Thinking about investing in turnkey properties? Make sure you read this article which reveals the 5 secret keys to building a passive cash flow with turnkey property – which works here in the 93105 zip code, and elsewhere.
Many individuals spend their entire careers working, only to retire at 65 with minimal savings. However, savvy turnkey property investors recognize the opportunity to build a portfolio that generates passive cash flow. By doing so, they can achieve early retirement and enjoy a comfortable lifestyle well before traditional retirement age. If you’re thinking about creating your own real estate portfolio, here are 5 keys to building a passive cash flow with turnkey property.
#1. Find the capital
Turnkey properties frequently offer affordability compared to purchasing a primary residence. However, acquiring such properties still necessitates capital. Fortunately, various funding sources are available, ranging from cash reserves to inheritances and even utilizing your IRA. (Contact us at (805)505-7373 for additional insights on alternative capital acquisition methods.)
#2. Acquire one property
For certain investors, diving into a substantial portfolio of turnkey real estate can seem daunting. While it might be a suitable move for some, if you find it overwhelming, we recommend beginning with a single property. Incorporate it into your portfolio and experience the benefits firsthand. Subsequently, consider acquiring additional properties, gradually expanding your investment portfolio. Many of our clients opt for this approach, acquiring several properties—some in a single transaction, while others invest over time, steadily growing their real estate holdings.
For those hesitant about diving into a large portfolio of turnkey real estate, starting with one property offers a manageable entry point. By testing the waters with a single investment, you can assess its performance and gauge your comfort level with real estate investing. As you become more familiar with the process and witness the benefits firsthand, you can gradually expand your portfolio by acquiring additional properties. Whether you choose to accumulate them all at once or gradually over time, the key is to approach real estate investment with careful consideration and a strategic mindset. Remember, each property added to your portfolio represents another step towards achieving your financial goals.
#3. Get comfortable and see the process
Once you witness the operational process and simplicity of turnkey real estate investing, you’ll likely find it quite straightforward. Moreover, as you begin to experience the influx of cash flow from your investments, you’ll undoubtedly feel enthused and motivated to further expand your portfolio. Many investors allocate a portion of their cash flow (if not held in an IRA) for personal spending while wisely saving the remainder to reinvest in additional properties. This cyclical approach to reinvestment enables continuous portfolio growth and wealth accumulation over time.
#4. Find more capital
Once you feel good about the process and how easy it is to own your first turnkey property and to have all that cash flow coming in, we think you’ll want to do more! So then you can go out and start finding other ways to get capital – if you didn’t before, maybe now get a Self-Directed IRA and put some turnkey properties in there, for example. Or perhaps take out a loan to fund more.
#5. Partner with others
A more advanced strategy would be to even partner with others. This can work in a few different ways but you might think of it like this: the other person puts up some of the money and you put up some of the money and/or your own connections to a turnkey real estate company like us, and then you split the cash flow.
Turnkey cash flowing real estate can be a great addition to your portfolio, and these 5 keys to building a passive cash flow with turnkey property will help you build a cash flowing portfolio.