Turn-key Rental Investment Properties in the USA
Until now, most properties offered to Australian investors as quality investment properties in the United States have been turnkey rentals.
We have been using this model for the past six years, and will continue to offer this model moving forward. We have many clients who have been delighted with purchasing a fully rehabbed and tenanted property that is then capably managed by a professional real estate company.
This is how turnkey rentals work
- Real estate companies purchase discounted properties. They buy directly from a distressed owner, wholesalers, or real estate agents/brokers.
- To add value and present a quality product for their clients (and their tenants), the property is renovated.
- They then employ the services of a marketing company to sell the properties to investors. Marketing companies add their own set of ‘Fees for Services’ they provide, which adds considerably to the overall cost of the property.
Fortunately, most of these real estate companies are ethical and offer a great product to their clients – otherwise they would soon be out of business. Historically, Australian investors have found that sometimes these companies have extremely high business overheads which they factor into their price for putting the deal together. This ultimately leads to a lower yearly return and more involvement from the investor.
The good news is, we do things differently. We do not add any ‘Fees for Services’ but derive our income solely by way of a referral fee directly from the source in the USA. We never ‘double dip’ for profit. Most importantly, we present as much information about the turnkey rental as possible to our clients and investors.