Becoming a Hands-Off Investor

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My mission is to make real estate investing passive. That's the whole point! I don't want this to be a full time job. That's why I help other investors with turnkey real estate. Purchasing a turnkey property provides enormous benefits, but requires the investor to be hands-off. For some people, it can be hard to relinquish control and trust the process.

I always advise new investors to think about the kind of lifestyle they want to live. Are you getting into real estate investing as a job? Or are you trying to create passive income and more time for yourself? There’s no right or wrong answer, but you need to be honest with yourself.

Do you want to pick out paint colors? Do you want to manage the rehab process from start to finish? If you enjoy those tasks, then turnkey investing is not for you. If you can’t let go of those small details, you’ll probably want to be hands-on with property management too.

Part of turnkey investing is letting go. It’s supposed to be passive! Your job as the investor is to trust the process, put your faith in the team, and then sit back and collect the rent checks. 

If it's not in your personality type to let go of those details, I have a suggestion for you. You can harness that energy in the right direction. While you can't pick the paint or the tenant in a turnkey property, you CAN be incredibly meticulous in your bookkeeping and organization. Check out our podcast episode on how to organize your real estate investments.

 Tips on making real estate investing passive.

Turnkey Real Estate FAQ

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Q: How does turnkey real estate work?
A: We find off-market properties in America’s best rental markets, do a comprehensive rehab, and put them in the hands of investors. We do the work; you reap the benefits of passive income!  

Q: What is the cost?
A: Our homes are in the $40-50k range.

Q: Wait, $40-50k houses? Those exist?
A: Yes! We invest in C-class neighborhoods. Watch this video on low cost properties.

Q: Where are your rental markets?
A: Indianapolis, IN, Detroit, MI, and Jacksonville, FL.

Q: What is the return on investment?
A: You’ll receive a minimum of 10-12% net ROI.

Q: Do you own the property management team?
A: No, we work with third-party property management teams. Why? They’re established in the market and they know what they’re doing. We recommend these companies because we have had success with them, but your property is 100% under your ownership. You make the calls, so you can always choose another company, or self-manage.

Q: What are the cost/fees?
A: We don’t nickel and dime our investors. You’ll pay the total price ($40-50k) for the house, the rehab, and our commission. For more on how we make money, check out this podcast episode.

Q: How does the closing process work?
A: The entire process can be completed online.

Q: Do you accept traditional mortgages or offer financing?
A: Unfortunately, we don’t work with banks or offer financing. If you’re looking for ways to finance your purchase, you might want to consider these five ways to creatively finance your investment.

Q: How do I know if turnkey is right for me?
A: We’ve got a blog post for that!

Q: Where can I find your inventory?
A: We don’t post our homes online. Our intent is to understand your financial goals, and then match you with a property that fits your needs. 

Q: Where can I find reviews of your company?
A: Here’s our Testimonials page!

Q: How do I start?
A: Book a free, no obligation call with our team! Just pick a 30-minute time slot that works with your schedule, and we’ll match you with a great, cash flowing property! 

 Answers to the frequently asked questions about turnkey real estate investing.

The Best Rental Properties Are Not in Your Backyard

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If you’re like most people, you probably think the best way to get into real estate investing is to purchase properties close to home. You might browse Zillow for properties in your city, or drive past local homes for sale. Before you give a local realtor a call, I’ve got news for you: the best real estate properties are NOT in your backyard.

The problem with purchasing properties in your own neighborhood is that the ROI is likely not optimal. Since I reside in New Jersey, you might assume that I run my real estate business out of my home state. However, I would never purchase properties in New Jersey!

The properties here are astronomically expensive. The property taxes are incredibly high, and it takes a lot of time and money to rehab an even remotely affordable home.

Additionally, these properties aren’t worthwhile as the return on investment is low. I can’t build a successful business without a certain ROI. After all, breaking even is not a good investment.

The best markets in the country are located in the Midwest. Sound scary? It’s not. It’s worth it to break outside of your comfort zone and start earning a passive income. This is how skilled investors become wealthy through real estate. 

If you want to start building a passive income, you have to go where you’ll earn the highest return on investment. You’ll have to leave your comfort zone, and look for properties in different markets.

Don’t want to do the work? Our Midwestern turnkey properties are $40-50k, with a minimum ROI of 10-12%! Click here to book a free call; we’d love to match you with a great property!

 You may think the best way to get into real estate investing is to purchase rental properties close to home. Before you give a local realtor a call, I’ve got news for you: the best real estate properties are NOT in your backyard.

Is Turnkey Real Estate Right for You?

Is turnkey real estate right for you? This is an important question to ask yourself, because let’s be honest: it’s not for everyone. As always, I suggest real estate investors try to reverse engineer their lives.

Think about your end goal; imagine what you want your life to look like down the road once you’ve achieved your Freedom Number. What do you envision your future to look like? Will you be spending your free time renovating properties? Or do you plan to collect rent checks passively, while you spend your time with your family doing the things you love?

Turnkey real estate is not for someone who is Type A and needs to be hands-on. If that sounds like you, we have a DIY playlist on YouTube that you might find helpful.

Here’s are a few key indicators that you and turnkey are a match:  

  • You don’t know the first thing about finding a great investment in the right market.
  • You don't have the time to commit to everything investing entails.
  • You don’t want to get your hands dirty doing a rehab.
  • You don’t want to worry about hiring contractors.
  • You don’t care to pick out paint, or find the right materials.
  • You don’t want to interview property management teams to find the right fit.
  • You want a totally passive experience and high ROI.

It’s a fantastic solution for those investors who want the benefits of high ROI and monthly cash flow, but don’t want to put in the work. Turnkey is totally hands-off, you just sit back and collect rent checks.

The entire system is rock solid. You don’t have to worry about paying contractors crazy rates, and your property management team is ready to go! Everything runs incredibly efficiently, which makes your business scalable.

If you’re ready to pick up your first turnkey property, let’s talk! Book a free call with our team to talk about making your real estate goals happen.

 Is turnkey real estate investing right for you?

Is It Safe to Invest Out of State?

Is it safe to purchase real estate investments out of state? Should you be worried about what could go wrong? What should you consider before purchasing a property so far away?

Many investors are initially fearful about purchasing a property outside of their home state, but as long as you've got a few things covered, your business will run seamlessly! 

I find that whether or not an investor wants to purchase out-of-state is a personal preference. In my business, I knew it wasn’t profitable to purchase buy and hold properties in my home state of New Jersey.

Properties in my area are simply bad investments. The cost to acquire is too high, and the taxes are outrageous. In my research, I’ve found that the ROI in New Jersey isn’t lucrative. If I want to build legacy wealth, I have to acquire properties with a high ROI.

Therefore, I always purchase my properties outside of New Jersey, and in my experience, it’s perfectly safe. I find that it’s just as safe, if not safer than purchasing properties close to home.

Worrying about safety is a mental barrier. Anything that happens to a property out of state could also occur nearby. In order to feel comfortable, I ensure that I have a professional, trustworthy property management team in place. I work with a team that has an A+ rating with the Better Business Bureau. They’re always nearby, and proactive about tackling and issues that may arise.

Get outside of your state, get outside of your comfort zone, and get a high return on investment!

 Is it safe to purchase real estate investments out of state? Some things to consider when buying out of state rental property.

5 Advantages of Buying a Turnkey Rental Property

Investing with a turnkey provider can be a fantastic way to get started quickly and passively. The turnkey company finds a property in a proven rental market with high ROI, rehabs the home, and places it in the hands of a trustworthy and established property management team. This process allows investors to collect cash flow without having to work, or worry! It's a great option for investors who want to make money without doing the heavy lifting. Here are five major benefits to purchasing turnkey rental properties: 

1) Saves time! Many people that I know who are striving toward financial freedom are not looking to create a second job. Investing in real estate can be time-consuming if you’re going it alone! The process goes like this: find a property with high ROI in a great market, appropriately rehab the home to make it suitable for tenants, screen tenants or find a property management team. If you want to spend your free time with your family, working with a turnkey provider allows you to invest without putting every second of spare time toward your investing business.

2) Immediate cash flow. Working with a turnkey provider is incredibly passive. Not to mention, turnkey providers are so experienced, the entire process is streamlined. Someone else does the work, you sit back and collect rent checks! 

3) Cheaper entry point. Unless you are well-researched, you’ll probably make a few mistakes starting out. I did—I overspent on the purchase and rehab of my first few properties. A turnkey provider knows how to find properties under market value. They also have all the pieces in place—materials, contracting team. Working with a turnkey provider is a great way to keep your costs low.

4) Diversification. Having a diversified portfolio is always a good idea, and turnkey rentals can help you spread your wealth around. Here at Morris Invest, our properties are in select Midwest markets. For most existing investors, our properties are typically located far away from their other investment properties.

5) Retire early. If you aren’t out there actively finding properties and rehabbing them, you can build your wealth faster! Turnkey properties speed up the process, so you can reach your Freedom Number quickly.

Ready to move forward with turnkey rental properties? Or do you have some lingering questions? Our team loves to talk to investors like you.  Our calls are free, with no obligations. Pick a 30-minute time slot from our schedule and we’ll discuss your goals and how turnkey rental properties can help you reach financial freedom. 

 Five major benefits to purchasing turnkey rental properties - a great option for investors who want to make money without doing the heavy lifting.

How to Buy Rental Properties Out of State

When most people decide to become a real estate investor, they typically start searching for properties in their hometown. I get it. It seems like the easiest way to begin. If you find yourself searching for homes on Zillow, or driving around your neighborhood, I’d advise you to stop as soon as possible.

Hear me out: The markets with the highest ROI are most likely not where you live. I know for me, the best properties are not close to home. Here in New Jersey, it’s expensive to acquire a home. And don’t even get me started on the property taxes…

That’s why I recommend investing across state lines. You might think that sounds scary. Most people think that being so far away from your rentals sounds like a pounding headache.

It can be, but it doesn’t have to be. If you put the right strategies in place, your real estate business will run seamlessly, and you’ll reach your ultimate goal: passive income! Here are seven steps you need to take in order to invest out of state.

1 ) Know that you can’t do it alone. You need to have a team in place; otherwise you’ll be pulling your hair out. You can either use a turnkey provider, and if you’re interested we’d love to help you with that. Otherwise, get busy assembling a team. You’ll need to surround yourself with reliable people you can trust—a contractor, property manager, insurance company, and a title company.

2) Fall in love with ROI, not real estate. I’ve said it before, and I’ll say it again: all properties are the same! They’re just four walls and a roof. It doesn’t matter what your property looks like. What matters is that you’re receiving cash flow every month. Find the right deal, not the cutest house.

3) Choose a legal entity. Personally, I use LLCs at the discretion of my accountant and lawyer. You should also consult your accountants and lawyers. Once you figure out which business structure is most beneficial, and in which state you need it, it’s very simple to set up. Find the department of state website in your property’s state, and click on the “Start a New Business” tab. In my experience, it’s very easy and costs about $100.

4)  Use a property management team. This is critical. If you’re thinking, “I can collect a rent check myself,” please reconsider. There are endless benefits to working with a property management team. They’re experienced and on site. They know the market, how to price appropriately, how to screen tenants, etc. Here’s how to find the right team for the job.  

5) Do your research! Take a look at the market, the neighborhood, and read up on the process of real estate investing! If you need a few suggestions, here are five of my favorite real estate books. However, there is such a thing as doing too much research! Don’t get so caught up in the learning phase that you never take action. There has to be a balance. Figure out the basics, and then learn as you go.

6) Get an inspection. Your property needs to be up to codes. Additionally, this is not ALL about the money. Part of your motivation should be to provide a safe and stable home for your tenants. For more about appraisals and how to handle them, check out this video series.  

7) Now, relax! If you’ve got these pieces in place, everything will work out. If you make mistakes along the way, don’t allow it to derail your progress. Stay motivated, focused, and start collecting those rent checks! 

 In my experience, the best way to build a profitable and robust portfolio is to invest in the best rental markets in the US where ROI is high, and risk is low. That may not be where you live. Check out this 7-step guide to buying rental property out of state!