A Simple Guide for Buying Out of State Turnkey Investment Property
Hi Everyone, I have transacted hundreds of various deals:
- Investment Buy & Hold (Not Turnkey)
- Turnkey Investment Buy & Hold
- Single Family Residential (1-4) Unit
- Multi-Family 10+ Units
- Property Maintenance
- Property Management
- Buy Fix Flip & Buy Fix Flop :) (it happens to the most experienced of us to)
- Property Construction (New Construction & Remodeling)
- Renovation Loan Construction
I have much to learn still and much to do, I am by no means a know it all or claim to know it all, the aforementioned transactions however, I am highly skilled in, experienced and very technical, with that disclaimer in place, lets begin......
This is all about buy & hold investment turnkey for out of state buyers, the true guide to a successful experience:
Definition: Turnkey Investment = Pure Passive Income
- Purchase Direct from TurnKey Provider
- Turnkey Provider has completed the acquisition ahead of investor commitment
- Asset was renovated using a high caliber finish and resilient products
- Turnkey Provider has vetted and placed a tenant prior transfer to investor
- Turnkey Provider Maintains and Manages the asset after the transfer to investor
This little road map serves as a source of accountability and should help secure long term and consistent cash flow, ultimately resulting in wealth building.
Turnkey in simple terms means - a completed product or service that is ready for immediate use. But to Smartland, Turnkey is more of a process which includes the purchase, renovation or rehabbing of an existing property, the leasing and then the sale of the property. So in other words all the hard and time consuming tasks are already done and the property is cash flowing from day one.
Purchase Direct from Provider offers a lot of insight about the hyper local market. Additionally, this offers yo the opportunity to buy without incurring or paying a "premium."
- knowledge of local Investment market, not just local real estate market.
- Premium Free Acquisition (No Middlemen - No added Fees)
- Acquire far below ARV (Actual Retail Value)
- Turnkey Provider has completed the acquisition prior of investor commitment
Turnkey Provider has renovated the asset using a high caliber finish and resilient products (Not just "lipstick on a pig"):
- Resilient products = No Carpet. Tiled spaces that are exposed to water.
- Uniform paints
- Mechanical condition and update
Turnkey Provider has vetted and placed a tenant ahead of acquisition:
- Screen the potential tenant form a global perspective (DTI*, CBC**, PCEV***)
- Tenant placed in advance of acquisition = No Placement Fee for the initial tenant
Turnkey Provider Maintains and Manages the asset after disposition to investor:
This is a very important part, you can say the glue that keeps it all working, a qualified management team can make or break your investment, does not matter where and what, this is the epicenter for your success. When providers offer in-house management this speaks to the assurance they feel about the property and the accountability they are willing to retain with you the investor. Many providers will pass you off to a "partner" or "other" property management company, they leave you with no accountability and then they have no skin in the game, the burden is on the management team they have shoved you off onto, if they do not perform the result is not the responsibility of the "provider."
- Management team is not centered around fees but its culture is centered around the investor ROI (this is the game changer here folks)
- They know the intimate details of the property, the tenant and property history
- Offers in house cost effective maintenance solutions - hourly is always cheaper than a contractor on a as needed basis
Turnkey can be a very successful way to build your wealth, you have to define the value add you gain with Turnkey and if it fits your strategy and goals. It boils down to value add and ultimatley defining how much time you have to spend beyond your busy work & life.
This is an abridged version of this guide, for more information please stay tuned. After completing hundreds of transactions, I simply want to share the benefits other people have been able to gain and eliminate challenges investors like myself and others have overcome successfully, by simply following this small road map for out of state turnkey investment property buying.
Meet the Author:
STEVEN GESIS, MBA (Investor & Turnkey Provider)
Home Town: Cleveland, Ohio
Specialty: Turnkey Provider
Experience: Over 500 Home Transactions
Years in Service: 6
Passion: Cash-Flow Education
Goal: Exponential Wealth Building