in each market you choose. You'll have to manage construction costs, do quality inspections, and make sure that the work is done before you pay for it. A hands-on approach often feels like you can save money, but it’s often about the same cost as using a turnkey provider. Turnkey providers spend serious money to find the best off-mar- ket properties. They usually have full-time renovation crews and can get the work done for less. Using a turnkey provider means a lot less risk for you. You can get a home in- spection and walk away if you don't like what the inspector or even an appraiser says. If you buy your own property and renovate yourself, any surprises belong to you as well. If you are lucky enough to live in a place where you can buy great cash- flow investment deals and if you have some construction background and enjoy project management, you can do just fine on your own. You’ll build the long-term relationships that you need, and you’ll be close enough to do your own inspections and walk- throughs. You might be better off doing the work yourself, especially if it's something you enjoy. When investing out-of-state, how- ever, using a turnkey provider can be a great way to find well-renovated, reliable, and profitable properties. If investing close to home, don’t shy away from the DIY approach if it suits you. • WHEN IT’S RIGHT TO DO IT YOURSELF
at least five years of life left. The hot water heater should be newer than eight years, generally. The heating and cooling system should be newer than 15 years. Turnkey properties should also be updated electrically with circuit breakers, not fuse boxes or knob-and-tube wiring. A home inspection will ensure you are aware of future potential up- grades and the quirks that inevitably come with an investment property. You’ll also want to get a copy of the full scope of work done by the turn- key provider. The goal is to buy your property with eyes wide open. Trans- parency is important when choosing a turnkey provider to work with. PROFESSIONAL PROPERTYMANAGEMENT To invest outside your local mar- ket, you will need professional prop- erty management. You'll also want to interview the property manager recommended by the turnkey provider
or use one recommended by another reliable source. Either way, be sure to ask about their leasing times, tenant screening, fees, costs, and mainte- nance. You can even ask about the turnkey provider you are working with.
CAN YOU INVEST OUT- OF-STATEWITHOUT A TURNKEY PROVIDER? Yes, you can!
Anything you outsource to a turn- key provider or a property manager, you can do yourself. That doesn't mean you should! It's always an option to find a real estate agent who specializes in foreclosures. If, how- ever, the agent mainly cares about getting a sale, are you getting a prop- erly assessed investment property? Also, in today's market, the most profitable deals are found off-mar- ket. Most agents don't have access to these. You are also going to need excellent contractors who can finish in a timely manner and on budget
Jared Garfield is a private hedge fundman- ager, real estate investment trainer, and turnkey property provider. Withmore than 20 years’ experience, Jared is a speaker
and real estate advisor. He has conducted bus tours for “Flip This House” and “FlippingVegas”. He currently hosts the ROI WealthWatch Podcast.
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