Here are top 7 advantages of turn-key investing…
1. Fast and simple to acquire: Instead of scouring your local neighborhood or all those annoying Craigslist listings, you can easily invest in a turn-key property with just one phone call. Turn-key companies build up inventories of carefully-chosen turn-key investments and you can simply pick up the phone to get the ball rolling. Check out different turn-key investment companies before investing with one.
2. Cash-flowing right from the very first day: Turn-key properties are already rented before you even acquire them. That means, they’re making you money right from the moment you own the – depositing income into your bank account regularly (and eliminating the annoying hassle of finding a tenant first! Who knows how long that will take!?!)
3. Simple to Own: Turn-key properties are called “turn-key” because they are ready-to-go as soon as you invest in one. (By comparison, other types of investments will usually have an initial period of no income as you acquire them, renovate them, and find tenants – this can become costly, especially if your timeline extends due to unexpected repairs). Turn-key properties are rented and managed before you even acquire them, making them one of the simplest cash-flowing assets you can invest in!
4. Compelling returns that outpace other asset classes: Every turn-key investment is different and we can’t make guarantees of returns, but in our experience most turn-key investments have projected returns in the range of 10% to 15%. And when you consider the fact that these are cash flowing from day one, and are already managed, it increases how quickly you start seeing a return.
5. Provide diversification: Buying turn-key rentals gives your investment portfolio much-needed diversification, in terms of asset class diversification as well as geographic diversification. They’re also a hedge against economic downturn because rental markets tend to improve during recessions (in fact, the turn-key market actually got stronger in the recent real estate downturn as more people needed to rent).
6. Forget a mortgage – many investors just pay cash!: Many investors are held back from investing because they can’t get a mortgage (perhaps because they already have a mortgage, or perhaps because their bank doesn’t want to lend for their non-primary residence, or perhaps because foreign investors can’t get a loan for an out-of-country property). Turn-key rentals can be as cheap as $25,000, making it easier to buy with cash.
7. You probably have more money to invest than you realize: Did you know that you can use your self-directed IRA or 401(k) to invest in turn-key rentals? If you have any money in your account, you can acquire rentals (in the name of your IRA, not in your own name) and those investments will build your retirement portfolio while you sleep!