Perhaps you recall the old “Ben Franklin” method of coming to a conclusion after evaluating a set of facts deemed “pro” and “con.” When deciding whether to take action on any particular issue, the person draws a vertical line on a sheet of paper.

On the left hand side are all the good reasons and onturnkey real estate investing the right side are the negative ones. Let’s take a quick look at six things that you may find when evaluating a turnkey real estate investment opportunity using this approach.

Pros

The reputation of the turnkey is critical and that performance is evidenced by a track record of success and knows when and where to invest. Real estate markets across the country can be as different as night and day.

Turnkey companies have property management teams within the organization to manage the asset after acquisition without needing to find property managers post-close.

The turnkey investment company has the complete set of professional tools in place to pull off a successful transaction from real estate agents to legal to finance.

Cons (and how to answer them)

Investor companies will mark up property that will eat into the individual investor’s profits. Yet the markup is outweighed by the returns provided by an experienced team.

It’s difficult to research a company’s experience and reputation. This may be true for “start-up” firms where the principals have little or no track record. To avoid this, only work with an experienced, reliable turnkey operation.

Certain real estate investors prefer to have a hand in the aspects of the evaluation, acquisition, rehabilitation and management. For those investors, working with a turnkey real estate investment company may not be the ideal choice.