Passive income is the magic word for most people, especially when it comes to their investments. They want to find that special opportunity that requires little expertise and time and not a lot of stress and strain, but something that will bring in a steady and reliable check. They want that something that they can count on to help build up their retirement or finance another dream!
There are a lot of people who sell “passive income” in real estate investment, and they’re selling something that doesn’t actually exist. They capture a would-be investor’s imagination with images of kicking back on the proverbial Easy Street while they watch the money roll in.
While passive income does exist in real estate investment (spoilers: it’s not a myth), that’s just not what it looks like. Even the most passive, “hands-off” real estate investment isn’t totally detached.
It’s going to cost every investor something—but it’s also going to bring a great reward along with it. The question is, is it worth it to you?
Where’s the Passive Income in Real Estate Investment?
We’ll keep it simple and to-the-point. The best method of real estate investment that is both passive and will yield you real returns while allowing you to remain in control of your own investment future is turnkey real estate investment. That’s speaking from experience, not bias.
So, what makes turnkey real estate investment passive and other real estate investments well, not? What’s the catch?
What Sets Turnkey Real Estate Investment Apart?
Within turnkey real estate investment is the radical notion that investors shouldn’t have to wear any hat other than owner. Their investments should be sources of income: not stress, worry, or anxiety. In this model of investment, investors partner up with a turnkey provider (such as ourselves). Someone who has a lifetime of experience not only in investing, but in real estate, finance, accounting, and all of the ins-and-outs of the business.
Because they have this experience, turnkey investing is ideal for new investors and busy professionals who may not know all that there is to know. They don’t have to stress about making a fatal mistake and ending their investing career before it begins because they have this expertise to lean on and guide them every step of the way.
This turnkey provider doesn’t just sell the investor a property.
They provide guidance for financing, the renovation process from beginning to end, and, in most cases (and certainly in ours) property management services so that you never have to worry about the details.
It takes the hassle, stress, and anxiety out of investing in real estate and makes the process as passive as it can possibly be.
Is Turnkey Real Estate Too Good to Be True?
There’s no denying that it sounds too good to be true. Most people have to ask “what’s the catch?” when it comes to turnkey investing. Here’s the deal: when you’re receiving premium services and getting out of juggling many of the responsibilities of day-to-day rental property operations, it’s going to come with a trade-off. That trade-off is a price of admission. Compared to other investment models, turnkey real estate may seem more expensive.
Some say it’s too expensive. That’s one of the biggest criticisms lobbed at turnkey investing.
Ultimately, however, the model works. Why?
You ultimately still pay what the properties are worth.
The expertise of your turnkey provider hedges you against risk.
Experienced property managers help retain tenants and allow you to scale quickly.
You can read more in “Is Turnkey Real Estate Too Expensive?”
How Passive is Real Passive Income?
If you want to earn real passive income (versus the imaginary passive income that gurus and get-rich-quick salesmen like the pitch) there are a few things you need to know. One: no income is ever truly passive. Not good income, anyway.
If you want to be successful at earning passive income in the real world, you have to be willing to do the work. That means investing time into your strategy, learning about what it is you’re investing in, and caring enough to communicate in a meaningful way with the people who you’re partnered with. You’re going to have to invest financially in good people and excellent services, because they are the backbone on which you can build great streams of passive income.
Your turnkey real estate partners will bear the burden for you when it comes to stress and hassle and all of the tiny minute details. But ultimately, it’s up to you to set the course for your own financial future.