If you want to add a passive income investment in your portfolio then Turnkey Investment can be an awesome choice. These investments do not require you to have any experience or do anything on your own. All the responsibilities are taken care of by the turnkey investment companies. Obviously, you need to choose the one for you carefully because there are lots of scammers.
Here we are sharing the step by step procedure of buying a turnkey rental property so that you don’t get overwhelmed.
Choose a market to invest in – One of the benefits of turnkey investment is that you are not confined to your own city or locality. So, do your research and find a city or state where the rental market is going upwards. One of the defining features of the city can be the rate of population growth. If a city’s population is growing rapidly it means people from other places are turning there. And every newcomer to the city will require a rented house.
Find a reputable turnkey investment company – Turnkey investment is good that does not mean all the investment providers are good too. Do your research about the turnkey investing companies who have their investments in the city you want to invest your money. Beware of the agents or realtors of the investing company. You need to have a direct contact with the company. Don’t let any middlemen stand between you. Middlemen increase the risk of fraud. And also stay alert with the companies showing unrealistic dreams; they are the real scammers.
Check for the available properties with the turnkey providers – Once you have filtered out some of the turnkey providers in the city of your choice it’s time to focus on the turnkey investment properties. The companies would have many options and they will tell benefits of taking them all. But, you should not pick just a random property on the list. Make some criteria that suit you and filter the properties accordingly. If you think none of the property is perfect for you then convey this clearly to the dealers. Don’t get impatient in buying just any of the property; wait for the one that will suit tally with your preferences.
Go for an Inspection – When you have chosen a property based on the details and pictures provided by the company it’s time to inspect it on your own. Don’t miss this step under any circumstances. Good turnkey providing companies will never show unwillingness in showing you the property you are ready to buy. If the dealer is trying to convince you that the inspection is not required at all the danger alarm should ring in your head. In addition to seeing the property yourself, you should also get it inspected by an inspection company unrelated to the turnkey provider. There might be some problems that are not externally visible.
Get into the contract – Once you get satisfied after getting the property inspected you can enter the buying contract. However, some companies would want you to enter a contract before ordering any inspection. You can go that way but be sure to add a clause to your contract – you can back-off the contract if you find anything fishy in the inspection report. This addendum will give you the security cover from being compelled to buy a property with defects. And if the property is all okay you too want to get in the contract and start earning from your property.
Secure tenant for the newly bought property – Obviously, it would be the turnkey provider, not you who would be hunting for prospective tenants. Wait for this step to be completed before signing the closing deal with the turnkey investment company. The good and great categories of turnkey investment companies will not let you bother about this point. But if you have chosen a not-so-good company you can be left on your own for hunting the tenants. So, sit quietly without closing the deal and wait for a qualified tenant to rent your property.
Complete all the paperwork and close the deal – When you have gotten your property and the tenant for the property the turnkey provider’s work is over. So clear all payments, paperwork and other obligations and set the company free for dealing with some other clients. Now you’ll only have to enjoy the monthly rent coming to your bank account. And don’t forget to keep some money off in a contingency fund. You’ll need this fund for repairing your turnkey property when the need arises.
Get going! Now you are ready to be a turnkey investor!
Leave A Comment