Investing in real estate is a brilliant way to secure passive income. Many people even argue that these are better alternatives to stocks and bonds and should be a part of an investment portfolio. But if you are investing in a turnkey property, there are a lot of things you need to consider.
Is the Company Investing In the Same Area Where They are Selling?
- The very first question you need to ask the company is whether they invest in rental properties. You need to know whether the company is investing in the same areas in which they are selling the turnkey property to you.
Unfortunately, a lot of turnkey sellers are going to tell you that they do invest in rental properties and the number of properties they currently own and how well they are doing in the real estate market. What they will never tell you is that they don’t actually own any property within 50-60 miles of the property they are trying to sell to you.
- The fact of the matter is that many turnkey property sellers are paid lucrative amounts to convince you to buy a property from their client. They are basically acting as a realtor for the client.
Then there is even a group of people who do own properties near the one they are trying to sell. But after you do some research, you find out that they actually personally invest elsewhere and usually use the profits they gain to fund those purchases.
- For you, this is important because if a seller is not already investing in the area where they are selling the property, they don’t actually believe the area will do well or they are aware of the risks of return of investment in the area.
Find Out Who Will Manage The Property
- Property management is a very important part of rental properties. So naturally, you should look for a company that will sell and manage the property for you. In an ideal situation, you want to pick up the phone any time and talk to the person who sold you the home and ask him to have any problems fixed in it.
You really don’t want to become a person who is in a position where he has to do everything himself even after purchasing a turnkey property because turnkey means that everything is ready and handled by someone other than yourself.
What is the True Market Value of The Property?
- Turnkey property sellers are very notorious for overcharging for properties. So make sure that you get an appraisal on the turnkey investment you are about to make to find out the real market value of the property.
This has saved people hundreds and thousands of dollars on purchases. Yes, this is how much a turnkey seller may overcharge if you are not careful with whom you are dealing with.
Turnkey Military offers complete turnkey residential single-family properties for foreign and local real estate investments. We are always on the ground in the markets we serve. We also provide management, marketing, and construction to ensure that you are fully satisfied with your investment.