How To Buy Turnkey Properties
Investing in real estate properties is a great way to earn passive income and enjoy tax benefits. With all the types of properties available today, however, do you know which ones provide the most benefits? Or which offers a high return on investment (ROI) the fastest?
Turnkey properties are a lucrative option for individuals who are looking to earn passive income long-term. This property type is characterized as a fully renovated home or apartment building that investors can purchase and immediately rent out.
Investing in turnkey properties doesn’t require too much work because the parties involved before your purchase can handle the inspection, appraisal, and title search. You can also hire property management companies to look after your investment.
What To Look For in a Turnkey Property
Investing in turnkey property can become your ticket to attaining financial stability, but only if you end up investing in the right property. The real estate market is bombarded with countless turnkey properties, which is why you should be careful when choosing. Your money will go down the drain if you end up buying a property that you can’t make money from.
Before buying a turnkey property, it’s best to inspect the following first:
- Location: Location is an important factor to consider because it affects the desirability and accessibility of the property. You’ll have difficulty finding tenants if you buy a turnkey property inaccessible to public transportation or basic amenities, like supermarkets and pharmacies.
- Price: Never trust the first piece of information you find about the price of the property. Understanding the price of the turnkey property and the value the pricing is based on is vital for your investment portfolio.
- Quality of renovations: Hire third-party professionals to inspect the property before buying it. With their expertise, you can determine the quality of the renovations made in the property and if these will improve your cash flow.
- Experience of the property management team: If you’re going to entrust your turnkey property to a property management team, look into their experience and reputation. Work with a team with in-depth experience in managing turnkey properties.
- Screening process for tenants: Find out the company’s average vacancy rate and how they screen tenants. Ideally, you should choose a company with lower vacancy rates as this translates to a steady income flow from your rental business.
A 4-Step Guide To Buying Turnkey Properties
After finding the property that suits your goals, you now have to learn how to buy turnkey properties. This process is often long, but provides several financial benefits, as long as followed correctly.
Here’s how to buy turnkey properties:
1. Research the Market Before Investing
Regardless of the location of the turnkey property you want to invest in, never skimp on research. Spend as much time as you need to determine which markets have high rental population and rental rates.
2. Find the Right Lender
Unless you’re going to pay in cash, you’ll need financing to afford buying a turnkey property. Find a lender who understands your investment and financial goals. If you’re going to invest in different turnkey properties long-term, start working with a lender who is licensed to operate in different states.
3. Look For an Experienced Turnkey Provider
Similar to how you’re going to research markets, you should also research potential turnkey providers. Maximize reviews online, and ask for referrals to get the information you need about turnkey providers. Once you’ve narrowed down your search, create a list of questions to ask.
The best turnkey providers can easily showcase their experience in the industry and remain transparent about their properties. Keep in mind that you’re not only paying for a provider – you’re also spending money for their experience.
4. Purchase a Turnkey Property
Create a list of criteria you want your property to have. For example, you should choose whether to invest in a duplex or single-family home. You should also determine the number of bedrooms and bathrooms you want the property to have and the amount of ROI you’re going to earn after x number of years. You can then go ahead with the purchase.
Buy Turnkey Properties Today
Buying turnkey properties is a long and often complicated process. Individuals who don’t have any experience investing in this kind of property are at higher risks of experiencing financial loss.
Don’t take any chances. Work with professionals who can help you find and buy the best turnkey property. We at (name of company) have managed thousands of properties for thousands of clients over the years, making us one of the most trusted names in the industry. We’ll take care of the entire process – from finding the right turnkey property to closing the sale.
If you’re interested in learning how we can help, reach us through (contact number) or email at (email address). We’re ready to find the best turnkey property for you and manage it on your behalf!