More and more investors are giving up on the volatile stock market amid coronavirus outbreak in search of safety, which means that they are looking to invest in hard assets like real estate. But still, many of these investors want to remain as passive investors and don’t want to spend time looking for foreclosures or fixing homes as a landlord.
So they sit on the internet and look for passive real estate investment opportunities and turnkey homes are perfectly good opportunities for them. However, as an investor, there is a good chance to fall victim to false advertising especially when it comes to turn-key rental properties.
To save you from scams, Turnkey Military in North Carolina share 5 signs of dangerous turnkey rental companies. Look for these signs before you deal with any company.
- One of the most important things to look for before you invest with a real estate company is their experience. An inexperienced team can lead you to properties that may not actually be ‘authentic’ turnkey properties, or they might sell you at a high price.
So always check the experience of the company you are dealing with regardless of whether they directly sell turnkey properties or provide one themselves.
Check The Portfolio
- If the company you are dealing with does not show you a portfolio of rental property they have or have dealt with previously, they probably don’t know firsthand what it takes to be a successful company in this industry.
There’s a lot of things to consider in this business so you’ve got to make sure that you are investing in the right neighborhoods. For example, Turnkey Military deals in turnkey investments in military neighborhoods in North Carolina and they can help you make a good investment because of their abundant experience in the area.
They Deal in Homes with Shoddy Renovations
- The whole concept of Turnkey properties is to find a home that is fully renovated and ready to move-in or rent out. But there are plenty of real estate companies that may list a home that still requires repairs and upgrades and market them as turnkey properties.
How do you tell the company is not fully renovating the property they sell? How do you tell if they are there just to make a profit and not overcharging you by leaving you with repairs and other upgrades to be made?
- The way to protect yourself is actually pretty simple – just don’t pay them. Do not send any payment upfront for renovations until they are completely done and you are satisfied. On an additional note, pay to get inspections on a property so you can see the exact picture before making an investment.
- Some turnkey real estate companies sell their properties above the market value and unfortunately, most investors are unaware of this. Some companies deal with other organizations to purchase their own properties so that they can lift their comps. So when you get a complete appraisal, you are getting an inflated comp
Another thing you need to know about is that there are many fraudulent appraisals done in many areas where the markets have crashed. This is why it is important that you know exactly what the area and the values are before you sign documents.
Get Professional Help
- If you want a safe and secure investment in turnkey properties, then get in touch with Turnkey Military today. They offer complete turnkey residential single-family properties for foreign and local real estate investors.
They are on the ground in the markets they deal in and provide you with management, construction, marketing, and more to ensure that you are satisfied with the investments you make.