When real estate investors talk they normally discuss the deals that went wrong. This defeatist attitude scares many investors away from a very lucrative market. Using Turn Key Investing, you can significantly improve your investment knowledge and ability to make money in a difficult market.
Investing in real estate can be very lucrative if done correctly. By setting your goals and priorities before you begin you can eliminate most if not all of the hazards of investing. Turn Key Investing helps you to eliminate the costly hazards of investing while developing a perpetual cash flow.
Pre Purchase Goals:
Pre purchase you are looking for the right property. The best way to do this is to partner with a real estate professional who is experienced in fast appreciating property. The property must be in an area of rapid appreciation and one where the rental market is strong. The investor must plan on holding the property for at least 5 years.
Purchase Goals:
The right price for the property along with the right mortgage product and the correct tennant strategy for the location must be determined. The goal is to have neutral or slightly positive cash flow during their ownership of the property.
Unless you are a truly experienced investor you should hold off purchasing additional property for a least 6 months. This allows you to gain some experience and get comfortable with your investment strategy. You will be buying at least 5 properties over the next five years.
Sale Goals:
Depending on the area in which you purchased you will be ready to sell the property at or near the 5 year mark. By purchasing and holding for this period of time you will avoid many of the costly repairs that can eat at your appreciation. This property appreciation is where the cash actually begins to flow.
As you sell your property you will receive the appreciation as profit. This profit will allow you to purchase another property and still have funds available. Depending on the area you can easily have a $60,000 to $180,000 cash flow without the hassles of long term property ownership.
Benefits:
This most glaring benefit of this type of strategy is that it allows you to begin see real profit and cash flow in a very short period of time. This allows older investors to very quickly increase their income and do it quickly.
To correctly implement this strategy requires a very clear plan and help in managing the intracacies of property buying and financing. Always be sure to get the advice of a competent Realtor and Mortgage Planner when looking for the correct path to success.
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Creating Perpetual Cash Flow
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