What, exactly, is a turnkey real estate investment? By literal definition, it means the physical work and evaluation of an investment what is a turnkey investmentopportunity is completed by others and the investor only needs to supply the funds. Different turnkey operations may limit the amount of professional services provided

but a true turnkey operation handles the details from the initial research to managing the property after the project has been completed and tenants are living in the unit. But is that all the investor needs to do? Provide the funding?

From a “share the work” perspective, sure, providing the funds for a transaction is at least as important as any other facet of the project but the work doesn’t stop when the initial funding check issued. Turnkey real estate developers have a team of experts on staff that takes care of critical parts of the potential investment. Companies hire a fleet of pros who are charged with locating the right property, finding contractors who can provide efficient, accurate estimates when figuring how much it will take to rehabilitate the asset. The turnkey operation provides the brains that private investors don’t need to locate. However, if the investor thinks all that is needed is to write a check, a reputable developer will remind the investor there’s more to it.

Primarily, make sure any investment is one that you understand. Be crystal clear of the project’s timeline. Is the acquisition cost reasonable? Do market rents support the numbers provided? If the property is to be sold, how are interest rates doing and will the property easily qualify for conventional financing? Writing the check is a major part of the investor’s job but before that check is written it’s crucial there are no more questions about the opportunity and is part of your financial plan. Turnkey investment opportunities should be carefully constructed so the investor can carefully review them. It’s more than just the money.