What exactly is the origin of the term “turnkey” as it relates to business opportunities? Simply put,what is a turnkey opportunity it’s a situation where a company plans and carries out the necessary strategies and processes needed to start a successful business or complete a profitable investment opportunity. 

All the buyer needs to do is provide the capital and just “turn the key” to open the door for the new business.

Turnkey operations are all around us and the most common is a franchise. Take for example any particular pizza chain that franchises. The pizza company has done all the heavy lifting by creating the original menu and selecting the proper sized ovens. The flour and other ingredients are pre-selected and employee training programs and manuals are ready to go at a moment’s notice. Company logos, employee uniforms and payroll services are already in place. All that’s needed is the investor providing the funds to open up a pizza shop.

As it relates to real estate investing, the very same approach to the business model is applied. Just like the investor for a pizza franchise doesn’t have to know how to cook and deliver a quality pizza from scratch, neither does the investor need to know how to complete the intricate details that must take place by multiple parties in order to arrive at a successful project.

There are attorneys that are needed, general and subcontractors and a first class collection of real estate agents. An experienced title agency that can evaluate and underwrite a title policy is a requirement as is a host of professional services. It’s impossible for an individual investor to learn all these trades alone in order to facilitate a successful real estate transaction. There’s no need to because the turnkey real estate firm has in place the business model along with the professionals needed to execute the plan. The turnkey model is a proven approach and only gets better with time.