When you buy more of something you should get some sort of a discount, right? Maybe not necessarily on everything but when you buy in bulk you get a lower price. That’s the business model behind large discount warehouses that offer you savings on paper towels as long as you buy fifty rolls, right? buying in bulk lowers costsThat same buy and build in bulk process applies to large Turnkey Real Estate Investment firms.

By keeping the rehabilitation and construction costs as low as possible, there’s more profit when the project is complete.  A turnkey operation doesn’t just buy a gas stove and a refrigerator as needed but can negotiate lower prices with distributors by agreeing to purchase a certain amount over a given period of time. Or, the turnkey real estate firm will buy multiple ranges all at once and the distributor or manufacturer agrees to hold them in storage as they’re needed. This applies to all materials that a real estate investor needs as each property is acquired and rehabilitated. Carpet, drywall and fixtures bought in bulk saves money.

If the turnkey real estate company also concentrates on a specific property type efficiencies play an important part as well. Specializing in buying and fixing single family homes say that were built in the ‘80s essentially means the contractors are working on almost the same type of home with the only variances being the number of bedrooms or baths.

Whether it’s buying building materials or becoming a sort of single family factory doing more of the same thing over and over again will ultimately lower the costs. Regardless if the property is sold to another investor or held for long term appreciation and monthly cash flow.