Hello friends, and welcome to another episode of Ask Marco where I answer your investing related questions.

You know, I love the questions I get, unfortunately, I get so many of them. I'm having a hard time keeping up, but I do plan on booking an afternoon or a day just to record a whole bunch of them all at one time. So if you've submitted a question and I haven't gotten to it yet, and I know I have some that date back about a month or so ago, a, I apologize in advance and I will try to get through all of them. So just hang in there. Today's question comes from Jebrelle and he says, Hello Marco. I love your podcast. It provides so much actionable content for all levels of investors. My question is purely seeking your opinion. I have purchased a turnkey rental with Norada in Jackson, Mississippi and a property through another provider in St Louis, Missouri.





I listened to a lot of podcasts and read a lot of articles and books. I often hear how using turnkey as your strategy is similar to quote riding a bike with training wheels. I've heard others say how an investor can't get the equity capture, which is true and how that can slow down his or her progression. Okay, so I'm going to clarify that here in a minute. He says, I'm a w two employee. I teach middle school and I'm a part-time real estate agent in North Carolina. I have a wife and no kids, but I do value my free time in the evenings, away from work. I've been struggling with the idea of using turnkey throughout my investment journey or eventually stepping away and doing some more active things like the bur method and for those listening, the bird method is spelled BRRRR and that simply is an abbreviation for buy, rehab, rent, refinance, and repeat.

It's, it's an act of very active approach to real estate investing. He goes on to say, I really enjoyed working with one of your counselors throughout my buying process. It was so easy. That's the thing. Turnkey worked so well for my lifestyle right now, but I'm torn between the potential equity capture and acceleration of my portfolio by using more active methods. I feel like a squirrel in the middle of the street not able to make up his mind so I'll close now. Your input will be greatly appreciated. Thank you. All right. Jebrelle great question. Well very well-articulated so turnkey investing works very well for a lot of people. It is not ideal for everybody but it does work for everybody. It really is going to come down to two things. I think one are your expectations and two is what is your strategy? Are you a passive real estate investor and want to build it as quote unquote easily and passively you've done in working with us and your investment counselor here or are you a more hands-on slash active real estate investor and the, and that's really the given the take there.

Do you want to take a passive role in investing or an active role? If you want to take a mostly passive investment role, then work with your team or work with a company like ours to build your, your portfolio as passively as possible, whether they're rent-ready properties or turnkey properties. And I've talked about that in a previous episode. The flip side of that is if you have the time, the willingness, the desire, the resources, um, a certain level of education or, or understanding or knowledge the capital and the risk tolerance to be involved on the active side, whether it's the bird method or something else, then try it out or maybe just go down that road. Now I, I will say this with strategies like the burn method where you're buying, renovating, renting, refinancing and repeating that process. You need the right team and you definitely need to be in the right market or submarket.

So the numbers work and you certainly can't make this work in a market where you have a lot of competition and or low inventory. The other thing with active methodologies is they don't always work out the exact way you want them to. Now,