A turnkey property is an investment property that a company acquires and rehabs—and in some cases already gets tenants in the house—for a client to then own and receive regular income (cash flow) from renting.
We provide the services you need to find, purchase, and invest in Memphis turnkey properties, along with property management so you can be elsewhere and know your property has tenants and any fixes are being addressed promptly. There's nothing more bothersome than investing in a property but having to manage every aspect of it. This is why we find and provide turnkey properties in Memphis, Tennessee.
READ MORE ABOUT TURNKEY PROPERTIES
Financing Turnkey Properties
The Most Common Mistakes When Investing in Turkey Income Properties
Avoiding Turnkey Investment Scams
HOW DOES TURNKEY INVESTMENT WORK?
A turnkey company finds and rehabs a house for an investor to then own and rent. Many turnkey companies also provide property management for investors, so their property can be easily managed no matter where the investor lives.
To illustrate how this type of property investment works, let’s look at an example. Let’s say we have a man named Joe who lives in California. Joe has some extra money set aside for investments and he wants to diversify his portfolio. He decides the Memphis, Tennessee, real estate market is strong because growth is consistent and median house prices are relatively cheap.
Joe could either search for a property on his own, purchase and rehab the property all by himself. Then he could try to get tenants in the house and keep it rented. However, Joe doesn’t have time to search intensively for a house, go through the purchasing process, or get tenants in the house.
Instead, Joe would like to own a piece of property, develop a new stream of cash flow, and diversify his investments without having to spend too much of his time managing everything.
Joe finds Memphis CashFlow, which specializes in turnkey property investment and management. Joe can easily select a property from Memphis CashFlow, even one that already has tenants, and he can even receive rental assistance for the tenants so he doesn’t have to manage it.
Joe decides to move forward. He invests in one of Memphis CashFlow’s real estate properties, he already has tenants so he starts receiving his stream of cash flow, and he leaves the property/rental management to Memphis CashFlow and its partners.
USING A TURNKEY INVESTMENT GROUP VERSUS INVESTING ON YOUR OWN
We understand some people want to invest in real estate on their own. That’s understandable if you have the time and resources to do so. Turnkey property investment is positioned more for people who either don’t have the time and/or don’t live in the Memphis area.
Our process is “turnkey” because we find the homes, rehab them, work to find tenants, and then offer them up to investors like you. We provide value by saving you time searching, rehabbing, and actively finding tenants.
Local Memphians might try to invest on their own because they know the market, are familiar with neighborhoods, and can actively manage their properties locally. However, we work with many investors outside of Memphis and they need experts on the ground to help them find, select, purchase, and manage their properties. We specialize in that exact way. Instead of you trying to invest on your own and likely experiencing major headaches, we do a lot of the heavy lifting for you so you can come and invest in a way that makes sense for your portfolio.
If you have more questions, please refer to our turnkey FAQs page where we answer more questions you might have.
HOW CAN I GET STARTED WITH TURNKEY PROPERTY INVESTMENT?
If you’re interested in this type of real estate investing, then you can certainly start in two directions: you can start searching our properties first, or you can contact us directly to learn more about our process and properties.
We recommend creating a plan for your investment goals and strategy, especially if this is your first step into real estate investing. You don't need anything "formal" but we would like to know more about your goals so that we can align our services with your needs. Again, we are here to assist you in the investment process. Please don't hesitate to reach out and ask us questions.
HOW DO I KNOW IF I’M A GOOD FIT FOR TURNKEY PROPERTIES?
Turnkey property investment certainly isn’t for everyone. There are certain types of people who particularly succeed in real estate investment. Just like any investment, there are risks. And real estate is also riskier than investing in a 401k or IRA, but the returns are high and value is actualized sooner. So who is this best for?
PEOPLE WILLING TO TAKE CALCULATED RISKS
No investment is a sure bet. We all saw this during the financial crisis a decade ago and around 9/11. Retirement accounts like 401Ks and IRAs saw tremendous losses. What were supposed to be sure-fire investments proved to have their own downs.
Investing in turnkey properties is risky. You need to be willing to take calculated risks. Owning a property comes with the risk of reduced property value, property damage, a lag in tenants renting, or higher than expected rehabs. You need to calculate whether you have the buffer to take the risks of owning a turnkey property.
However, working with a turnkey property company like Memphis Cashflow will absolutely cut some of the risk you would experience on your own or with a sub-par investment company.
Memphis Cashflow knows the Memphis market, trends, neighborhoods, local contractors, rental landscape, and more. If you don’t know anything about the Memphis market you’re buying into, then you’re elevating your risk tremendously.
You could potentially buy a property over its value in a poor neighborhood and never know it until you’re too deep. And then struggle to rent it for the amount you need to make any cash flow.
So again, there are risks in real estate investing, but investing with a company like Memphis Cashflow will allow you to cut many risks and help you calculate other risks.
PEOPLE WHO ENGAGE & RESEARCH
You don’t stumble into remarkable investments. People who make great returns may get lucky at some point, but they set themselves up for that luck to occur because they researched and were engaged.
The people who make the most from turnkey property investing are ones who are engaged in the process and doing research on their own. We can help anyone have a great investing experience here in Memphis, but the people who make the most of it are ones who have a plan and are engaged.
But what about “passive income” from turnkey properties?
Passive income comes after being engaged. Again, you don’t just stumble into passive income. People who have passive income build it. And to build passive income from turnkey property investing you must be engaged in the beginning.
PEOPLE WHO ARE FOR THE LONG GAME, NOT SHORT GAME
Remember, we’re investing in turnkey properties in Memphis as a source of income in the future. Sure, you can make some income now from your properties, but we’re investing in real estate now so we can have more in retirement.
Thus, real estate investing is a long game, just like other retirement investments.
This means we stay focused on the long-term plan and don’t get swayed by the short term ups and downs. There are certain decisions we can make in the short term that will help us in the long term, but people who succeed here are the ones who are focused on years, even decades down the road.
PEOPLE WHO UNDERSTAND REAL ESTATE
If you don’t own property of your own, how are you going to know what to do when it comes to investment properties?
You don’t have to be a real estate agent or professional, but you do need to know something about real estate in order to take a swing at turnkey property investing. If you think you don’t have the knowledge or experience, then you might want to consult with someone in your network who sells the property or owns multiple properties. They probably have a wealth of knowledge and experience they’d gladly share with you. You just need to ask.
If you already know how real estate works and own a property or multiple properties, then you’re not new to this at all. You just may be new to the Memphis real estate market, which is completely okay. We’re here to partner with you because we’re the experts when it comes to Memphis turnkey properties.
Bring your real estate knowledge and goals here, and we’ll partner with you to make them a reality.