The stock market is often thought of as something of a gamble. Stocks go up and down on a dime. When it comes to investing in the stock market, there are certain stocks that are thought of as bringing security, profitability and safety: they’re called ‘blue chips’. Blue chip stocks usually cost more to buy into – but the cost is considered well worth it for the security investing in this kind of stock brings.
When it comes to investing in real estate, there are lots of different approaches investors can take. As with the stock market, there are the penny stocks (think: distressed properties, foreclosures), low-risk, high-risk, and of course, blue chip. At Hipster, we think turn keys are an investment method that yields great results. To us, turnkeys are the blue chips of real estate investing.
Turnkeys: Priced Higher For Higher Returns
You know the saying: you get what you pay for? When it comes to investing, it’s true. When you buy a property that is literally falling apart, you’re going to have to pump money in to rehab it and make it sale or rental ready. When you buy a property that has been expertly renovated by a team that does nothing but transform properties, you pay a higher upfront price – with less costs down the road.
Turnkeys: Predictable Returns
Blue chip stocks are steady – and so are turnkeys. Though there can be small bumps in the road (vacancies, a pipe here and there), these bumps can mostly be predicted. When you can predict your outgoing expenses (more or less), it’s a whole lot easier to make a lot of money in real estate – instead of closing your eyes and hoping for the best. When you buy quality, you usually get quality. Work with reliable turnkey promoters and suppliers, check references and relax.
Turnkeys: Automated Investing
When you invest in blue chips, you don’t need to sit at the computer or on the market floor watching for price fluctuations on the hour. Why? There’s so much less risk involved. Find an investment pro to manage your portfolio for you – and relax. This same principle applies to turnkeys. When you invest in turnkeys, you can relax. There’s so much less to manage – find a great property manager to handle your properties and pursue your other interests (or purchase more properties).
Everyone has a different investing style – whether its real estate or the stock market. What’s yours? Hipster thinks blue chip, or turnkey, investing is an excellent choice for ROI’s that delivery, year after year. If you want to grow your money without big risks, turnkey properties can really do the trick for you. Whether you want to start saving for retirement, establish a trust or become an ex-pat, turnkey and blue chip investing offer some serious lifestyle benefits worth serious consideration.