Within the highly competitive world of real estate investment, some investors focus solely on the acquisition of land and homes that require a complete renovation. With a seemingly lower price tag based on the amount of construction needed to create a desirable and inhabitable space, some investors believe this will yield the highest return on their investment. However, just a few unforeseen complications, contractor issues, permit setbacks, and other challenges, even the most seasoned investors, like Sean Tissue, recognize the benefits of exploring alternative types of real estate investment. Thus, turnkey property investment becomes a viable and worthwhile venture for many real estate investors.
What is a Turnkey Property?
In its simplest form, a turnkey property is a property that is considered to be “move-in ready” upon purchase without the need for additional work, licensing, or construction necessary. In the case of real estate investing, turnkey properties may be acquired by investors, and rented, leased, or otherwise occupied directly under the supervision of the investor in a landlord/renter relationship. Alternatively, in a more passive scenario, turnkey properties can be purchased by investors who do not seek additional landlord duties. Under this more passive process, turnkey rentals are managed by third-party companies, allowing for the potential of out-of-state investors to benefit from a strong rental market, while still providing renters with unprecedented service and support.
These third-party companies excel in purchasing and rehabbing under-valued properties in coveted markets, much to the benefit of passive turnkey investors, creating an opportunity for both parties to benefit from the partnership. One such forward-thinking company is Centureon Investments. Centureon is run by CEO and founder Sean Tissue, a real estate investor and developer with over a decade’s worth of experience. Under Tissue’s leadership, Centureon has become an authority on the acquisition, rehabilitation, sale, and management of turnkey properties in the Detroit rental market, and throughout the Midwest and Southeast regions of the United States.
In many markets across the country, an imbalanced real estate market dictates that purchasing a property is more cost-effective than renting the same property, which allows investors to capitalize. Within highly populated renter’s markets, this environment makes the investment in turnkey rental properties a stable, safe, and fruitful venture. Turnkey real estate investors can expect to capitalize on their investments within selected markets, and thanks to the national scope of these companies, can do so remotely with all paperwork, marketing, and even rental turnover conducted by all-inclusive companies like Centureon.
Benefits of Turnkey Real Estate Investment
For many real estate investors, simplicity, and seamlessness are key. With busy schedules and the need to oversee many ongoing projects simultaneously many investors do not want to spend an exorbitant amount of time dedicated to the oversight of daily operations. For this reason, investing in turnkey properties, especially those managed by turnkey real estate companies, can be an effective solution for those looking to generate passive income from a simple, seamless, and effective turnkey investment. Centureon Investments creates a simple process for investors, employing a highly specialized team of industry leaders to expertly handle the acquisition of property, all paperwork and permitting, rehabilitation through licensed contractors, all other aspects of the turnkey investment process, including renter turnover. Essentially, this eliminates the need for the investor need to focus on the complex and tedious processes required to successfully invest in turnkey properties.
In addition to greatly simplifying the process of real estate investment, turnkey properties managed by the likes of experienced real estate developers like Sean Tissue can fully eliminate the need for investors to be on-site, allowing investors to benefit from the rental markets without having to be on-site or physically present throughout the entire process.
With turnkey properties managed by experienced turnkey real estate companies, another benefit lies in the expedited earning timeline. With all renovation, marketing, and paperwork completed by the third-party expert, investors purchase properties that are ready for tenants to move in swiftly. This ensures cash flow starts almost immediately, without the need to spend time and money on construction permitting, licensing, and even marketing of the property. Because of this, leading companies like Centureon are able to deliver ready-to-live-in single and multi-family properties immediately, enabling a minimized waiting period between investment and the influx of money.
Investing in turnkey properties also offers long-term benefits based on the condition of the property at purchase. Since each turnkey property has been expertly restored to new or like-new condition, investors can remove the need for maintenance repairs, structural issues, or other typical landlord concerns associated with the maintenance of older, non-renovated properties. For investors looking to take on a passive role, or remote investors, the long-term integrity of already-rehabbed turnkey properties provides security that other, more traditional real estate investments don’t.
Unique Considerations for Turnkey Properties
While the previously mentioned factors paint the picture of an overall easy and seamless experience, there certainly are considerations to take into account for investors contemplating whether turnkey real estate investments are right for them. Obviously, due diligence is necessary and recommended before jumping into any investment opportunity, and that holds true for turnkey investments, as well. For industry professionals like Sean Tissue, operating completely transparently allows potential investors to feel informed, valued, included in the process, and generally positive about their professional partnerships. This transparency allows all parties to remain on the same page in terms of operations, financial commitments, and ongoing status of the investment.
This need for ongoing transparency plays an integral role for remote investors and investors who need to employ a “hands-off” approach. It also allows the investor to have complete faith and trust in the turnkey real estate company to employ the same commitment to the success of the venture as the investor would. Of course, for turnkey real estate companies like Centureon, maintaining investor satisfaction and fostering positive long-term professional relationships are the basic principles of successful operations that propel the company forward. By aligning goals between investors and turnkey management companies, it may appear fairly obvious that turnkey real estate companies depend upon the success of investors’ endeavors; however, placing complete faith and trust in a company’s management of a property is something that investors must feel confident in to ensure the long-term success of a project.
By providing extensive services prior to investment, including complete renovation, as well as comprehensive and ongoing services post-purchase, turnkey real estate companies must charge a premium to investors looking to do business with them. Though these premiums are certainly offset by the level of service provided in exchange, investors must determine whether a potential reduction in overall profitability is offset by the reduction in maintenance needs, landlord duties, and overall property management. With a favorable return present, many investors feel confident that paying a higher premium for turnkey properties is a worthwhile way to invest without having to take on an overwhelming daily operational commitment.
How To Choose a Turnkey Property
For potential investors looking to enter the world of turnkey real estate investment, choosing an up-and-coming, heavily populated, rental-friendly market is key to ensuring an ongoing return on investment. With the ability to choose remote destinations that will be expertly managed by professional turnkey real estate companies, investors are encouraged to explore various markets and are not limited geographically. Thus, research into potential markets is vital to choosing a rental-friendly location conducive for investment opportunities and the needs of the potential investor. In many markets, rental returns are showcasing returns that are higher than the national average, with those returns expected to increase with employer and industry growth on the horizon as markets continue to grow and expand. By investing in these burgeoning locations, real estate investors help propel the local housing market further, adding to the growing value of real estate in the particular local market, securing fruitful returns for all involved parties.
In addition to choosing an appropriate location for investment, real estate investors interested in managed turnkey properties specifically need to proactively research the turnkey real estate company that will be responsible for the overall operations of their investment. Because it provides such extensive hands-on services, the company is integral toward gaining initial and long-term investment returns and maximizing that return over a long period of time.
For experienced professionals like Sean Tissue, the key to instilling confidence for potential investors lies in the overall scope of expertise within each sector of the investment. Centureon, for example, provides expert services from the inspections to construction and development projects needed to rehabilitate the property expertly, as well as subsequent comprehensive and ongoing management of the property. For a vertically-integrated company like Centureon, building long-term, trusting relationships is a feat accomplished through exemplary services, industry know-how, and an impressive portfolio of successful investment endeavors.
When choosing a turnkey investment company to manage a real estate investment, potential investors should feel comfortable asking all questions, maintaining transparent and ongoing communication, and being continuously involved in the process of investment via walk-throughs, telephone calls, and site visits. With the right company committed to the long-term success of an investor’s turnkey property, long-term returns can be expected, making this style of investment appropriate and appealing for many types of investors.
With many bustling markets seeing transitions in terms of rental properties, an influx of residents, and increasing demand for rental units, these markets can provide an excellent opportunity for real estate investors. For remote and hands-off investors, turnkey properties offer an excellent solution, allowing investors to benefit within this sector in a manner that is most conducive to their needs. Turnkey investments might not be for everyone, but for anyone looking for a less stressful introduction to the word of real estate investment, turnkey investments are a great place to start.
About Sean Tissue and Centureon Investments
With over a decade of experience as a real estate developer and investor, Michigan-based Sean Tissue has become a property management industry leader. Throughout this career, Tissue has played a pivotal role in over 2,500 real estate transactions and has successfully managed assets in excess of $300 million. With an expansive portfolio and a wealth of knowledge, Tissue has become a leading voice for championing local investors, and individuals interested in up-and-coming real estate markets.
Since August 2018, Tissue has served as the CEO of Centureon Investments, a full-service company focused on the acquisition, development, and management of real estate. Tissue leverages his experiences, extensive communication skills, technical savvy, and industry know-how to spearhead growth for Centureon.
Through its all-inclusive mission statement, Centureon provides the tools for remote investors to confidently invest within their desired markets. Centureon believes that complete transparency and the championing of its investors are the backbone to long-term professional relationships and success. Team members at Centureon aim to educate investors, provide extensive market analysis, and instill confidence through educational resources. As leaders in acquisition, development, and management, the Centureon team aims to provide personalized services to each investor, property owner, and all involved parties.
Centureon prides itself on being vertically integrated and able to successfully navigate the entire process of real estate investment, development, and management for investors across the Midwest and Southeast regions of the country. As CEO, Tissue is committed to ensuring complete satisfaction to every one of its investors while providing structurally safe, aesthetically beautiful, and meaningful housing within up-and-coming neighborhoods.