The Big Idea

Turnkey rental property investing is inherently simple, eliminating 95% of the effort and time involved in rental property investing.  But for those seeking a 100% hands-off experience - along with the benefit of a higher level of professional management - a brand new approach to turnkey investing could be even better than it was before.

Points to Ponder

• Turnkey rental property investing eliminates 95% of the effort involved in rental property ownership, but for some, that's not enough
• "Buffer Fund" is an investment fund that invests in rental properties and is an alternative to direct 100% ownership of individual properties
  • Not the same as a REIT (Real Estate Investment Trust)
• "Negatives" of investing in Buffer Fund rather than directly into real estate:
  • Loss of control
  • Potentially decreased liquidity
  • Loss of use of 1031 tax defferred exchange
• "Positives" of investing in a buffer fund rather than directly into real estate:
  • All involvement and time requirements are eliminated
  • Your legal & financial risks are each greatly diminished
  • Superior diversification
  • Economy of Scale
• What do you think?  We really want to know your opinion... please use the comments area below to sound off!

Resources

• Full transcript of Episode #249 (this episode) of Self Directed Investor Talk is available here
• Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here.

Next Episode

• In the next episode of SDITalk, we look into Solo 401(k)'s and discover a significant difference in risk for that account type based on a common and simple misconfiguration

 

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