We all have that friend that is constantly preaching about the benefits of investing your money in the stock market, or in to real estate. Yes, you… you know who you are. We know that they are right, and that it is a good idea, and yet we never actually pull the trigger and do it. Maybe it’s because we don’t have the time, or nobody has actually come to you with a deal, or maybe it’s because we don’t know what our options are. Well, my friends, I’m here to tell you of a few options.
Joint Venture
A joint venture is when friends, or acquaintances, pool their resources together to accomplish a certain task. In the real estate world, it would be people putting their money in a pot to be partners and buy a property together. In a joint venture, each partner will receive the upsides of investing, and they also take on the responsibility of potentially losing money as well. In a joint venture, all parties involved are responsible for managing and handling the property.
Syndication
A syndication is when someone offers to manage your money for you, while you just sit and collect your preferred return, or your positive cash flow from your money. This is a great option for people who are too busy to make decisions or manage a property. In a syndication, there is a general partner (the one who creates the deal and does all the work with it) and there is one or more limited partners (the ones who offer their cash to be borrowed throughout the process of the business plan, and makes a percentage of money from the cash).
These are both great options if you have any side money, (in a home equity or sitting under your mattress) and you would like to get in to real estate investing but you don’t know how or have the time. When you join someone who does, you will learn a LOT about investing while you make money as well. Also, it really is a bonding experience. You and your partners or other investors will spend a lot of time together relishing in the benefits of investing.
There’s a famous quote that’s been handed down for years, and it’s fitting to investing as a whole…
“If you’re the smartest person in the room, then you’re in the wrong room.”
Creating opportunities for financial freedom 