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As I mentioned earlier, turnkey real estate investing is the exact opposite of buying a property that needs to be fixed or renovated. With turnkey investments, the investment company will take care of the renovation, improvement, and/or fix-up of the property for you!
A turnkey investor does not purchase a house with plans to renovate it and then get distracted by other things (like retirement). The investment company purchases a house that is already in good condition and offers limited services.
The companies that offer turnkey properties are very careful about what areas of the home they invest in. They usually only cover the kitchen and bathroom because these rooms require no additional renovations or work.
These all-in-one packages make sense since most people do not spend many hours in the bathtub or shower, for example. Therefore, having an easy way to start investing makes sense. Also, this approach helps prevent expensive mistakes that can cost you money later down the line.
Turnkey Investments Are Not For Everyone
This article will talk more about how great turnkey real estate investing is but first let’s discuss why this style of investing may not be right for you. It is important to know the differences before deciding if this type of project is for you.
There are several reasons why turnkey projects might not be your thing. First, some individuals just like to manage their own affairs and believe others can do the same.
A lot of people talk about how to invest in real estate, but few actually do it. There are some however that prefer the more hands-on approach by buying a property and then working on it themselves. This is great if you love to make things work for yourself!
But what if I give you a good income stream right away? You may have heard of these before – they’re called ‘turnkey investments’. A turnkey investment is when someone has done all the hard work taking care of the business side of investing (the legalities, taxes, etc) while also making sure your tenant payduties, utilities, and monthly commitments like mortgage or rent are taken care of.
This person typically starts with a low cost home and upgrades it according to their budget and dreams. Then they market it online and spend money on advertising to draw potential investors. They keep upwith regulations and rules set forth by governments to ensure maximum returns for shareholders.
The next step in turn-key investing is finding your target market or audience. You will want to know if there are any gaps in services in their area that you can close by buying a stock or serving as an additional service.
For example, if there’s a local bank that people don’t use anymore because of poor service, you could start up a new business offering banking services to those individuals.
By adding this service to what they already have, they can switch to your company and pay less for the same thing!
This is called supply disruption. And there are many ways to find gaps like this – research and experimentation being one of them!
There are even sites that do it for you, so you wouldn’t need to spend too much time looking for opportunities. Take my friend I mentioned earlier who started her own real estate investment firm!
You can read more about her here, but she found gap in service through doing social media for businesses and then supplying hers to others.
As mentioned before, you do not have to have your own domain name or create a business using pre-made templates to begin investing in real estate. There are many great free resources that can help get your real estate investment start up going!
One of the best ways to learn how to invest in real estate is through what’s known as turnkey real estate investing. This is when someone else does all the work for you by creating a website with a done deal format, listing properties, finding tenants, negotiating contracts, etc.
You earn profits from the property just like an owner would while the investor collects rents and income generated from the house. By leaving this task behind, you save time money, and most importantly, energy!
There are several companies that offer this service so it is not necessarily expensive to get started either.
As mentioned earlier, turnkey real estate investing does not mean doing it all by yourself! You can be beginner or advanced investor, but there is one thing that everyone must have in order to do this: A business partner.
This person will work with you to achieve your investment goal, help run your business, and share in your success. They may also contribute money or resources for your project, depending on what stage you are at and what level of investment you have reached.
Most importantly though, this business partner should believe in you and support you as an entrepreneur. They should bring you food when you’re hungry, and talk you down when you’re feeling overwhelmed.
Their strength can easily outweigh yours, so make sure you know who these people are before agreeing to team up with them on your venture.
Now that you have determined what types of real estate investors you want to be, you need to consider how you will finance your business. This is one of the most important things to do as an investor!
As mentioned before, turnkey investing makes it easy for anyone to start their investment journey. That being said, there are two main ways to fund your business — through loans or by using your own money.
We recommend starting off with the second option since it gives you more control over your investments. Once you have built up your savings, then you can move onto the next level of funding your business.
There are many different ways to source extra funds such as selling assets, taking out mortgages, or even both. It all depends on on on what type of business owner you are and what kind of income you expect to earn.
General rules about buying a house include looking at several properties per week if necessary, keeping track of prices, numbers in documents, etc. There’s no hard and fast rule when it comes down to paying for a home, but doing your research is always helpful.
A few years ago, most people needed a lot of help to start investing in real estate. You needed lots of money to buy a house, then you needed to find a way to make it livable, and finally, you needed to learn how to manage and improve that home.
Now, there are many ways to get into real estate investing without needing too much extra capital or expertise beyond what you already have.
These strategies have become known as turnkey investments. With a turnkey investment, someone else has done all the work creating a business model for you to follow and reap the benefits.
The only thing you will need to do is invest in the product they are promoting. It can be the service they are offering, such as owning a rental property, or a single piece of equipment like a air compressor, or a whole apartment building, etc.
With these products, someone else does the hard work of finding, negotiating and closing on the properties or assets so that you don’t have to.
As mentioned earlier, turnkey real estate investing doesn’t mean you! Hiring someone to do work for you can be expensive or even impossible depending on what kind of investor they are and what services they offer.
Some people hire other professionals to do certain things for them and then try to do it themselves, which is usually not a good idea. A professional investment manager will handle all of the hard business stuff so that you don’t have to.
That’s why it is important to check out potential partners very carefully before agreeing to work with them. Make sure their qualifications are sound, and make sure they can be contacted easily in case something goes wrong.
You want to be able to ask any questions you might have at any time without feeling uncomfortable doing so.
As mentioned before, you will need to register your business as an LLC or ACN depending on what state you are in.
