Retail, Wholesale & Turnkey Properties: What’s the Difference?
Smart real estate investing starts with understanding what you are buying, and why. You need to know what properties and locations to consider, how to go about buying them, and what happens after the purchase. To assist you in making the wisest investment decision, let’s take a look at the differences between retail, wholesale, and turnkey properties.
Retail property is purchased either directly from a seller or through a real estate professional. The seller typically seeks fair market value for the house. In most cases, the buyer intends to live at the property and wants to move in with as little work as possible.
Why Invest in Retail?
Any property purchase serves as an investment. The retail purchase is an investment in a place to live, with the hope of gaining value over time that will provide returns if and when the owner decides to sell. The focus, though, is not so much on making money in the investment, but in finding the right home and neighborhood in which to live.
Wholesale property tends to be distressed, meaning that it needs large-scale repairs or has title issues. This may also include property purchased through the court system, or from banks seeking to liquidate properties. The properties tend to be cheap, but require inside knowledge and/or a great deal of due diligence to purchase, and a significant follow-up investment of time and money to repair physical issues and title defects.
Why Invest in Wholesale?
People who buy wholesale tend to be local investors who understand the market and want to flip the property to make a profit. This often requires years of expertise and relationship-building, and even then the buyer assumes the risk of higher-than-expected repair costs or of not being able to flip the property.
This type of property is purchased after being freshly rehabilitated, and then rented out with a lease or property management agreement in place. It enables the buyer to proceed with the peace of mind that a pre-established income stream provides.
Why Invest in Turnkey?
Buying turnkey property allows you to immediately generate cash flow from your investment. Because turnkey property is usually priced below market value, you get built-in equity at the time of purchase. It goes further, though, by giving you the opportunity to build wealth without the hands-on involvement required with a wholesale purchase. It creates an immediate income stream through expert property management.
Making Your Money Work for You
If you’re seeking immediate wealth building and income streams, turnkey property can be a powerful investment. NexGen Invest can guide you through every step of the process based on your individual investment goals, while minimizing the risks of wholesale investment.
Contact Us today to find out how we can help you make informed investment decisions and put your money to work for you.