Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

The strategy as people know it, is buying these properties from the turnkey providers | Ali Boone

Name: The strategy as people know it, is buying these properties from the turnkey providers | Ali Boone
Uploaded: 2022-11-06T15:00:20+00:00
Duration: 55 s
Channel: Bob Fraser
Description: In this segment, the speaker clarifies what "turnkey" means in real estate, distinguishing the literal condition of a property—rehabbed, tenant‑occupied…

6 Nov 2022 · 1 min

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In this segment, the speaker clarifies what "turnkey" means in real estate, distinguishing the literal condition of a property—rehabbed, tenant‑occupied, and managed—from the common usage that refers specifically to properties sold by turnkey providers. These providers purchase distressed homes in bulk, renovate them, secure tenants, and set up property management, then sell the fully‑rented units to investors. The speaker characterizes these firms as "glorified flippers" whose primary market is investors, noting that true turnkey properties existing independently of such companies are rarely discussed. The prevailing investment strategy, therefore, is to buy directly from these turnkey providers and then manage the property onward.

Chapters

turnkey itself, while it technically refers to the condition, like you said, it's rehabbed, tenants in place, property managers. When people are talking about turnkey rental properties, like you could own a— there could be a property right next to you that is a turnkey property because it's in that condition. But when you hear people talk about turnkeys and turnkey rental properties, they're most likely talking about the properties that come from turnkey providers. So these companies go out, they buy distressed properties in bulk, they rehab them, they place tenants, they have property management set up. And you, the buyer, are buying it from this company. So they're really just glorified flippers. They're focusing on flipping to investors, but it's very rare that they— while the term technically just refers to the condition, it's very rare that I hear people talk about turkeys that are outside of coming from these turnkey companies. So the strategy as people know it is buying these properties from the turnkey providers. You get the turnkey property and then you go forward on it. Got it.