Hi, it’s Peter Aquart from American Wealth Builders.
If you’re reading this then you have at least a passing awareness (perhaps more than that) of turnkey investing.
If you’ve spent any time talking to our team, or reading our emails or blog posts, then you know that we believe turnkey investing is the best way to plan for, and prosper beyond, retirement.
After all, what could be more game-changing than to acquire a real estate investment that is cash flowing right from day one, and has a management team in place so you don’t have to pick up the hammer or take those 3 a.m. phone calls from tenants with an emergency.
However, there are still myths about turnkey investing that people mistakenly believe. So in this email I want to address them to make sure you are only ever dealing with facts…
Myth #1. Turnkey investing is expensive.
Fact. It’s really not.
When people think about acquiring real estate, they often make the first comparison to their own house or how much properties cost in their neighborhood, town, or city. However, just because your neighborhood is perfect for you to live in doesn’t make it a good investment property.
At American Wealth Builders, one of the strategies we use is to find very specific investment locations where you can acquire a property affordably in a city with a large population that needs to rent. (That’s one of MY jobs at American Wealth Builders – to keep my finger on the pulse of several markets to make sure we’re always finding emerging opportunities)
For that reason, you can get a cash flowing turnkey property for an affordable price – often between $20k and $40k per property – and many of our clients are surprised at HOW MANY properties they can acquire with the money they have.
Myth #2. You must have the cash.
Fact. No, you don’t.
When our clients want to acquire a property, many come to us with cash – perhaps money they’ve saved up or money they have pulled out of a stock portfolio. But that’s just a portion of our clients…
Many of our clients acquire properties in other ways, perhaps through a loan or a home equity line of credit. And while this might not be the right choice for every client (you need to decide if it’s right for you), this plan works for some of our clients.
One of the best ways to invest (and it’s a way that most people don’t know about) is to turn your IRA or 401k into a self-directed IRA… which you can then acquire real estate inside your IRA.
The income earned builds up in your IRA, often replacing the need to contribute further! Talk to our team if you want to learn more about this, and we can also make an introduction with a great company that can help you set up a self-directed IRA.
Myth #3. There are no turnkey deals in your area.
Fact. It doesn’t matter.
When people think about investing, they often think about investing in their area. However, someone living in California, where houses are priced hundreds of thousands of dollars more, may not find turnkey deals as easily.
But that’s okay. At American Wealth Builders, we’ve perfected the strategy of “virtual investing” in which an investor acquires property in a completely different city or state than where they live.
This “investing-from-a-distance” strategy is a mind-blowing concept for real estate investors who have only ever invested in their area. But our track record proves over and over: why do you need to invest in your area when you have a tenant already in place and a management team already in place?
Myth #4. You can’t make as much money doing turnkey as you can owning the property yourself.
Fact. You’re not measuring it correctly.
Someone mentioned this one to me recently and I calmly walked them through my response because when people say this, they’re simply not making the correct assumptions; they’re comparing apples and oranges.
Most people say, “Well, I can acquire a property for $25,000 and I can put $15,000 into the property and then I can find a tenant and then I can manage it myself and make $600 a month.” They like the sound of those numbers.
But with turnkey it’s totally different: We acquire the investment and put our expert team in to clean up the property and get it ready to rent – and then we rent out the property.
So we can put in a higher value for the money we spend into the property, since our team does this all the time. And our systems in place enable us to find a good tenant.
Then the property management team might take 10% or 15%. So, at the end of the day, you might acquire the property for $30,000, and get $540 a month…
But you’re saving all the up-front work (and capital) of finding the property, acquiring it, and fixing it up; of finding a potential tenant and making sure they’re a good fit; of managing the property by visiting monthly to collect the rental check, or responding periodically to any tenant calls for repairs.
In other words, we can acquire the property often for less than you could.
We can make better repairs and rental-prep at a lower price than you could.
And you’ll save a ton of time and hassle by not having to deal with the tenant regularly.
So you end up spending the same (often less) and while you might get SLIGHTLY less than you normally would if you managed the property yourself, you still save a ton of time and money each month that you’d normally be giving to the property.
In short, turnkey investing is affordable, can be acquired by any investor in the U.S (and elsewhere), is financially accessible whether or not you have all the cash in a savings account, and can deliver a better and more profitable return than if you acquired and managed a rental property yourself
If I’ve cleared up the last few questions you have about turnkey investing and if you’re ready to start investing with our team, give them a call today and they’ll get you set up.
Here’s how to contact me:
Chief Operating Officer
American Wealth Builders
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