Not long ago, purchasing an investment property without setting foot inside seemed almost unthinkable. Today, however, it’s a go-to strategy for many real estate investors expanding their portfolios.
Across the country, thousands of out-of-state landlords are snapping up turnkey properties sight unseen, capitalizing on lucrative markets far from home.
When a promising investment opportunity catches your eye but your schedule doesn’t allow for an in-person visit, remote purchasing can be an efficient solution. In fact, this approach has become a popular choice among savvy investors.
Before jumping into that seemingly perfect deal you spotted, here’s what you need to know about buying turnkey properties sight unseen.
A turnkey property is a fully prepared, “ready-to-rent” investment. This means it’s either been recently renovated or kept in excellent condition, often requiring no additional work.
In some cases, the property may even come with tenants already in place. For investors looking to start generating income right away, a turnkey property offers an appealing and efficient opportunity.
Buying a turnkey property sight unseen comes with risks, so it’s important to take extra steps to ensure you’re making a good investment.
If visiting the property in person isn’t an option, investing time in thorough research is non-negotiable. Dive deep into the property details, the neighborhood, and the local rental market to ensure a well-informed decision.
Relying on a single source of information can be risky, too. Always cross-check key data points like cap rates, market trends, and rental demand across multiple credible sources to verify accuracy.
Understanding the neighborhood is equally important. What kind of tenants might the property attract? Are they likely to stay for the long term? What are the local crime rates? These factors can significantly impact your investment’s success.
The more comprehensive your research, the clearer your understanding of the property’s potential and the surrounding market conditions will be.
Thanks to modern technology, you can explore a turnkey property remotely through virtual 3D tours, detailed videos, and high-quality photos. Ask the seller to arrange a virtual tour or provide a walkthrough video that explains the layout and highlights each room in the property.
Take the time to carefully review these materials. If anything seems unusual or out of place, don’t hesitate to raise your concerns with the seller to ensure clarity and transparency.
When purchasing a turnkey property sight unseen, third-party inspection and appraisal reports are crucial for making an informed decision. Carefully review these reports to identify any significant issues that might not be apparent in photos or videos.
These professional assessments provide invaluable insights into the property’s true condition and the future of your investment.
If you’re purchasing a property from a turnkey company, it’s essential to conduct thorough due diligence to confirm the company’s reliability, honesty, and legitimacy. Similarly, if the property comes with an existing property manager, take the time to research their reviews and evaluate their operational practices.
Ensuring you’re working with trustworthy professionals who have a solid reputation in the industry is key to making a confident and successful investment.
If you’re buying a turnkey property sight unseen, it’s likely located far from where you live. In this case, finding a property management company will be essential for handling maintenance, rent collection, routine inspections, and overall management.
Before finalizing your purchase, take the time to interview local property managers. Choose one who provides all the services you need and whom you trust to safeguard and manage your investment effectively and maximize profit.
You’ve done your due diligence, set up a property manager, and are confident in purchasing your turnkey property sight unseen. The next step is to secure your financing.
Now, since you are buying an out-of-state property, it may be helpful to use a local mortgage lender who knows the market and can add a personal touch to the experience.
With everything in place, the settlement date has finally arrived. By granting your real estate agent power of attorney, you can skip attending the property closing in person. A few digital signatures and possibly a video conference call are all it takes for the property to officially become yours.
If you’re a Los Angeles real estate investor who’s always on the go, closing deals, and seeking your next profitable opportunity, purchasing a turnkey property sight unseen could be the perfect strategy for you.
Just some of the benefits of remotely purchasing a ready-to-rent investment property include:
Remember to always do due diligence and research before buying a turnkey property sight unseen to avoid making an expensive mistake.
Buying a turnkey property sight unseen can be an overwhelming process. That’s where Lotus Property Services can help!
As the area’s leading property management company, we ensure your property is taken excellent care of. From rent collection to maintenance coordination to routine inspections to detailed accounting and reporting, you never have to worry about a thing!
So, before you close on your turnkey property in Los Angeles, give us a call to see if we are a great fit to manage it!
If you enjoyed this article, make sure to read What Are the Best Questions to Ask When Buying Rental Property? next!
Being a landlord in Los Angeles comes with its unique challenges, from complex tenant laws…
Thinking about turning your current California home into a rental property? You're not alone. Owning…
Maximizing the profit of your rental property in Glendale, CA, is not just beneficial—it's essential…
Glendale, California, has long been a desirable location for both residents and real estate investors.…
Investing in rental properties can offer a steady stream of income and significant tax benefits,…
Are you looking to invest in real estate but worried about the upfront costs? Did…