Getting into the real estate business is a surefire way of generating more income whether you do it actively and passively. Some people have the ability to be a real estate agent because of their impressive interpersonal skills. But if you’re on the other side of the spectrum, you might want to venture in turnkey investment instead.
But first, what’s a turnkey investment?
A turnkey investment is a property, either a house or apartment, that an investor can easily purchase and rent out. It’s a newly renovated property that is move-in ready. A lot of people are getting income through purchasing turnkey investments.
Here are the steps on how to make your next property into a turnkey investment:
1. Choose the property’s location and target market
If you want your next property to be competitive in the market, you have to choose the location carefully. Make sure that the area is in-demand, where people most likely take up residence in the next few years. Research on the demographics to find out if the location of the properties you’re looking at are highly investable. Avoid cities or areas that are experiencing a decline in terms of population and economic growth.
Concerning location, you also need to choose the target market. Identify the types of investors you want your property to attract. You can check this Roofstock review for turnkey properties and its market.
2. Explore financing options
Unless you have enough money to buy the property in cash, you need to explore how you’ll be successful in property acquisition. To purchase your turnkey investment, you need to find a financial institution that can provide financial help in the city where you want to buy the property. Also, you need to be able to fulfill your duties as a borrower. There’s no point in getting a turnkey investment if you won’t be able to pay for the money you used to buy your property.
3. Look for the best turnkey rental property provider
Now that you’ve secured the location and the money for your property, it’s now time to look for someone who’ll manage your property for you. Since you don’t want to exert much effort in the real estate business, you can let other people find the investor for your property.
Look for reputable turnkey providers in your area and let them know that you have a property that’s available in the market. They are the best option to get an investor who will purchase your investment.
Here are some considerations you need to know when choosing the right turnkey provider:
- Network – You have to make sure that the turnkey provider has an extensive network and a wide range of properties that you can avail of. Their reputation can be determined based on the kind of network they have and how they operate.
- Quality of properties – Choose a turnkey provider that has good properties. Most likely, they are stringent in terms of what they are willing to provide to their clients.
- Knows your needs – Establishing a harmonious relationship with your provider is essential to make your turnkey investment a success. Make sure they know your needs and are sincerely willing to help you out, and not just make money from you.
4. Choose multiple turnkey options and decide
You have to carefully decide which property to buy at this point. Carefully review and weigh in which is the best option that will maximize profitability. Also, make sure that it undergoes an inspection since you don’t want problems to arise that can negatively affect your investment in the future. Ask your turnkey provider to check the property and have it fixed. Once you’re satisfied with everything, you can proceed to finalize the contract.
5. Find tenants and keep the money going
Now that you’ve successfully owned your first turnkey property, it’s now time to generate income by securing your tenants who will be renting your place. Your turnkey provider should be the one recommending you with the list of possible tenants. You have to carefully examine and find tenants who will keep the money flowing in. Also, find responsible tenants to ensure that your property is well taken care of to avoid unnecessary expenses.
Having a turnkey investment is an easy way to generate income with less effort. However, before you can reap the benefits from it, you have to go through some steps before you can find your turnkey investment. Make sure that you have excellent financial help and the right turnkey provider to ensure that you’re on your way to making good money out of turnkey investments.