Turn-key real estate is real estate that is ready to rent and start earning a return. It includes the wholesale priced property, all repairs or full rehab, as well as management of the property.
BTGH sells investment real estate on the wholesale market to investors who plan to do their own rehabs, but increasing interest has motivated us to offer turn-key solutions to investors who either don’t have the time or patience to restore or rehab residential investments themselves.
What is Turn-key Real Estate Investing?
A real estate investor who purchases a turn-key property can expect to have everything taken care of so that they can start earning dividends immediately, similar to a paper investment, like an annuity or bond. Turn-key real estate investors are purchasing property that includes management of the property, repairs and tenancy. The revenue produced from the rental usually pays for all services, with about 5-20% left. What’s left over is essentially dividends. This residual income can be taken quarterly or annually, but it’s suggested to take profits on an annual basis, to prepare for any unforeseen problems that may arise.
Every investment includes risk. Turn-key real estate is no different. Owning rental properties isn’t without problems, and each rental property will have it’s own unique set of them. The primary issue most property owners face is human related. It’s difficult to find reliable, long-term renters and it’s tough to find good, reliable help. For these reasons, we suggest that property owners take their dividends annually, to avoid having to pay out of pocket for repairs and other unpredictable problems.
The costs of hiring a property manager are usually equal to what you’d pay if you decided to do all of the work and property management yourself.
The lost revenue most independent landlords face by not having a long term tenant in place is equal to around 1.5 months rent ANNUALLY. The costs of repairs to their rental properties are usually RETAIL. Now, while you may be able to predict lost income, it’s not so easy to anticipate repairs. While turnkey investors are still liable for all repairs to their properties, our property managers will take care of the repairs for the cost of materials and our labor. Our labor costs are by the hour – not the job.
If you’re a small independent landlord, the costs you incur and the average revenue you lose will equal the cost of hiring a landlord.
At BTGH, we have a small crew of construction personnel that perform all of our repair, restoration and rehab projects. They work full time and have a steady workload, which allows us to keep costs down. We pay per the hour, not the project and we manage every project ourselves, so we absorb that cost as well.
By keeping all costs under the same umbrella, costs stay lower, equaling a faster ROI for investors.
Turn-key Investment Real Estate from BTGH
If you’re relatively new to residential real estate investing, consider a turn-key option. If you already have some properties, consider hiring a property manager to simplify your life and your business.
For those who are looking for a turn-key investment option, our system is simple – “Buy one of our wholesale priced houses and we take care of the rest.”
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