Some people who invest in investment real estate do so as a full-time endeavor. This is because being a real estate investor can take a great deal of time and work. First, one must find a reasonably-priced property that can be improved upon for sale. Then, one must purchase the property, while taking into account any bureaucratic, financial, or legal entanglements attached to the property. Afterwards, the person must plan and carry out repairs, all while trying not to go over-budget. Finally, one must market the property for buyers.
However, there are people with other professional jobs who enter the business as a side project or one-time deal. If you are in the latter group, you may be in a situation in which your own time is a luxury you simply cannot afford to spend on renovating and advertising a property. Perhaps you already have a demanding full-time job, as well as family or community concerns that eat up the rest of your day.
If you are in this position, carrying out all the complex processes yourself is doubly daunting. Therefore, you may want to make your investment in a turnkey property. This is a piece of real estate that is completely ready for sale, or even for moving in—some turnkey properties can come with furnishings for the user. Of course, such a property is likely to be much more expensive than one that still needs a lot of work done. However, if you have a demanding, high-paying primary job, a ready-made piece of real estate might be your best bet. To borrow a term from the economists, you should also consider the opportunity costs. You may save money by taking more time on a cheap property, but you will lose the opportunity to generate more profits from your regular job and side projects.
When investing in a turnkey property, do make sure to look over the house or apartment carefully. There is a possibility that it is not as sale-ready as the agent or seller has told you. You may also want to get a lawyer, para-legal, or alternative realtor to look over any agreements you have to sign, to make sure you are not being stuck with the previous owner’s legal problems.
In this day and age, time is money. To save one, you may have to spend more of the other, but to the investor who is also a busy professional, an exchange could be well worthwhile.
Source: Jay Redding
Dy Associates is an Oakland Real Estate company specializing in commercial, home and investment property in the Oakland and East Bay Area. We provide real estate services including buyer agent, seller agent, short sales, commercial and investment acquisitions, loan facilitation, hard money lending, financing assistance property management. Articles are provided as information only. We do not provide legal or general investment advice.