Because many real estate investors don’t want the trouble of purchasing and rehabbing properties, they often opt for turnkey real estate investments.
What is a Turnkey Investment Property?
Turnkey investment properties are fully renovated properties that investors can purchase and immediately rent out.
Real estate wholesalers who specialize in turnkey investment properties either have the properties rehabbed before selling them to an investor, or coordinate the rehab for the investor after the purchase. These wholesalers typically offer property management services to buyers, or refer property managers to the investor.
Equity in Turnkey Investment Properties
A recurring problem when purchasing turnkey investment properties is that all the equity has been drained from the property by the time it is purchased by the investor.
A turnkey property is purchased by an investor, held, rehabbed, possibly rented out to tenants, and then resold to another investor. By the end of this cycle, therefore, there is no equity left in the property.
A solution is for the investor to purchase the property from a wholesaler who coordinates with rehab and management companies at no extra charge, after selling the property to the investor. Therefore, the investor maintains more of the property’s equity.
Benefits of Turnkey Investment Properties
Though there can be a downside to turnkey real estate investing, there are some benefits.
Investors purchasing turnkey properties are not limited to the geographic area where they live, because of the local knowledge of the wholesaler from whom the properties are purchased. These wholesalers have intimate knowledge about trends in the cities and neighborhoods in which the properties are purchased, which can mean the difference between making a profit or losing money.
Purchasing turnkey properties, therefore, provides investors with location flexibility. Real estate investors are not limited to properties in the city in which they reside, and may purchase properties wherever the market is strong.
Turnkey properties are typically managed by professional property managers, who take care of leasing the properties to tenants and managing every detail regarding the management of the property.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay. We serve clients who flip homes in as little as 30 days, as well as clients who hold high cash flowing rental properties.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.