There is a lot of pressure on investors to buy properties from turnkey companies. Unfortunately, turnkey companies host some of the worst investments out there. Below are reasons why you should run from away from turnkey companies.
Turnkey Companies Are Not Personal
Turnkey companies generally have generic sales strategies that follow specific processes. Thus, they are not designed to be personal and to look at your particular circumstances. Moreover, these companies have minimal attachments to their own properties. This means that they do not think much about the current market conditions or about the locations of their properties.
They Turn up the Pressure
There are many stories of investors who explain why they cannot invest right now; these stories range from unexpected circumstances to the death of a family member. Across the board, most of these turnkey companies just respond with more pressure for the investors to buy properties. They play on the fear of a market swing, to try and convince investors. They suggest that the market is going to rise as soon as tomorrow, and the investor will miss out on a deal.
Turnkey Is Just a Catchphrase
Turnkey companies might not provide a wide range of services. Due diligence is beyond important when dealing with these companies. Many do not provide the technology, infrastructure, or systems that a true turnkey investment needs for success.
It Is Expensive
Turnkey companies often show properties that are more expensive than if you were to do the work yourself. Owners are paying a premium for the service and convenience that these companies supposedly provide.
Location and Distance
Many times, investors who buy into turnkey companies are doing so as the properties are outside of their area. However, many of these companies do not visit their own properties. So, if the investor is also physically far from the property, there is minimal oversight.
The bottom line is that it is better to invest in hands-on projects, where you can perform due diligence and verify properties in person. Do not cave into pressure from a turnkey company. There will always be investment opportunities. Taking the time to find the right investment opportunity ensures a higher chance of success for your needs.