Why Turnkey Investing Makes Sense For Millennials

While many think that millennials are too busy traveling, taking pictures of their food for Instagram, and riding their bikes to work to think about real estate, recent studies are saying otherwise. Although millennials are delaying their first big real estate purchase, they are still active in the real estate game, just in a slightly different way.

Although there are hundreds of real estate investment strategies to choose from, more and more young professionals are turning to turnkey investing, which allows them to reap the benefits of owning real estate investments without doing a lot of the background work that goes with it. This fits perfectly with their active lifestyle and sometimes-tight budget. Most millennials can’t afford to quit their jobs or take off a lot of time to devote to rehabbing a property. Most don’t have a big stack of cash laying around to put towards renovations and other fees associated with flipping houses for profit. Turnkey investing changes all of that. It basically hands a ready-to-rent property over to the investor on a silver platter. House acquisition process? Done. Renovations? Done. Finding and screening tenants? Done and done. Investors start earning money from day one, and this is an ideal situation for first-time investors.

Owning investment properties takes a significant amount of time and effort to be successful. Landlords who don’t invest the time and money to make the property livable for tenants will begin to either get less than desirable tenants or more extended vacancies, both of which can be expensive. Turnkey investing allows investors get started with passive real estate investing without sacrificing much of their already limited time and funds.

Millennials, either because they are living on their own for the first time or because they have limited experience with home repairs, benefit from turnkey investing because most of the renovations are already done. While investors should take the time to learn necessary maintenance and renovation skills, it’s not necessary to have a degree in DIY to get started with investing. Since the property is already renovated and ready for renters, investors can learn as they go. They don’t need to pass up a great deal just because it requires work beyond their skillset.

Whenever there is an opportunity for investment, there is a risk. Although real estate is one of the safest ways to invest, it’s not foolproof. Regardless of age, investors should always be thorough when it comes to research and education before making any big moves. Millennials research everything; from the sushi place down the street to which computer is best for recording their vegan-themed blog. This is a helpful trait when starting out as an investor as well. Doing the research, building the team, and understanding the process will make it easier for millennials to be successful in turnkey investing.

Millennials aren’t known for settling down. They have a free spirit about them that drives them to seek out experiences and adventures. They value experiences over material things, which is why they’d rather spend their money on a trip to Paris than on a down payment for a house. This traveling lifestyle is another reason why turnkey makes sense for this generation. Since turnkey properties don’t require investors to devote a lot of time at the property to get it ready for renters, investors can move freely without worrying about staying close to their investment property. It also opens up the window for investors to buy property out of state if it is more affordable than where they currently live.

For investors looking to minimize their risk and maximize their profits (isn’t that all investors?) turnkey investing is the way to go. And it’s definitely not just millennials and young professionals who can benefit from turnkey investing. Anyone who is looking for a steady stream of income without all of the tedious background work that goes along with traditional real estate investing will find turnkey investing to be the answer they’ve been looking for.