If you’re actively involved in the real estate market as an investor, or think you soon might be, then you know there are two basic philosophies as it relates to how the investment is made. Many real estate investors start out after a few years being a real estate agent who finds properties for other realis turnkey better estate investors.

A good real estate agent knows the market well and can more easily identify potential projects than the layperson. Yet over time the agent may begin to wonder why handing over lucrative real estate investments to others instead of splitting a sales commission with the listing broker. That’s a normal progression.

As the investor gains more experience, more properties are acquired as the agent is actively involved in the research needed to identify properties and has the resources to tap into other professionals such as appraisers, title agents and attorneys who will all benefit each time the agent makes a play. The agent is actively involved in every transaction. That’s one of the two philosophies: active. The other of course, is passive or “turnkey.”

Passive investing means evaluating a Real Estate Investment opportunity presented to you by say, that same agent and the team. But instead of preparing the home, listing the property and finding a buyer all you’re asked to do is participate as an investor. You provide all or part of the funds needed for the project and the work is performed by a professional team of agents, contractors, attorneys, title firms and others who are actively involved in various stages of the project.

Is one better than the other? Is being active better than participating in a turnkey project? There is no correct answer other than the level of experience you may have. If you don’t have any of the skills necessary in a real estate transaction but understand how to evaluate a proposal, then a turnkey project is in your future.