Real estate investing often lures many people into thinking that with a few swings of a hammer, hefty profits will follow. In fact, real estate investing is a very complex subject with lots of moving parts, risk and pitfalls. That's one reason why so many educational products, programs and gurus stay in business.
In recent years, numerous companies have created "turn-key" real estate investments to simplify the process for new and existing investors. The definition is as an all-inclusive service that acquires, renovates, sells and/or rents properties for the investor.
But do they really work? The answer is, some do, some don't. Be careful.
Let's take a closer look. First, real estate investing is a "profession" that requires the investor to master numerous disciplines and nomenclature in an ever-changing market climate, including:
• Market Analysis
• Property Analysis
• Acquisition Strategies
• Exit Strategies
• Asset Protection
• Property Management
• Financing
• Renovation
• Contracts and Contingencies
• Sales & Marketing
• Negotiation

Whether you're getting started, part- or full-time investing with real estate, there are always new tricks to learn. So using turn-key platforms gives the investor the ability to leverage the expertise of the individuals within the company, and supplement any gaps in his/her own knowledge.
Next, these programs can deliver the benefit of bulk pricing. In some cases, the provider has greater buying power than an individual, and therefore can offer discounted properties. This saves the investor the time and trouble of researching hundreds of properties, trying different acquisition strategies, and making lots of offers.
Can't swing a hammer? No problem. These types of real estate investing programs often include renovation work in the purchase price. However, many pitfalls lurk in the renovation process. I've heard of providers who made promises about the quality of work and later were found to be untrue.
One thing I like about this type of program is an investor can diversify his/her portfolio by accessing properties in stable markets, perhaps outside of their primary residence. Numerous markets are doing well, although news reports rarely say anything about that. So whether you live in Florida or California, through a quality turn-key program, an investor can create income from solid markets with low unemployment, low vacancy rates and good economies.
Look out for "hidden costs." Some turn-key programs don't disclose the related costs associated with closing, pre-paids, property & casualty insurance, home warranty, and renovation.
Turn-key operations require numerous affiliated partnerships to get the job done. So check out who is on the team doing the various tasks.
That brings me to one of the biggest challenges with turn-key businesses. There's no profit or return on investment without a retail buyer or rental tenant. So know your exit strategy and verify your turn-key business has a sales and marketing plan in place to solve this challenge.
Ask "what if" questions, like what if the tenant or buyer defaults? What if the renovation work exceeds what I was told? What if the turn-key provider doesn't find me a buyer or tenant?
I created a turn-key real estate investing company called America's Home Program which is a comprehensive service that successfully addresses each of the challenges mentioned in this article. I've put everything together for the investor, so the only decision to make is "how much do I want to invest?"