator finds or builds a property. Then after the rehab or building is done, they put a tenant into the property and they sell the property at market value to an investor. The investor either gets a loan or buys the property in cash. The turnkey company then manages the property for the investor owner until the property gets sold eventually. 

I'd love to know some average numbers for a turn key. From what I gather, the turkey operator will by a property at around 100k that needs 50k to get it fixed up. Then the turnkey operator sells the property at the market value to the investor who pays market price of around $200,000. So the turnkey company has made 50k on their flip without needing to pay realtor fees of 6%. 

So the owner is not stepping into any equity but instead his or her net worth is lower based on the fact that they had to pay closing costs on the transaction.  

The turnkey company then manages the property and gets paid the management fee and all the extra fees associated with the management such as turn overs and lease ups, repairs, and sometimes sales costs. 

Correct me where I am wrong with my perception and walk me through the benefits of going with a turnkey company, where the profit is for the investor, and if the benefits outweigh the costs.