When it comes to the rabbit hole of real estate investing options, the word “turnkey” is among the most commonly used but poorly applied terms around. In fact, many businesses use “turnkey” in their marketing materials just to capture a large audience.
There are many unique forms of turnkey investing at your disposal. Within the broad spectrum, numerous types of businesses operate in a variety of ways. When you’re researching this specific investing niche, it’s essential you understand what these differences are. Like any industry, there are some businesses that do an excellent job for their clients and others that don’t. Properly researching and vetting all potential investments is essential for success.
There are also many preconceived notions about what exactly turnkey investing is, why someone should or shouldn’t invest in these properties, and what the pros and cons are. These ideas come from the assumption that “turnkey” can be placed under a single category, which is impossible.
Over the past decade that I’ve been in the industry and part of the leading turnkey investment company, I’ve observed how the industry has evolved over time and why it’s necessary to address the most common misconceptions about turnkey investing. Here’s a look at them.
Myth Number 1: Turnkey Investing Is Fully Passive
Turnkey investing is often more passive than other types of investing when you’re self-managing, attempting to rehab/BRRRR properties, or investing on your own. However, this approach isn’t entirely hands-off. You’ll need to manage the property manager you hire and make sure that everyone on your team is operating as they should.
If you’re working with a great turnkey team, all the necessary systems should already be set up for you. That said, you’ll still be tasked with spending some time on this investment strategy.
In fact, I would argue that there’s no such thing as fully passive income. You…