When the Stock Market Falls, Turnkey Properties Rise in Appeal: - When the Dow Jones Industrial Average falls over 200 points, as it recently did, investors naturally look at other asset classes.  No matter what other investment is being considered, nothing so focuses the attention of the critical aspect of risk managementstock market events like the stock marketing plunging a couple of hundred points in one day.  

For these concerns, buying turnkey rental properties is an ideal way to profit yet still have effective risk management in an investment portfolio.

Turnkey properties are those that experienced professionals have fixed up, rented out to a suitable tenant, and manage so as to keep the value as high as possible for the new owners.  For those buying, it is an ideal situation as those with more experience take care of what is needed to do to find the best tenant and manage it so it continues to rise in value.  It relieves the owner of many of the potential hazards in real estate investing, which is the ultimate in risk management.

"I have been investing in real estate for decades and have been a principal in more than one thousand transactions, many of which have been turnkey rental properties," remarked Jerry Cohen, President and Founder of EquityBuild, a real estate investment firm.  "Over the period, I have hit every pothole and bump along the way.  Buying one of my turnkey properties allows for an investor to learn from mistakes and profit from the knowledge that I have accumulated in real estate investing over the decades."

Over the last two centuries, real estate has created about 90% of the millionaires around the world.

"This should be expected to continue," advised Cohen.  "Over the course of The Great Recession when the stock and bond markets plunged, rental rates actually rose in the United States.  Historically, rents rise in the United States by an annual rate of about 5%.  That means that the rent received from a turnkey rental property will double in less than 15 years."

Like the stock market, those who remain passive investors for the long term will prosper the most in turnkey real estate investing, too.  As legendary investor Warren Buffett has stated about his period for holding an investment, long term is forever.  Long term passive investing in any asset has tremendous advantages, ranging from preferential tax treatment to lower transaction costs.  

For turnkey real estate properties, passive long term investors should gain the most.  

They will benefit from rental incomes.  As the property is not being sold, there will not be the expensive costs associated with buying and selling real estate, such as commissions and transfer taxes.  Buying and holding an asset for the long term also allows for the full benefit of the asset appreciating in value to be realized, too.  

The markets do not rise at a steady rate (as the plunge in the Dow Jones Industrial Average showed), so it is impossible to know when an investment is at peak value.  Only from being a passive long term investor will an individual be able to enjoy the full gains of any asset, be it a turnkey rental property or a blue chip stock.