When it comes to real estate investing, investors have many options, and no two investors are exactly alike. For example, one investor might want multi-family residential property, another investor might invest only in commercial property, and another investor might invest in single family residential property.
Even within these different types of investments there are variations: An investor who invests in single family residences might wholesale the property, they might flip the property, or they might buy and hold the property.
The list goes on and on — these are just some of the big picture options that an investor can choose.
If you’re an investor who likes single family residential buy-and-hold investing, then chances are you follow a very traditional type of investment model:
The traditional buy and hold model
With the traditional buy and hold model, you find an attractively-priced property and buy it from the seller. Then you fix up the property so that it can be rented out. Then you place a tenant into that property. Then you manage the property yourself or you get a property management company to do it for you.
If you’ve ever done this traditional buy and hold model of investing before, you know just how time consuming and expensive it can be! (We described it in the paragraph above in just a few sentences but that understates the amount of work involved!) For example, you need to find the the property and have it inspected to make sure it is inhabitable. Then you need to negotiate with the seller to agree a price that makes sense for both of you. Fixing up the property is a time-consuming and costly effort, which you either have to do yourself or pay a lot of money to a contractor to do it for you. Even the slightest delay or item that you missed during your inspection could throw your timeline and budget completely out the window. The next step doesn’t get easier: You need to advertise for a tenant and then interview them and do background checks on each one. Finally you can place the tenant and your headaches are over, right? Wrong! You still need to manage the property now!
This traditional buy and hold model has worked for many years but investors will tell you that it is very time intensive and effort intensive for the return.
Wouldn’t it be easier if there was a faster, simpler way to invest in residential buy and hold properties?
There is! It’s called turnkey real estate and you can find these deals right here in Baltimore.
What is a turnkey investment property in Baltimore?
If this is new to you, we’re explain what is a turnkey investment property in Baltimore.
Think of it as a fast-track to accelerating the investing process so you can get to cash flow sooner than ever… without the pain and hassle and expense and time of the traditional buy and hold model.
Here’s how it works: An investor goes out and acquires a property, does the inspection, fixes it up, rents it out, and places a management company… and THEN that investor sells the property to another investor who would prefer to focus on the buy and hold part of the investment.
In the above scenario, the first investor is sometimes called a “wholesaler” because they are buying properties at wholesale and then getting them ready and selling them to other investors. The exact terminology doesn’t matter; what matters is the end result is: the second investor (the buy and hold investor) gets a cash flowing real estate investment without all the hassle and expense.
(You might be wondering: why would the wholesaler put up with all the hassle and expense only to hand off a cash flowing asset? The reason is: that’s what wholesalers do. They specialize in buying properties and then selling them for a fee to other investors, it’s an entire business model on its own).
So if you’re a buy and hold investor, a turnkey investment property is a very powerful strategy to invest because it collapses the timeframes that you would normally take to invest, while also speeding up the returns. Therefore, instead of buying a property and taking months to fix it up and put a tenant in it, you end up spending about the same amount but you skip the effort of finding the property, fixing it, and looking for tenants, plus it’s cash flowing right from the very first day that you own it!
Investors love this because it allows them to invest more often (since their attention isn’t pulled away from investing in order to negotiate with sellers, fix properties, and interview tenants) and because it accelerates returns.
Want to find out how you can tap into our portfolio of turnkey properties? These are cash flowing and ready to put into your investing portfolio. It’s fast, easy, and there’s tons of cash flow! Click here to fill out the form and let us know that you’re ready to invest in turnkey real estate in Baltimore