Flip and Danny from Freedom Real Estate Group explain turnkey real estate investing, where you buy properties already renovated and ready to rent. They cover different turnkey models, why location and team matter, and how it works for busy professionals who don't have time to manage projects themselves.
Questions this video answers
Episode four
December 30, 2020
60 doors in the greater Dayton and Cincinnati area
"Signature series" and "Instant Cash Flow series"
Randy Brown
Foreign.
Here, owners and founders of the Freedom Real Estate Group family of companies.
And this is episode four of our vlog series which is intended to be a day in the life of the Freedom Real Estate Group family of companies and its team members. And today we're going to be talking about what is turnkey real estate investing? Flip.
Well, how ironic that that's our topic for today because as you see, Danny and I are here on vacation in beautiful sunny Arizona and this is the best way to easily relate to our out of state investors. The easiest way to define turnkey real estate investing is simply just that. You're investing property, your investment property. All you need to do is turn the key. It is 100% rent ready upon the purchase of that property.
Typically, this would mean that the property is completely renovated prior to your purchase, making it a top performing asset ready to provide you with great cash flow. Low we like to call this our signature series, which is the traditional turnkey real estate model. Now, we've recently come up with a second turnkey model that we think you're gonna like. It's actually already started, you know, taking some traction with us. It's called the Instant Cash flow series. What happens is we find a property that's already tenanted, it's got great cash flow and has no immediate renovation concerns. Now, typically we would have removed the tenant from the property to be able to renovate it prior to actually selling it to a client. In this case, we're going to leave the tenant in place because it's great cash flow, there's no immediate concerns. We're going to sell that property as is. What this does is provide the investor and our clients great flexibility and the ability to capture tax write offs. Because when the tenant turn comes along, you can hire our renovation company, we'll build out a scope of work that's customized to exactly what you want and then you're going to capture the tax write offs from renovating that property before the next tenant moves in.
Now we're going to dig deeper into that topic on a future podcast when our CFO Randy Brown goes into the tax benefits of investing the tax strategies of investing in real estate that way. Now, there are two things to consider if you are considering turnkey real estate investing. Number one is location, location, location. Now we like to say live where you want, invest, invest where it's smart. Number two thing to consider is the team that you're investing with. Now, again, you see that we're here on vacation here in Arizona, but the funny thing is Is that back in Ohio our team is busy renovating and renting out our own portfolio of properties.
That's right. So Flip and I actually own 60 doors in the greater Dayton and Cincinnati area. So just like you, we tell ourselves location, location, location. And we chose a place where we thought we could invest in that was smart. Of course we have a team that we love and that we rely on and that's really key for an out of state investor because when things inevitably go wrong, they're going to address it, get it back on track and that's what you need.
So turnkey real estate investing is ideal for the busy professional that understands the power of building wealth through real estate but doesn't have time to do it themselves. That's where the turnkey company comes in. We provide the hands off ability for you to build your own real estate investing portfolio in a place location that we invest in ourselves and with a team that you can trust.
That's right. So that's going to wrap it up here for episode four, I hope this short video, three to five minutes we always promised you that allowed you to better understand what turnkey real estate investing really is and allows you to understand your options of building your real estate portfolio, even if it's in a place where it's not your own backyard. I hope you enjoyed this sunny, kind of sunny Arizona episode and we will see you next week.
Four, take five. Danny and I are here on vacation in sunny, beautiful Arizona and this relates to all of our out of state investors because I don't know what else I'm supposed to say right now. You see.
Good job. And today our topic is what is real estate turnkey?
No, I don't know. What is that?
Want to start over?
Sure.
Typically this would mean. Are you going to look at the camera? That's all right. That's right. Okay, ready?
Owners and founders of the Freedom Real estate group family of companies.
And this is episode four I was ready for at that time. This is episode four of our.
