Serious real estate investors most always agree that it’s best to live where you invest. Knowing local trends, neighborhoods and values is an invaluable asset someone from long distance simply cannot achieve. 

True, over time most anyone can amass huge amounts of data and make predictions oninvesting beyond your borders future values, rental rates and demographics, but there’s nothing that can match being on the ground and in the market every single day. Investors become experts over a shorter period of time and can more quickly evaluate a potential acquisition. But what if the market begins to dry up? Or what if property values have gone up so much, so fast, that some investors begin to be wary of potential bubbles?

Active real estate investors know that in order to find new deals you have to go where the deals are, not where it might be more convenient. Yet buying long distance means giving up the advantage of being local. It takes a real estate agent years working a farm to become an expert in the area and an investor can’t expect to reach that level of competence sitting in front of the computer screen.

That’s where a turnkey real estate company has its advantages. The turnkey identifies potential areas, scrubs micro-markets and finds properties to buy, renovate and sell for a profit. Turnkey real companies do all the research beforehand so the investor doesn’t have to. The investor need only approve or decline an offer from the turnkey.

While convenient, it’s critical to perform your own due diligence on the turnkey company. Get referrals, review previous projects and discover who the principals are, their background and reputation. A turnkey company primarily makes its money in the same way flippers do by buying and selling properties. Because the turnkey performs all the necessary research, acquisition and repairs, investors who buy from a turnkey company can’t expect to get a wholesale price on the purchase. Instead, the investor looks to the long term with a positive cash flow each month. If a once hot area has cooled off, consider working with companies who are active in markets across the country.