If you’ve been involved in turnkey real estate transactions in the past or are currently evaluating a proposal,velocity of money your primary concern is how much money you will make and when will you make it.

They go hand in hand and when you find an opportunity that closes quickly, sells just as fast and pays you double digit returns on your investment it’s a winner. Especially so if you’ve been investing with the same real estate investment company that has already proven its mettle.

Compare investing in other types of assets for a moment. Say that you have $25,000 to invest and you decide to invest in a mutual fund or spread the funds around in different stocks on your own. You can elect to pocket the dividends and interest as they are presented or you can cash in your investment by selling the asset and chalking up your capital gains. You can buy and sell at your leisure and take your profits, or maybe avoid more losses, whenever you feel ready.

When you invest in a turnkey real estate transaction, you don’t have the option of pulling out any time you want. You get your profits once the property has been acquired, rehabilitated and sold and you also get your original principal back as well. But how quickly the project is completed also allows you to invest in yet another turnkey project sooner. A measurement of the velocity of money, yours, can be just as important to you as the final returns. Is a $3,000 return on a $25,000 investment worth it? Of course it is.

But what if your returns were sent to you by the turnkey investment company in six months or 12 months, does that matter? Again, you bet. The sooner you get your returns the sooner you can reinvest. You would rather have the opportunity to close two transactions in 12 months instead of one. That’s why how quickly your project can be closed out is important to you. You can get right back in the game with the right deal.