Vince Lombardi, the legendary former head of the Green Bay Packers who was just named the greatest NFL coach ever in an ESPN special, used to exhort his players each year by telling them at the first practice that from that day on, there would be a pursuit of perfection by the team. 

 Lombardi would then state that nothing was perfect so that goal was unattainable, but in striving for it, excellence would be achieved not only by the team, but also from each and every player.  Being named the greatest coach in NFL history obviously proves that this approach did work.  Investing in turnkey real estate properties will not be a perfect financial play, but it can produce excellent returns for your money.

This has already happened with the turnkey real estate activities of EquityBuild, a real estate investment firm headed and founded by Jerry Cohen, and EquityBuild Finance, its financing unit.  Being a principal in more than two thousand real estate transactions since 1984, Cohen has an excellent background in real estate investing.  So have been his returns: investors should look into the transactional deals, with an average of 17% being posted, and the private mortgage note funding registering in at a 12% yearly rate.

Turnkey real estate is when a property is selected by an experienced professional such a Cohen to be fixed up, rented out, and then managed.  The buyer benefits from the vast experience of Cohen.  In addition, as Cohen can also provide the financing, there is a degree of trust between the buyer and seller involved in the deal as a long term relationship is formed.

What turnkey real estate allows for is the best approach for buying and selling any asset for profit: a passive approach with a long term investing horizon.  As Warren Buffett, considered by many to be the best investor ever has often stated, the best holding period is forever.

As “forever” is eternity, like perfection it cannot be attained by a mere mortal. 

But excellence in investing can be reached with a passive long term approach in buying turnkey properties.  The individual investors benefits from the experience of others, with reduced concerns about obtaining financing.  In addition, suitable tenants are already occupying the property with a competent management team in place.

Buying turnkey real estate properties with a passive approach and a long term horizon puts time on the side of the investor.  Rental income increases in the United States at a rate of 5% yearly.  That means a turnkey property producing $1000 a month in rental income will be sending more than $2000 to the owner each month by year 15.  At the end of a 30-year mortgage, over $50,000 annually will be going to the owner in free cash flow as there will be no mortgage to pay.

Over the last two hundred years, gains from real estate have produced about 90% of the world’s millionaires.  While that is not perfect, it certainly demonstrates that real estate is a better than other asset classes for creating wealth over the years.  That superiority for real estate makes it an excellent investment, particularly when buying turnkey properties with a passive approach for the long term