All property investment, there is always risk involved – that’s just how investments work, no matter what type of asset you’re into or what strategy you’re using. However, there’s an added layer of risk involved with turnkey, because there’s another party that’s introduced into the mix – the turnkey group. Contrarily if one would decide not to use a turn key and try to refurbish and tenant on their own….it is a full time job and still has risks for those that do not know how to screen tenants….evict tenants…deal with tenants not to say about all the surprises with a refurb project. On every deal we have overages between 5-15% due to surprises discovered during rip out….

For some Turn key is truly is a fantastic way to invest in real estate. Yes, there is a slight premium yet they are handed a cash flowing HMO or buy to let. Trying to run a project remotely is not for the faint. As well you need to aware of who you are dealing with when buying a turn key property. Have a survey…Ask for references etc.

The first step is to find a reputable turnkey property group. Now, I understand this can be easier said than done. All of the hot markets have been flooded with “experienced” turnkey providers or sourcers who claim to have unmatched knowledge of the market and offer BMV deals. Obviously, some of these claims are going to be exaggerated, and it’s your job to pick out which companies are speaking the truth and which aren’t.

The best way to do this is to get references from other investors. You can ask people that you know personally, or you can get online to see what people are saying about a particular turnkey provider. Be realistic, turn key property providers are providing a full service. They are entitled a profit.

You should also take the time to meet with the provider in person. We suggest to all of our investors to come to Manchester and see our projects and meet with us. Go to their office, meet their associates, and try to get a feel for how they run their business. A face-to-face meeting is usually the best way to get an accurate read on any turnkey property company you’re considering.

Another area that can cause some discord with investors is the idea that they’re not getting the best deal when they work with a turnkey property provider. The reality: yes, you’re going to pay more for your completely rehabbed, tenanted, and management-provided investment…if you try to do it yourself…You might end up paying much more…and taking much more time.

Yes…you’re going to pay more, but you’re paying market value or slightly above market value for a property that is move-in ready and cash flowing immediately…

 

Two last thoughts…Don’t let perceived risk about turnkey property investing prevent you from using this strategy. Turnkey truly is a great way to get into the property game and create a passive income stream that can supplement your current income and pad your retirement savings. The choice is simply invest your time …energy…yes..make mistakes…yes have cost over runs…yes have time over runs….This is reality…