Imagine it: you put your money in an investment that generates high returns with very little work required from you. As your investment appreciates, it also generates an attractive monthly cash flow. All you’re required to do is monitor the situation from afar and check in every now and again with the firm that’s handling your investment.
While this may sound like a dream, it’s a reality for the many real estate investors who have chosen to purchase turnkey properties and rent them out as they wait for them to go up in value. Partnering with a turnkey real estate provider can be helpful in terms of choosing the right property to suit your portfolio, as well as managing the rental on a long-term basis.
3 Ways Your Turnkey Real Estate Provider Can Set You Up For Success
1. Finding the Perfect Investment Property
Rather than researching properties by yourself, it’s a much better strategy to work with a turnkey real estate provider who is familiar with the area in which you’re looking and the types of properties that are available there. Because generating passive rental income is dependent on purchasing in an area where you can attract renters at a monthly rate that will cover your mortgage and then some, an extensive knowledge of the real estate and rental market in that area is a must. Your real estate investment firm will also choose properties based on your long-term vision: will you sell in a few years or hold on to the property for as long as possible to continue enjoying the rental income it generates?
Once they understand your goals, they’ll be able to crunch the numbers in order to provide unemotional and objective advice on what property would be the best choice.
2. Navigating the Purchase Process
Anyone who has ever purchased real estate understands how complex and drawn-out the process can often be. That’s why working with professionals with connections can speed everything along. Many turnkey real estate providers have relationships with loan specialists (such appraisers, property brokers, and lawyers), as well as banks.
A turnkey investment firm with a strong network is a sign that they’re reputable and are a good choice for you to partner with.
3. Property Management
When looking for the best investment company, keep in mind that it’s ideal if a turnkey real estate provider also offers property management services. The potential for an ongoing relationship is a good indication that the company isn’t involved in any underhanded tactics where they sell properties with known problems and then split the scene before the buyer is any wiser.
Think you don’t need property management services? Many real estate investors start out thinking this way — and some of them are able to function for a while playing part-time landlord. However, those duties can quickly become a full-time job as your portfolio grows in size. With multiple properties all rented out at once, keeping tabs on things can quickly become a nightmare, depriving you of time to rest, pursue your hobbies, or take care of your other full-time job, as well as depriving your tenants of having an involved and attentive landlord.
An experienced property management company will take care of all of the day-to-day tasks associated with running your rental portfolio. They’ll work to get your properties rented, process rental payments and late fees, deal with any tenant issues or problems that arise, as well as ensuring that the property is well-maintained and cared for.
From finding the right property to navigating the purchase process and handling all aspects associated with its rental, working with a turnkey real estate provider isn’t just a good idea — it’s an absolute must for any investor hoping to build a serious real estate portfolio.