One of the best ways to make money is to invest in a variety of coveted properties. These could be houses that you can flip for a profit, rental units that can bring in a steady stream of income for many years, or commercial lots that can be sold to developers. Even when the market in general is down, you can be relatively sure of a comeback at some point. But how do you break into the game in the first place? What do you do if you spot a tremendous buy but don’t have the cash or credit to purchase it on your own? The answer might be to turn to a real estate investment group for help.
If you’re not familiar with what a real estate investment group does, then you definitely need to read on. There are generally two different types of groups out there. The first kind of real estate investment group is made up of private buyers who might not have enough capital to purchase profitable properties on their own. They are essentially business partners that pool their funds to give themselves more buying power. Ownership is split depending on the amount of money the partner brings to the table, and profits are divided along the same lines. If you have a few associates that you would be comfortable going into business with, then you might want to consider forming this kind of partnership. Just remember that friends and money don’t mix very well, so choose your partners wisely.
The second type of real estate investment group resembles venture capitalists more than anything else. As you might know, venture capitalists invest in start-ups that can’t get enough money through traditional bank loans. This is how many familiar entities, including Facebook and YouTube, managed to go from dorm room projects to major Internet players worth billions of dollars. A real estate investment group can serve the same role. You just have to find one of these groups, get a meeting time (no small feat), and make a sales pitch. If the investors like what you have to say, they’ll agree to fund your venture for part-ownership in the deal. Of course, there’s always a chance that the real estate investment group will bypass you entirely (especially if you’re a small player) and snap up the property on their own, so you have to be careful who you decide to talk to.
There’s no feeling quite like stumbling across a property that you know you can turn into a money-maker. The problem for most of us is getting the initial financial backing to allow us to close the deal. In cases like these, the right real estate investment group might be able to help get the ball rolling and put you on the track to something big!
Robert S. is a contributing writer who has many interests including home services, self improvement, building web sites and more! You can see his articles on Air Duct Cleaning Toronto and Self Improvement 101.